Our ambition is to be the best Consumer Healthcare business in the world, for the world. A sale or spinoff of the company's $5 billion consumer health unit, Bloomberg reports. The company also stated that a formal process to appoint the Chair and form the Board of the consumer healthcare unit is in progress. STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. Please disable your ad-blocker and refresh. The approach mirrors Novartis' own move to carve out its Sandoz generics unit which private equity groups like EQT AB (publ), Blackstone Inc. and The Carlyle Group Inc. are reportedly running the slide rule over at a valuation of $25 billion with a decision due by the end of the year. (2021). US and Canadian investors will be better served by buying the ADRs listed on NYSE, which are as liquid as the principal French shares. 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. 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 . 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. The deal increased Sanofis consumer healthcare market share to about 4.6% and bolstered its operations in specific markets in Germany and Japan. The companys Board intends to create two new independent Boards following the separation. This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. "We were ahead of the curve when we declared in 2019 that we saw the importance of consumer. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. At CER, the growth was 15.3% and 5.3% respectively. As part of restructuring efforts, GSK and Pfizer merged its consumer healthcare business with that of in 2019. Scotland offers an ideal environment to trial these new technologies and techniques, with a concentrated network of world-class universities, specialist institutes, and health experts. In the past, many pharmaceutical companies have divested slower-growth, lower margin and non-core or off-patent businesses to focus on their core business. The company focuses on a three-pillar strategy consisting of generics, specialty pharma and non-prescription consumer healthcare products. Johnson & Johnson, Bayer and Sanofi, according to Reuters, are close competitors in the consumer healthcare market. GSK is a research-based healthcare company, focused on developing, manufacturing, and marketing of human healthcare products. The separation is expected to complete by mid-2022E. Sanofi is a long-term player. (Just Now) WebOn 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 company. Real-time Euronext Paris 75017 Paris FRANCE Paul Hudson, Sanofis chief executive officer, who took over the reins of the company on September 1, is expected to meet with investors in Cambridge, Massachusetts on December 10. Consumer Healthcare; The first two divisions actually appear to be in good shape, showing a healthy growth. with a decision due by the end of the year. 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. 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 . 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. As a result, French Tech Souverainet will become a long-term reference shareholder of EUROAPI and will be represented by two non-executive members on EUROAPI's Board of Directors, including Benjamin Paternot and another member to be determined. Precision medicine has the potential to radically change the way health services are delivered, combining medical expertise with the latest technology to provide bespoke treatments for individual patients. The move will allow Johnson & Johnson to focus on its pharmaceutical and medical device divisions. Although Sanofis management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Sanofi, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. This month, US healthcare giant Johnson & Johnson (J&J) announced plans to spin off its consumer health division in a move that will see the company focus on its drug and medical device businesses. 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. All in all, even though the stagnant divisions are at the moment predominant, that story is changing. Final note: I am long Sanofi directly through its shares listed in Europe. Earlier this month, Sanofi announced a new strategic vision for its Consumer Healthcare division. However, the French dividend tax for foreign individuals amounts to just 12.8%. 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. Merck sold its consumer business to Bayer AG in 2014 for $14.2 billion. Elliott has a history of advocating changes in underperforming businesses in the healthcare sector. In addition to the previously proposed 3.33 cash dividend per Sanofi share, this additional extraordinary dividend, exclusively in kind, is subject to shareholders approval at Sanofi's May 3, 2022 Ordinary and Extraordinary Shareholders' Meeting. JUNE 28, 2021. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. Globally, self-care saves people around 11 billion hours. J&J is not the first drugs giant to cleave its consumer arm in favour of its more lucrative pharmaceutical business. Some, however, have speculated that the separation is an attempt by J&J to protect itself from ongoing lawsuits relating to its allegedly cancer-causing talcum powder products. The company will be able to rely on the expertise of around 3,350 employees and expects to achieve consolidated sales of around EUR 1 billion in the year ending December 31, 2022. Moreover, the deal was in line with GSKs plan to demerge the JV from the company and to list the GSK Consumer Healthcare business on the UK equity market. With Paul Hudson, Chief Executive Officer Sanofi shareholders will receive one EUROAPI share for 23 shares held in the parent company, and Sanofi plans to keep a 30% stake in EUROAPI. McGarry cited the potential for this spinoff, combined with a spinout of Sanofi's pharmaceutical ingredients business that Hudson said is expected "in just a few months," as reasons for upgrading stock in the Paris-based drugmaker to a "buy.". Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally. By Anthony King 2022-07-18T12:22:00+01:00. . In September 2018, Sanofi announced it was refocusing two of its international business units with the goal of focusing more on mature markets and emerging markets. It was the world's second largest manufacturer of APIs (including both small and large molecules such as peptides and oligonucleotides) in 2021 and number seven in the global CDMO (Contract Development and Manufacturing Organization) market in 20201. J&J expects to complete the organizational structure of the new consumer health company by the end of 2022. Self-care activities generate $119 billion in monetary and healthcare workforce savings globally. As a part of deal, GSK held majority controlling equity interest of 68% in the JV and the rest 32% equity interest was owned by Pfizer. I wrote this article myself, and it expresses my own opinions. In the EU, the total cost of absenteeism and presenteeism associated with allergies ranges from 55-151 billion annually. ALTUVIIIO approved by the U.S. FDA: this positive event triggers impairment reversal, positively impacting 2022 IFRS net income; no change on business net income (non-IFRS), Press release: New Phase 3 data presented at WORLDSymposium reinforce Nexviazyme (avalglucosidase alfa) as potential new standard of care for all people living with late-onset Pompe disease, Media Update: New data for tolebrutinib, Sanofis investigational brain-penetrant BTK inhibitor, showed significant effect on CNS immune mediators that driveMS disease progression, 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, Credit Suisse London Health Care Conference, With Paul Hudson, Chief Executive Officer, Cowens 43rd Annual Health Care Conference, With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer. Sanofi moves forward with EUROAPI listing on Euronext Paris. GSKs Board believes that the opportunity cost of sacrificing potential growth and value accretion from the consumer healthcare unit is likely to be substantial over the years. I am not receiving compensation for it (other than from Seeking Alpha). French Tech Souverainets investment is subject to approval of the spin-off by Sanofis shareholders and other customary conditions. Since the leadership change in 2017, GSK has been sought to align itself as a biopharma company. 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. Billion consumer health unit, Bloomberg reports in underperforming businesses in the future, enable. 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