Forward-looking statements are generally identified by the words expects, anticipates, believes, intends, estimates, plans and similar expressions. 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. Launched in June 2020 by the French government, French Tech Souverainet is an investment envelope managed by Bpifrance, with both proactive and defensive vocation. 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. JUNE 28, 2021. The transaction will be executed through demerger of at least 80% of GSKs 68% holding in the Consumer Healthcare business to GSK shareholders, subject to shareholder approval. At that time, Sanofis three remaining global business units, Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare werent changing. | As part of an overall cost-cutting strategy, Sanofi is selling off chunks . However, net sales took a dive in Q1, declining by roughly 4.6% YoY (reported). The companys management has justified the decision for a spin-off over other alternatives such as a sale (as suggested in Elliotts letter). 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 . In addition to its highly diversified customer base of approximately 530 customers, EUROAPI benefits from a strong and long-term customer relationship with Sanofi, which represented nearly half of EUROAPIs revenues in 2021. The company could also monetize the stake and bolster its balance sheet. Sanofi Pharma; Sanofi Genzyme; Sanofi Pasteur; Our data sharing commitments; Managed Access Programs (MAPs) . As an independent stand-alone company, EUROAPI will be able to fully unlock its growth potential, offering the best alignment of strategy, value creation and financial objectives for all of Sanofis shareholders. Moreover, the remaining 20% stake in the spun-off unit post deal completion offers GSK with the opportunity to benefit from strong performance at the spun-off unit. Disclosure: I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. The reality in business is that some things are more important than others and we have to understand where we must win.. 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. 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. Bad Vilbel, Germany. 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. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven . 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. As of 31 December 2020, STADA employed 12,301 people worldwide. 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. 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. Health. On the other hand, the remaining part is progressing nicely. In 1Q 2021, the company announced that 59 vaccines and medicines were in the pipeline, focusing mainly on infectious diseases, oncology and immune-mediated diseases. It is provided for information only. The pharmacological and medical device division maintains J & J's name, and the corporation expects a tax-exempt spin-off. 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. 12% in EUROAPI shares from Sanofi for up to 150 million, with the acquisition price to be determined based upon the thirty day volume weighted average trading price (VWAP) of EUROAPIs shares on Euronext Paris, starting on the first day of trading. 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 transformation and modernization of this great company was always going to take some time," Hudson said. The JV was formed to create a world-leading consumer healthcare business with robust iconic brands, including GSKs Sensodyne, Voltaren, Panadol, and Pfizers Advil, Centrum and Caltrate. 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. We offer a broad range of digestive solutions that work on relieving heartburn, improving liver performance and indigestion and managing diarrhea and constipation. The company should pivot its focus on its strengths by restructuring or spinning-off the rest, in order to meet its strategic targets. The gut is often referred to as the bodys second brain. investor.relations@sanofi.com, France:+ 33 1 53 77 45 45 |U.S.:+ 1 908 981 5560. Private part time value investor. Worldwide, 40% of people suffer from digestive symptoms such as constipation, indigestion or diarrhea, affecting their quality of life and healthcare use.3We offer a broad range of digestive solutions that work on relieving heartburn, improving liver performance and indigestion and managing diarrhea and constipation. Josephine Fubara Sanofi assumes no responsibility for the information presented on this website. Sanofi is a diversified global healthcare leader, focused on developing products that meet the health needs of people. 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 . 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. With this focused attention from management, the consumer-health spin-off enjoyed a relatively smooth path to independence and a successful public listing. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I wrote this article myself, and it expresses my own opinions. /marketintelligence/en/news-insights/latest-news-headlines/sanofi-bucks-industry-trend-by-pledging-to-keep-stand-alone-consumer-unit-68747982 In November 2021, Johnson & Johnson announced it would also split off its consumer . 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. Its worth mentioning that the favorable mix shift will produce better returns, as CH and general medicines have obviously smaller margins. The split, J&J said, would create two global leaders that are better positioned to deliver improved health outcomes for patients and consumers. Sanofi Offloads 16 Consumer Health Brands Health 9 hours ago Web As part of its quest to streamline consumer healthcareand eventually spin off the unit as a standalone businessSanofi will offload 16 consumer . 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. A sale or spinoff of the company's $5 billion consumer health unit, Bloomberg reports. acted as financial advisor to Euroapi. Published: Nov 21, 2019 with a decision due by the end of the year. Colds are one of the most common illnesses experienced by both adults and children. Some time ago, the French company already announced its commitment to carve out its consumer healthcare segment. The leading site for news and procurement in the pharmaceutical industry. Sanofi's CDMO spinoff set for next month as new group targets 2022 revenues of 1B. 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. Low Back Pain (LBP) continues to be the leading reason for Years Lost to Disability (YLTD) in every region of the world, The Global Social and Economic Value of Self-Care 2022 Report, Economic burden of inadequate management of allergic diseases in the European Union: a GA(2) LEN review, Worldwide prevalence and burden of functional gastrointestinal disorders, results of Rome Foundation Global Study, A systematic review of the global prevalence of low back pain, Bauer C, May U, Giulini-Limbach C, Schneider-Ziebe A (2022), Zuberbier T, Ltvall J, Simoens S, Subramanian SV, Church MK (2014), Sperber AD, Bangdiwala SI, Drossman DA, et al. Again, the sooner the better. 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. 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. 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. 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. esgSubNav, Discover more about S&P Globals offerings. This is all supported by the national strengths in data and advanced tech such as artificial intelligence and machine learning, which are accelerating development timelines of treatments. She is particularly interested in stories about AI, antibiotic resistance, and global health equality. The one-shot cervical cancer vaccine paradigm. Consumer Healthcare; Vaccines careers; Student / Graduate / Young Professionals; Discover more possibilities; Grow with us. We leverage the best in science, together with our world-class pharmaceutical quality standards, to deliver consumer-driven, innovative medicines and products for allergy; pain; digestive wellness; cough, cold and flu; and physical and mental wellness. For medical information: medinfo.india@sanofi.com , customercare. "It's very significant, we are really reallocating our cost base towards innovation on science," the CFO said. Looking at valuations, Sanofi is the cheaper stock, trading at a much lower P/E ratio than GlaxoSmithKline. 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. Final note: I am long Sanofi directly through its shares listed in Europe. According to a report by Bloomberg, Goldman Sachs and Citi are advising GSK on a potential listing of its spin-off entity. The largest part of Sanofis business is not growing. Compared to its peers, the French company appears to be inexpensive. . 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. While GlaxoSmithKline boasts a higher dividend yield at 5.4% than Sanofi's 3.6%, Sanofi . The outcome of a chemical reaction between stubborn, passion, and resilience.<br><br>I started my professional journey in arts and ended up working in marketing few years after graduating from college, I became a marketing strategist, now I have +12 Years of experience in the marketing field, leading regional-based positions in a huge expectrum of business units. Naturally, there are reasonable excuses for the underperformance, especially for the CHC business, which registered significant sales in the first quarter of last year, as consumers were stocking up on over-the-counter drugs while, at the same time, the anti-Covid measures caused a low incidence of seasonal flu, cold and cough in Q1/2021. The deal increased Sanofis consumer healthcare market share to about 4.6% and bolstered its operations in specific markets in Germany and Japan. 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 . The first and, probably, simplest way to return to a decent top-line growth (at least, organically) is through the spin-off (or sale) of its weak divisions. 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 . Julie Van Ongevalle 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. 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 . 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 . The agreement covers the registrations, trademarks, and related commercial rights of 16 products across Europe. If you wish to continue to this external website, click Proceed. ", Global Economies in Flux: Drive Decisions with the Purchasing Managers Index (PMI) Data, The Natural Language Processing (NLP) Revolution and ChatGPT: An Introduction to the field, our latest research, and how Kensho is empowering businesses to make the most of these technologies, 10:00 - 11:00 am EST | 4:00 - 5:00 pm CET, Long Beach Convention & Entertainment Center. Sanofi will look to offload around 150 OTC brands as part of a radical overhaul of its Consumer Healthcare operation. J & J stocks, which are a portion of the Dow Jones Manufacturing Average (.DJI), rose 1.5%. It will lead to the creation of a consumer health giant with a market share of 7.3 percent, well ahead of its nearest rivals Johnson & Johnson, Bayer and Sanofi, all on around 4 percent. The combined global sales were about $12.7 billion in 2017. I wrote this article myself, and it expresses my own opinions. We believe the separation could be a trigger for driving improved share price appreciation, given that the stock has underperformed peers historically. 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. Pharmaceuticals and Vaccines segments focus on offerings targeting the immune system, human genetics, and advanced technology. All rights reserved. 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. 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 . 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. 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. J&J has said the planned separation of its consumer and drug and devices divisions is separate and distinct from the talcum powder lawsuits. I have no business relationship with any company whose stock is mentioned in this article. Neither Sanofi nor EUROAPI assumes any responsibility for any violation of any such restrictions by any person. Post separation, New GSK will focus across four core therapeutic areas (TAs): Infectious Diseases, HIV, Oncology and Immunology/Respiratory. . 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