Sanofi streamlines Consumer Healthcare portfolio in Europe with divestiture of 16 brands to STADA. Cowen's 43rd Annual Health Care Conference With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer > Add the event to my calendar Just months later, the company penned a deal with fellow pharma leader GlaxoSmithKline (GSK) to combine their two consumer health companies into one joint entity with an estimated 9.8bn in annual sales. At its third-quarter financial report on October 31, Sanofi reported total net sales of 9.499 billion for the quarter, with Consumer Healthcare reporting 1.136 billion, up 0.4%. Health. You may opt-out by. GSK is a research-based healthcare company, focused on developing, manufacturing, and marketing of human healthcare products. Sanofi said on Tuesday it hopes to take over the consumer health care unit of German peer Boehringer Ingelheim via an asset swap, making the French pharmaceutical giant the sector's world leader. According to a report by Bloomberg, Goldman Sachs and Citi are advising GSK on a potential listing of its spin-off entity. Our team, across some 100 countries, is dedicated to transforming the practice of medicine by working to turn the impossible into the possible. Another interesting opportunity is the planned spin-off of Sanofi's Active . This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in France, the United Kingdom, the United States of America, Canada, Australia, Japan or any other jurisdiction. 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. Johnson & Johnson, Bayer and Sanofi, according to Reuters, are close competitors in the consumer healthcare market. Our brands are trusted across the world, and some have been on the market for over 50 years. Self-care can enhance wellbeing, prevent disease, curb illness, and restore health. While GlaxoSmithKline boasts a higher dividend yield at 5.4% than Sanofi's 3.6%, Sanofi . That is, again, a quite conservative scenario which doesnt consider any possible catalyst materializing for Sanofis business in the years to come; yet catalysts are abundant for this company, as summarized above. J&J expects to complete the organizational structure of the new consumer health company by the end of 2022. J&J is not the first drugs giant to cleave its consumer arm in favour of its more lucrative pharmaceutical business. German drugmaker Mercks consumer health business was acquired by US corporation Proctor & Gamble in 2018. As part of Sanofis ongoing efforts to reduce the complexity of its Consumer Healthcare portfolio and accelerate its growth trajectory, the company has signed an agreement with STADA for the divestiture of 16 Consumer Healthcare products commercialized in Europe. Sanofi assumes no responsibility for the information presented on this website. In the last five years, through the Biotechnology and Biological Sciences Research Council and Medical Research Council, 13% (450m) of all UK funding has gone to universities in Scotland. Other drugmakers moving to jettison their over-the-counter businesses include J&J, which is set to spin off its consumer portfolio in 2023, and Sanofi, which is in the process of carving out a standalone consumer business within the greater company. Low Back Pain (LBP) continues to be the leading reason for Years Lost to Disability (YLTD) in every region of the world,4 affecting around 1 in 10 people. In November 2021, Johnson & Johnson announced it would also split off its consumer . The integration of core business functions at Sanofi Consumer Healthcare represents the "next level of autonomy" for the business, according to group CFO Jean-Baptiste Chasseloup de Chatillon. Despite volatile market conditions, Sanofi has decided to move forward with the listing process of EUROAPI. Disclosure: I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. GSK cited the opportunity cost from the immense profit and cash generation potential of the consumer healthcare unit as well as higher expenses in the form of taxes in case of a sale as compelling reasons for the spin-off. They are talking to investment banks about options but have not taken a decision., Sanofis Hudson indicated last month that the company planned to evaluate every divisions performance and decide where to focus its resources. The company was formed by a merger between Glaxo Wellcome plc and SmithKline Beecham plc. By Mark Terry. Merck & Co's strategy to spin off its older drugs and biosimilars into a new stand-alone business will be closely watched by other pharma companies considering the same move, analysts have said. Jones Day (France) acted as legal advisors to Sanofi. 14 February 2023. Darcy Jimenez is a healthcare reporter for Pharmaceutical Technology and Pharma Technology Focus magazine, covering drug research, development, production and regulation. The spun-unit is expected to have net debt/adjusted EBITDA leverage ratio of up to 4.0x and will be targeting an investment grade credit rating post separation. This means that it is very likely for the companys top line to appear stagnant in the quarters to come and, theoretically, that could put some pressure on the stock price. The separation is expected to complete by mid-2022E. As its shown below, in fact, sales mix is steadily improving over time. All in all, even though the stagnant divisions are at the moment predominant, that story is changing. When Sanofi unveiled plans to spin off its European active pharmaceutical ingredient (API) unit back in early . The combined global sales were about $12.7 billion in 2017. We believe the separation could be a trigger for driving improved share price appreciation, given that the stock has underperformed peers historically. All rights reserved. Sanofi is a long-term player. Notice to holders of American Depositary Receipts (ADRs) Welcome to Sanofi Consumer Healthcare. The French drugmaker spent more than 12 billion on acquisitions in the last two years to bolster the group's pipeline of early medicines, said CFO Jean-Baptiste de Chatillon, who added that the company will ramp up R&D spending by around half a million euros in 2022. 5. An initial public offering (IPO) of the unit, which could be worth around $30 billion according to two sources familiar with the matter, is also on the cards. It is provided for information only. Please disable your ad-blocker and refresh. "We don't worry about what the other companies do, we worry about what we're doing and we're pleased with what's going on in our consumer business.". 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. Post separation, New GSK will focus across four core therapeutic areas (TAs): Infectious Diseases, HIV, Oncology and Immunology/Respiratory. Start Now! Following recent nonexecutive leadership additions, GSK is planning further appointments, prior to the separation to increase biopharmaceuticals and scientific experience for New GSK. Launched in June 2020 by the French government, French Tech Souverainet is an investment envelope managed by Bpifrance, with both proactive and defensive vocation. 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. 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. The new head of the business Julie Van Ongevalle has unveiled a wide-ranging turnaround plan with the goal of transforming Sanofi into the OTC market leader. The listing will also help GSK increase its focus on its drug pipeline. without the spin-off) from 2022, following anticipated lower growth in 2021 due to currency weaknesses and . Any material effect of COVID-19 or recent armed conflicts on any of the foregoing could also adversely impact us. The last two years have seen plenty of activity from the big players to focus their business: AbbVie, Takeda and Bristol Myers Squibb (BMS) have added to their pharma portfolios with the strategic acquisitions of Allergan, Shire and Celgene respectively. The largest part of Sanofis business is not growing. The net debt/adjusted EBITDA leverage ratio is expected be less than 2x. In connection with the proposed spin-off, French Tech Souverainet has agreed to purchase Rx Sales: USD 49.293 billion. From a neighborhood or school community to a network with a shared bond of life-changing experiences like a medical diagnosis, being part of a community can foster feelings of connection. Nicolas Obrist|+ 33 6 77 21 27 55 |nicolas.obrist@sanofi.com, Investor Relations If you wish to continue to this external website, click Proceed. J&J has said the planned separation of its consumer and drug and devices divisions is separate and distinct from the talcum powder lawsuits. Sanofi is lining up to spin off its active pharmaceutical ingredients division that will include a listing as a public company, Reuters reported, citing unnamed sources.. Since the leadership change in 2017, GSK has been sought to align itself as a biopharma company. 2021 position: 10. Boehringer paid Sanofi 4.7 billion in cash. Roche. Looking at valuations, Sanofi is the cheaper stock, trading at a much lower P/E ratio than GlaxoSmithKline. Sanofi S.A. is a French multinational pharmaceutical and healthcare company headquartered in Paris, France.Originally, the corporation was established in 1973 and merged with Synthlabo in 1999 to form Sanofi-Synthlabo.In 2004, Sanofi-Synthlabo merged with Aventis and renamed to Sanofi-Aventis, which were each the product of several previous mergers. STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. Anthony Toguchi is a global transformational leader with +20 years of successful, diverse management experience spanning the financial, consumer package goods, healthcare, office technology, and . Is this happening to you frequently? The firm created a new subsidiary to deal with the talc-related litigation, before filing for the new companys bankruptcy in an attempt to block claims for damages from those who say J&Js baby powder damaged their health. Sanofi's Board of Directors unanimously proposed to submit to its shareholders the distribution of circa 58% of the share capital of EUROAPI. The consensus recommendation is Strong Buy, based on a survey of 18 . According to news reports, in April 2021, activist investment firm Elliott Management Corp. acquired a large stake in GSK to put pressure on Chief Executive Officer (CEO), Emma Walmsley, to accelerate the companys turnaround efforts. Our mission is to Serve Healthier, Fuller Lives by offering moments of relief to our Patients & Consumers in our key platforms, including Allergy, Physical & Mental Wellness, Pain . Sanofi moves forward with EUROAPI listing on Euronext Paris. 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. In October, J&J sparked controversy by using a bankruptcy manoeuvre to avoid paying out for the tens of thousands of claims made against it. I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. On June 23, 2021, GlaxoSmithKline plc (NYSE: GSK, $40.45, Market Cap: $101.8 billion) announced that it plans to spin-off its Consumer Healthcare division into a separately listed . 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. Opinions expressed by Forbes Contributors are their own. In 2021, Sanofi announced several critical steps in this journey with the unveiling of the creation of EUROAPI and the appointment of Karl Rotthier as its CEO in January, the appointment of Viviane Monges as Chair of the Supervisory Board in July and the finalization of the carve-out in December 2021. The patent stays until 2035 to 2039 (oral form). Consumer Health (OTC) Products; U.S. 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. About French Tech Souverainet The earnings report showed what GSK called "strong sales" in its biopharma and consumer healthcare operations, to the tune of 7.1 billion British pounds (about $8.9 billion) and 2.6 billion . Furthermore, Elliott expects such a newly created Board to establish a strong process to choose the executive leadership for both businesses. Globally, self-care saves people around 11 billion hours. As part of Sanofi's ongoing efforts to reduce the complexity of its Consumer Healthcare portfolio and accelerate its growth trajectory, the company has signed an agreement with STADA for the divestiture of 16 Consumer Healthcare products commercialized in Europe. Merck sold its consumer business to Bayer AG in 2014 for $14.2 billion. 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. However, it looks like that les grandes manoeuvres, aimed at the realization of this project, will proceed at a slow speed. An IPO could come as soon as 2022. Sanofi assumes no responsibility for the information presented on this website. Sanofi Forward-Looking Statements Brentford, U.K.-based GSK, meanwhile, will spin out its consumer unit by mid-year, after turning down three bids from consumer goods giant Unilever PLC reaching 50 billion, which the drugmaker considered to undervalue the business. J & J stocks, which are a portion of the Dow Jones Manufacturing Average (.DJI), rose 1.5%. -. 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. Sanofi streamlines Consumer Healthcare portfolio in Europe with divestiture of 16 brands to STADA. Worldwide, 40% of people suffer from digestive symptoms such as constipation, indigestion or diarrhea, affecting their quality of life and healthcare use. Unveiling his strategy after joining the drugmaker from Novartis AG in 2019, Hudson said Sanofi's focus would be on vaccines, research and development and Dupixent a psoriasis medicine that the CEO projects will exceed annual peak sales of 10 billion while exiting traditional areas of expertise like cardiovascular and diabetes research. Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally. Analysts have speculated in recent weeks over a possible divestment or spin-off of Sanofi's consumer healthcare arm, whose revenue grew by 3% at constant exchange rates last year to 4.7 billion . 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. 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. Landmark New England Journal of Medicine publication reinforces potential of GSK's respiratory syncytial virus older adult vaccine candidate. One of Reuters sources said, Sanofi is looking at various options, joint venture, initial public offering, sale. Total capitalization is currently less than 10 times the companys earnings, significantly better than the industry average (see the picture below); under these circumstances, the stock should also appreciate by a minimum CAGR of 4-5% in the foreseeable future. If you wish to continue to this external website, click Proceed. About STADA Arzneimittel AG Take a look at highlights from our portfolio of self-care products. 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. Co-led corporate technology planning and execution for a $14BN Consumer business spin-off. The company, which is facing some notable patent expirations in the coming few years, has announced a plan to spin off its consumer healthcare business in 2023. It followed a historic slump in over-the-counter sales for cough and cold medicines across the industry in 2020 as a result of social distancing and other pandemic-related regulations. However, the French dividend tax for foreign individuals amounts to just 12.8%. For July 2022 GlaxoSmithKline [GSK.L] set the scene for one of the biggest listings in . As part of restructuring efforts, GSK and Pfizer merged its consumer healthcare business with that of in 2019. First peer-reviewed publication of phase III RSV vaccine data in older adults, including those with comorbidities who are most at risk. FRANKFURT/PARIS (Reuters) - Sanofi <SASY.PA> is considering a joint venture or outright sale among options for its consumer healthcare unit, sources told Reuters, as the French drugmaker prepares to present a new strategic plan next month. 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. We offer a broad range of digestive solutions that work on relieving heartburn, improving liver performance and indigestion and managing diarrhea and constipation. Published: Nov 21, 2019 At the time, Hudson stated, Since joining Sanofi only two months ago, I am increasingly excited about the strength of our businesses, our ability to develop transformative medicines and the diverse talent of our teams across the organization. Total Pharmaceuticals reported 6.434 billion, Sanofi Pasteur (Vaccines) reported 1.929 billion. Notice The one-shot cervical cancer vaccine paradigm. GlaxoSmithKline and Pfizer plan to spin off their joint consumer health business next year, and German drugmaker Merck KGaA sold its consumer health division to Procter & Gamble Co in 2018. 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