Post transaction, Sanofi confirms that it will hold circa 30% of the share capital and voting rights of EUROAPI and will remain a long-term strategic partner, supporting EUROAPIs growth ambitions as an independent company over the coming years. Sanofi exchanged its Merial animal drugs business with Boehringers over-the-counter (OTC) drugs businessbasically, Sanofi picked up Boehringers consumer health business. Sanofi assumes no responsibility for the information presented on this website. Sanofi Forward-Looking Statements Sanofi bucks industry trend by pledging to keep 'stand-alone' consumer unit, Insight Weekly: TMT deals plunge; bank analysts cut 2023 outlook; US retail sales rebound, Infographic: The Big Picture European Outlook 2023, The Pipeline: M&A and IPO Insights | There will be better days for investment banking. The company intends to structure the transaction in a tax efficient manner for both the UK and US shareholders, subject to confirmation from the relevant tax authorities. Arguably the most well-known J&J product is its Covid-19 vaccine offering; the companys one-shot jab is the only single-dose coronavirus vaccine on the market, and is sold on a not-for-profit basis. It is provided for information only. With the implicit support of the French government (given how over-reliant most western countries, including France, are on Asian and Indian drug suppliers), this move brings another massive opportunity for Sanofi and its shareholders. We believe that empowering individuals, the community, and healthcare professionals to promote and practice self-care will lead to people all over the world being healthier. You may opt-out by. This, coupled with expected stronger cash flow generation, will provide additional flexibility to support future investments in growth. The CEO's review of the consumer unit coincided with a trend for pharmaceutical giants like Johnson & Johnson and GlaxoSmithKline PLC to simplify their diversified structures and double-down on lucrative franchises, such as cancer and rare disease, driven by pioneering science, data and technological advances. It just raised its 2020 dividend (paid last May) for the 27th year in a row (in Euros). 14 February 2023. With a diversified technology portfolio, EUROAPI is positioned as the world's leading manufacturer of small molecule API (including complex chemical synthesis molecules, biochemical molecules from fermentation and highly potent molecules). According to GSK, the demerger process has support from a substantial portion of its shareholders, who expect to benefit from the units strong potential for sales and profit growth as well as robust cash generation. Sanofi (XPAR:SAN) Dividend Payout Ratio as of today (March 01, 2023) is 0.00. Dividend Payout Ratio explanation, calculation, historical data and more The NewCo will be a global Consumer Healthcare company with a wide-range category of consumer health brands which includes GSKs Voltaren, Sensodyne, and Panadol and PFEs Caltrate, Centrum, and Advil. Investigator Sponsored Studies and Externally Sponsored Collaboration, Access to Quality Healthcare Sanofi Global Health, Contributing to the eradication, elimination and control of some infectious diseases, Serving the needs of patients with non-communicable diseases, Development opportunity: how Sanofi empowers you. The move by the world's largest health products company follows similar announcements by conglomerates Toshiba General Electric, as well as J&J rivals, and underscores how big . "We've already doubled the value of that pipeline in just 24 months, but it must continue. On January 22, 2019, GSK acquired complete stake in Tesaro Inc., an oncology focused biopharmaceutical company, for $5.0 billion (3.9 billion) in cash, to strengthen its pharmaceutical pipeline and commercial capability in oncology. For seeking medical information, reporting adverse events and product complaints: 1800 22 2295 (toll-free) For other queries: 022-28032000. /marketintelligence/en/news-insights/latest-news-headlines/sanofi-bucks-industry-trend-by-pledging-to-keep-stand-alone-consumer-unit-68747982 JUNE 28, 2021. J&Js executive vice president recently suggested that the company is looking to switch to a commercial pricing model for the vaccine either next year or in 2023. GSK, its consumer health spin-off Haleon, and Sanofi could be on the hook for billions of dollars in potential damages over Zantac, a gastrointestinal drug pulled from the market in 2020 after it . Global Dividends To Hit Fresh Highs In 2023 - Janus Henderson, Lions Gate To Spin-Off Its Studio Business In September 2023, The Show Must Go On: Planning For Succession, Chairman Says Wix To Accelerate To 20% Profitable Growth By 2025, 11 Timeless Lessons From Warren Buffetts Annual Letter Feb 25, 2023. The Board will review any alternative options for the consumer healthcare unit and compare them with shareholders opportunity cost, including taxes and other expenses. The combined global sales were about $12.7 billion in 2017. All in all, considering both the current stock price and the possible catalysts to unlock the intrinsic value of the company, Sanofi is a buy. In November 2021, Johnson & Johnson announced it would also split off its consumer . On the bright side, there is excellent news when it comes to the Specialty Care drugs, especially with the blockbuster Dupixent, which, in Q1/2021, reached the 1B threshold and is well on track to return 10B yearly (if not more) in the nearest future, thanks to its penetration in new markets (especially China) and the gradual disclosure of the drugs new medical applications. Credit Suisse London Health Care Conference Hudson highlighted the potential of switches of medicines from prescription to over-the-counter sales, with erectile dysfunction pill Cialis and flu medicine Tamiflu on the horizon. Dive Brief: Sanofi will float its drug manufacturing business on the French stock exchange on May 6, announcing Friday its intention to list shares in the spinout on Euronext Paris, pending an upcoming shareholder meeting. Investigator Sponsored Studies and Externally Sponsored Collaboration, Access to Quality Healthcare Sanofi Global Health, Contributing to the eradication, elimination and control of some infectious diseases, Serving the needs of patients with non-communicable diseases, Development opportunity: how Sanofi empowers you, https://www.sanofi.com/en/investors/contact. Please. Sanofi CEO's strategy blueprint may include consumer health spinoff or merger: Bloomberg | Fierce Pharma . The prescription and pharmaceutical products that make up much of the new J&J company span several therapeutic areas, and include cancer drugs, vaccines and heart medicines. NewCo will be the global leader in OTC products with 7.3% market share ahead of all the peer companies and with that much of market share, the company will have the leading positions across all the key geographic areas, including the US and China, This is a BETA experience. Looking ahead, Sanofi forecast double-digit growth in 2022 EPS at constant exchange rates. The listing will also help GSK increase its focus on its drug pipeline. The New Co. (Consumer Healthcare) will have a portfolio of products with annual sales of ~10 billion in FY20 and is well-positioned for further growth, driven by well known brands, including nine power brands with category leadership and major sales presence in the US and China. 07 MARCH 2023. Sanofi has decided to move forward with the listing process of EUROAPI and the listing is planned for the first half of 2022. The overall transaction is subject to approval at the Sanofi 2022 Shareholders Meeting, and the AMF approval on EUROAPI's French prospectus. Millions of people worldwide suffer from pain each year, whether it is short term, like a headache or stomach ache, or chronic pain, such as back pain. Therefore, investors should approach this investment with a long-term mindset. With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer Whats Next For Keurig Dr Pepper Stock After A Mixed Q4? Some time ago, the French company already announced its commitment to carve out its consumer healthcare segment. Sanofi does not anticipate any impact of this divestiture to its European-based workforce. At CER, the growth was 15.3% and 5.3% respectively. ", latest-news-headlines Jones Day (France) acted as legal advisors to Sanofi. All rights reserved. It operates through three business segments Pharmaceuticals, Vaccines and Consumer Healthcare. We understand allergy sufferers needs and have a number of innovative, effective products in our range to respond effectively to each persons specific allergy needs. Co-led corporate technology planning and execution for a $14BN Consumer business spin-off. However, if the consumer division no longer holds the deep pockets of the combined company, the risk of future consumer product litigation such as the large talc settlement may decrease.. Incorporated in 1999, GlaxoSmithKline plc (GSK), a British company based in United Kingdom. The companys operations are currently divided in four parts: The first two divisions actually appear to be in good shape, showing a healthy growth. The French pharma giant first announced its intentions to spin off the API business in February.The plan, as the company said at the time, would combine Sanofi's API . It planned to form a new Primary Care global business unit that would combine the product portfolios from its existing Diabetes and Cardiovascular (DCV) unit with Established Products. J.P. Morgan & Cie S.A.S. If you have an ad-blocker enabled you may be blocked from proceeding. Josephine Fubara Significant experience within the pharmaceutical industry gained in Learning and Development, Marketing, Medical Management and Sales Force Effectiveness roles. Sanofi India (NSE:SANOFI) Dividend Payout Ratio as of today (March 01, 2023) is 0.00. Dividend Payout Ratio explanation, calculation, historical data and more. The leading site for news and procurement in the pharmaceutical industry. Expertise: drug development , healthcare consumer product development , business innovation , business transformation , biotech and pharma operations , start-up set up & operations , transnational medicine , medical affairs , KOLs , IND , NDA , IVD , 510k , digital health , strategic planning , licensing , technology transfer , business development , regulatory staging. Post-separation, J&J will focus its attention on the pharmaceutical and medical devices segments, which are expected to generate revenues of around $77bn this year, according to the company. STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. Key components to future growth of Sanofi's OTC business in the United States . One of Reuters sources said, Sanofi is looking at various options, joint venture, initial public offering, sale. Media Relations Chief Science Officer for Consumer Healthcareon International Self-Care Day 2022. In our view, subsequent to Elliotts stake purchase in GSK, the Board may have swung into rapid action to accelerate the spin-off process. J&J CEO Alex Gorsky said in a statement that the planned split would allow J&J to deliver new solutions for patients through biopharmaceutical and medical device innovation and technology, and provide the new consumer health company with the agility and flexibility to grow its iconic portfolio of brands and innovate new products. Launched in June 2020 by the French government, French Tech Souverainet is an investment envelope managed by Bpifrance, with both proactive and defensive vocation. 5 Ways to Connect Wireless Headphones to TV. Sanofi is offering its animal health unit Merial in exchange for Boehringer's consumer health, or non-prescription drugs, business plus 4.7 billion euros ($5.2 billion) in cash in exclusive . Business is on track to demerge and list as a new company in mid-2022. 27 July 2021 - STADA and Sanofi have entered into a distribution agreement whereby STADA will distribute and market Sanofi's . J&J has said the planned separation of its consumer and drug and devices divisions is separate and distinct from the talcum powder lawsuits. Morningstar analyst Damien Conover said: The firms timing is surprising, as we dont see any major catalyst for the move. On July 31, 2019, Pfizer Inc. (Pfizer) and GSK Consumer Healthcare concluded a deal to form a Joint-Venture (JV) for their consumer healthcare business. Drawing on more than 150 years of experience in the growing API market, EUROAPI has a network of six production sites, all of which are located in Europe, and delivers around 200 APIs to approximately 530 customers in over 80 countries. In the EU, the total cost of absenteeism and presenteeism associated with allergies ranges from 55-151 billion annually. This, in turn, will contribute significantly to more sustainable healthcare systems. Through this transaction, Sanofi is giving its shareholders the opportunity to take part in the success of a leading player in the API market with strong ambitions to become a global champion on a growing and dynamic market, and due to be listed on the regulated market of Euronext Paris. . > Add the event to my calendar, Cowens 43rd Annual Health Care Conference With Paul Hudson, Chief Executive Officer With this focused attention from management, the consumer-health spin-off enjoyed a relatively smooth path to independence and a successful public listing. acted as financial advisor to Euroapi. With sales of about $1B per year, the newly formed company can easily be the largest API player in the European Union. In line with its Play to Win strategy aiming at simplifying its operations, Sanofi announced in February 2020 its ambition to create a new world leader in APIs to secure significant manufacturing and supply capacities that are critical for patients in Europe and beyond, in a context of increasing shortage of medicines essential to patient care. Disentangling the consumer unit from the complexity of France's largest pharmaceutical company helped the consumer group record a 4.6% year-on-year rise in 2021 sales, CEO Paul Hudson said. The new head of the division, Julie Van Ongevalle, shared that the company will focus on core brands and categories while pursuing first-in-class Rx-to-OTC switches in the ED and flu categories in the U nited States. Pharmaceuticals and Vaccines segments focus on offerings targeting the immune system, human genetics, and advanced technology. 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