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 . 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. 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. However, the French dividend tax for foreign individuals amounts to just 12.8%. There are certain watershed moments in every person's life that propel them to find a community. /marketintelligence/en/news-insights/latest-news-headlines/sanofi-bucks-industry-trend-by-pledging-to-keep-stand-alone-consumer-unit-68747982 Combined, J&J projects the two segments will tally $77 billion in 2021 revenue. "If the GlaxoSmithKline Consumer Health spinoff goes well, we believe it is likely that Sanofi could spin off its consumer health business as well, which is a reasonable extension of the internal separation that is ongoing," HSBC analyst Steve McGarry said in a Nov. 1 note. Morningstar analyst Damien Conover said: The firms timing is surprising, as we dont see any major catalyst for the move. STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. | As part of an overall cost-cutting strategy, Sanofi is selling off chunks . 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 . Josephine Fubara +33 (0)1 53 77 40 00, 46 avenue de la Grande Arme According to a report by Bloomberg, Goldman Sachs and Citi are advising GSK on a potential listing of its spin-off entity. By Anthony King 2022-07-18T12:22:00+01:00. . 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. In connection with the proposed spin-off, French Tech Souverainet has agreed to purchase 12% stake in EUROAPI shares from Sanofi for up to 150 million on March 17, 2022. Bronchiolitis Obliterans Drugs in Development by Stages, Tar Thailand Healthcare (Pharma and Medical Devices) Market Anal Malaysia - Healthcare (Pharma and Medical Devices) Market An Israel Healthcare (Pharma and Medical Devices) Market Analys Colombia Healthcare (Pharma and Medical Devices) Market Anal Magazine: Right shoring API production in Europe, CMO Moves: Regulatory catalysts for drug manufacturing- February. 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 risks and uncertainties also include the uncertainties discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under Risk Factors and Cautionary Statement Regarding Forward-Looking Statements in Sanofis annual report on Form 20-F for the year ended December 31, 2021. Please disable your ad-blocker and refresh. Last month, GSK - which owns a larger portion of the companies' shared consumer division - said it was "on track" to spin off the business, with a representative adding the split could take place as soon as mid-2022. Again, the sooner the better. This acquisition further strengthens STADA as a top-five player in Europes consumer healthcare market, supports our growth acceleration, and is another proof point of STADA as a go-to-partner, commented STADAs CEO, Peter Goldschmidt. Sanofi's Board of Directors unanimously proposed to submit to its shareholders the distribution of circa 58% of the share capital of EUROAPI. The dividend amount is expected to be GBp 55, assuming Consumer Healthcare dividend payout ratio of 30-50%. "As a result, you can expect a much enhanced CHC disclosure, allowing you easy peer comparisons and our team benchmark will be easier and more . Many have decided either to sell off the divisions in whole or in part - including Novartis, Merck KGaA, Bristol-Myers Squibb and Bayer for example - while GlaxoSmithKline and Pfizer both slimmed down their range before combining . Colds are one of the most common illnesses experienced by both adults and children. 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 . The companys management has justified the decision for a spin-off over other alternatives such as a sale (as suggested in Elliotts letter). (Photo by Ben STANSALL / AFP) (Photo by BEN STANSALL/AFP via Getty Images). 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. No communication and no information in respect of the dividend distribution of the shares of EUROAPI (the Shares) may be sent to the public in any jurisdiction where a registration or approval is required. . Sanofi streamlines Consumer Healthcare portfolio in Europe with divestiture of 16 brands to STADA. Esta no es la primera vez que Sanofi proyecta una escisin. Transaction is expected to close on May 6, 2022. 2021 position: 2. Julie Van Ongevalle The consumer arm comprised of million- and billion-dollar brands and offering products such as mouthwash, shampoo, and skincare will form a new publicly traded company in the next 18 to 24 months. I wrote this article myself, and it expresses my own opinions. "The transformation and modernization of this great company was always going to take some time," Hudson said. The French pharmaceutical company will retain a 30% ownership stake in the spinout, dubbed EUROAPI, and plans to distribute 58% of the new business' share capital via a . This situation is changing rapidly and additional impacts may arise of which we are not currently aware and may exacerbate other previously identified risks. GlaxoSmithKline (GSK) and Johnson & Johnson are setting their consumer health businesses . 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. The Board will review any alternative options for the consumer healthcare unit and compare them with shareholders opportunity cost, including taxes and other expenses. 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. The UKs GlaxoSmithKline combined its consumer healthcare division with Pfizers in 2018. Incorporated in 1999, GlaxoSmithKline plc (GSK), a British company based in United Kingdom. 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. How management will address them we dont know of course, but here are some likely solutions they may put in place in a relative short time which will act as strong catalysts for Sanofis business. The new Primary Care unit was to focus on mature markets. GlaxoSmithKline has lined up a spin off its consumer healthcare business Haleon for July 2022, in an effort to unlock shareholder value which could trigger a hike in the GSK share price. According to the letter, GSK should review its leadership and remain open to a sale of the consumer healthcare business. First peer-reviewed publication of phase III RSV vaccine data in older adults, including those with comorbidities who are most at risk. 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 . 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.. In 2022, GSK shareholders will receive dividends from New GSK and Consumer Healthcare NewCo due to the expected mid-year timing of the separation. 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. chc@sanofi.com (Consumer healthcare products) For reporting adverse events: PV.india@sanofi.com. Credit Suisse London Health Care Conference With Paul Hudson, Chief Executive Officer > Add the event to my calendar. 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 . Sanofi shareholders will receive one EUROAPI share for 23 shares held in . Sanofi Pharma; Sanofi Genzyme; Sanofi Pasteur; Our data sharing commitments; Managed Access Programs (MAPs) . The company also stated that a formal process to appoint the Chair and form the Board of the consumer healthcare unit is in progress. We are pleased these products will continue to be available for consumers as we focus on becoming a fully integrated standalone business said Julie Van Ongevalle, Executive Vice-President, Sanofi and Head of Sanofi Consumer Healthcare. In 2018, Pfizer split itself into three business units after failing to sell off its consumer health segment. Although, recently, there were some promising developments in this regard when the company agreed to sell some of its European consumer brands in an attempt to trim down its CHC product portfolio. GlaxoSmithKline plc (GSK) today announced that the new company, to result from the proposed demerger of Consumer Healthcare from GSK in mid-2022, will be called Haleon. Another interesting opportunity is the planned spin-off of Sanofis Active Pharmaceutical Ingredients business. Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. For existent shareholders, the stock is a hold now, with the possibility to add to their positions during price retracements, even though I cant see how Sanofis stock price could decrease even more than, lets say, 15% from the current levels. The separation is expected to complete by mid-2022E. Across the world, 77% of people have used nutritionals in the last 12 months to maintain their general health, provide immune system support or to supplement in areas of vitamin deficiency. 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 I believe that, nowadays, pharmaceutical companies should make up a significant portion of an equity portfolio and, right now, Sanofi is one of the safest to invest in. Today marks a major milestone for EUROAPI, a leading European company dedicated to the development, production and marketing of active pharmaceutical ingredients* (API), as Sanofis Board of Directors unanimously proposed, on March 17th, to submit to its shareholders the distribution of circa 58% of the share capital of EUROAPI. 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