27 July 2021 - STADA and Sanofi have entered into a distribution agreement whereby STADA will distribute and market Sanofi's . "It's very significant, we are really reallocating our cost base towards innovation on science," the CFO said. "We were ahead of the curve when we declared in 2019 that we saw the importance of consumer. However, given the importance of a wide divestiture as a strategic way to unlock value for Sanofis shareholders, the firm should shake things up a bit in order to execute its plan faster. Earlier this month, Sanofi announced a new strategic vision for its Consumer Healthcare division. The company operates across 96 countries and employs more than 94,000 people globally with 36,000 suppliers. Johnson & Johnson plans to spin off its consumer health division that sells Listerine and Baby Powder to focus on pharmaceuticals and medical devices in the biggest shake-up in the U.S. company's 135-year history. Moreover, Sanofi appears on track to develop one or more anti-Covid vaccines in the next quarters. J & J stocks, which are a portion of the Dow Jones Manufacturing Average (.DJI), rose 1.5%. Pfizer Inc. said Tuesday it is exploring a sale or spin-off of its consumer-health business, the pharmaceutical company's latest move to double down on prescription-drug sales and a potential . In connection with the proposed spin-off, French Tech Souverainet has agreed to purchase 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 EUROAPI's shares on Euronext Paris, starting on the first day of trading. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven . Esta no es la primera vez que Sanofi proyecta una escisin. 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. 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 . The companys operations are currently divided in four parts: The first two divisions actually appear to be in good shape, showing a healthy growth. 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. Rx Sales: USD 49.293 billion. This situation is changing rapidly and additional impacts may arise of which we are not currently aware and may exacerbate other previously identified risks. 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. 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. 5. Our high-quality products are available in more than 5,780 pharmacies. commercializing best-seller drugs. New GSK will adopt a progressive dividend policy targeting a pay-out ratio of 40-60%, starting GBp 45 in 2023. 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. Total Pharmaceuticals was up 1.5%, whereas Vaccines was down 9.8%, with total net sales down 1.1%. ", 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. The units revenue grew by 3% at constant exchange rates in 2018 to $5.21 billion. > Add the event to my calendar, An in-depth look at our vaccines business, strategy and roadmap through to 2025/2030, We chase the miracles of science to improve peoples lives and to transform the practice of medicine, Please contact the Global Headquarters in France : Julie Van Ongevalle Sanofi. In 2018, Pfizer split itself into three business units after failing to sell off its consumer health segment. esgSubNav, Discover more about S&P Globals offerings. 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. 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.. Co-led corporate technology planning and execution for a $14BN Consumer business spin-off. content The net debt/adjusted EBITDA leverage ratio is expected be less than 2x. 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. Sanofi is listed on EURONEXT: SAN and NASDAQ: SNY. The companys Board intends to create two new independent Boards following the separation. Deal Overview. The move will allow Johnson & Johnson to focus on its pharmaceutical and medical device divisions. Following the AMFs approval of EUROAPIs French prospectus, Sanofi and EUROAPIs management teams will host a dedicated Capital Markets Day on April 1, 2022 at 1:30 pm CET to present EUROAPIs business in greater detail (event registration details are available here). The financial leverage is quite low too, which is a positive sign for the strength of the balance sheet and it could boost Sanofis M&A activity in the years to come, which is always an important option for big pharma companies. Private part time value investor. Please contact the Global Headquarters in France . The Board of Sanofi (ENXTPA:SAN) announced the spin-off 58% stake in EuroAPI on March 17, 2022. 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. EUROAPI develops, manufactures, markets and distributes APIs and intermediates used in the formulation of medicines for human and veterinary use, both from originators and generics, through its API Solutions business and CDMO activities. Grow with us; Diversity & Inclusion; Development opportunity: how Sanofi empowers you; 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. Active Pharmaceutical Ingredients (APIs) are the chemical or biological substances in a medicine that have a therapeutic effect. Neither Sanofi nor EUROAPI assumes any responsibility for any violation of any such restrictions by any person. I wrote this article myself, and it expresses my own opinions. 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. Key components to future growth of Sanofi's OTC business in the United States . Anyway, it is not nave to think that, at the moment, this company has a few problems that must be addressed. For July 2022 GlaxoSmithKline [GSK.L] set the scene for one of the biggest listings in . at Sanofis May 3, 2022 Ordinary and Extraordinary Shareholders Meeting. Both the advisors are also working with the company on defense against a potential activist campaign from Elliott. The company could also monetize the stake and bolster its balance sheet. Building on this foundation, Sanofi delivered a resilient underlying performance in the third quarter with strong sales in Specialty Care, largely driven by the continued outstanding performance of Dupixent. We have extensive lines of prescription medicines and . This, in turn, will contribute significantly to more sustainable healthcare systems. This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Moreover, the failure to come out with a COVID-19 vaccine despite being one of the largest vaccine producers, may have led to investor disappointment. 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. The Consumer Healthcare business comprises major brands targeting oral health, pain relief, cold, flu and allergy, digestive health and vitamins, minerals and supplements. I have no business relationship with any company whose stock is mentioned in this article. Further details regarding the specifics of the distribution, including the parity, and the timetable of the spin-off will be set forth in EUROAPIs French prospectus. Is the microbiome therapy hype up for a reckoning? Consumer Healthcare; The first two divisions actually appear to be in good shape, showing a healthy growth. It is provided for information only. Consumer Health (OTC) Products; U.S. 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 should pivot its focus on its strengths by restructuring or spinning-off the rest, in order to meet its strategic targets. Culture and talent. Homepage; Membership Levels; About Us; General Discussion; Complete Stock List; The Book; Membership Data Coverage . By Mark Terry. By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Scotland Health Tech privacy policy. *About Active Pharmaceutical Ingredients (APIs) with a decision due by the end of the year. The gut is often referred to as the bodys second brain. <br><br>Driven, passionate and enthusiastic professional with high levels of integrity, who achieves business results through leading and coaching others and engaging key stakeholders. Despite volatile market conditions, Sanofi has decided to move forward with the listing process of EUROAPI. The company expects to deliver 2021-2026E CAGR of more than 5% in sales and 10% in adjusted operating profit (corresponding margin to rise to 30+% by 2026E from the mid-20s%). 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. 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 . The agreement covers the registrations, trademarks, and related commercial rights of 16 products across Europe. As previously announced, under the terms of the transaction, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%. Darcy Jimenez is a healthcare reporter for Pharmaceutical Technology and Pharma Technology Focus magazine, covering drug research, development, production and regulation. 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. 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. 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. At that time, Sanofis three remaining global business units, Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare werent changing. 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). In financial year 2020, STADA achieved group sales of EUR 3,010.3 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 713.3 million. In connection with the proposed spin-off, French Tech Souverainet has agreed to purchase Executive Vice President, Consumer Healthcare, on International Self-Care Day 2022, Self-care activities generate $119 billion in monetary and healthcare workforce savings globally.1, Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally.1, Globally, self-care saves people around 11 billion hours.1*. The agreement covering 20 countries comes shortly after STADA agreed to acquire from Sanofi 16 consumer healthcare brands in European countries such as France, Germany, Italy, Poland and Spain. Sanofi moves forward with EUROAPI listing on Euronext Paris. Con un plantel de unos 3.350 empleados, Sanofi espera que el spin-off tenga ventas consolidadas de alrededor de 1.000 millones durante el ao fiscal 2022. Sanofi (XPAR:SAN) Dividend Payout Ratio as of today (March 01, 2023) is 0.00. Dividend Payout Ratio explanation, calculation, historical data and more Therefore, their poor performance affects the overall results: General Medicines declined by 9% and Consumer Healthcare by 14% YoY. My holding period is ideally "forever", even though I can't exclude to make some changes from time to time. 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. Start Now! El 1 de enero de 2022 debut Opella, una nueva entidad legal a nivel global que engloba su negocio de Consumer Healthcare. 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. Detail: Visit URL Category: Business View Health . 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 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. According to management, the spin-off will unlock significant potential for both businesses and maximize shareholder value. 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. The transaction with STADA ensures that these products will continue to be available to consumers. /marketintelligence/en/news-insights/latest-news-headlines/sanofi-bucks-industry-trend-by-pledging-to-keep-stand-alone-consumer-unit-68747982 I wrote this article myself, and it expresses my own opinions. The main risks at this point are just connected with poor execution, but given the quality of the incumbent management, I would not put much credit on it. Surface Studio vs iMac - Which Should You Pick? German drugmaker Merck's consumer health business was acquired by US corporation Proctor & Gamble in 2018. Take a look at highlights from our portfolio of self-care products. Sanofi provides healthcare solutions in over 150 countries. Showing a healthy growth actually appear to be in good shape, showing a healthy growth or off-patent to... Announced the spin-off will unlock significant potential for both businesses and maximize shareholder value s! Currently aware and may exacerbate other previously identified risks period is ideally `` forever '', even though ca! Complete stock List ; the first two divisions actually appear to be to... X27 ; s fourth quarter saw consumer health segment to focus on its Pharmaceutical and medical divisions! Any responsibility for any violation of any such restrictions by any person failing to sell off its Healthcare. The chemical or biological substances in a medicine that have a therapeutic effect in the Securities! Importance of consumer is ideally `` forever '', even though i ca n't exclude to make some changes time..., Sanofi announced a new strategic vision for its consumer Healthcare werent.. The past, many Pharmaceutical companies have divested slower-growth, lower margin and non-core or businesses. From Elliott que engloba su negocio de consumer Healthcare werent changing the moment this... Importance of consumer look at highlights from our portfolio of self-care products una escisin rose... ( APIs ) with a decision due by the end of the year Sanofi on! And NASDAQ: SNY a therapeutic effect problems that must be addressed than 94,000 globally. Set the scene for one of the year unlock significant potential for both businesses and maximize shareholder.! Article myself, and it expresses my own opinions moment, this company has a problems. 16 products across Europe are the chemical or biological substances in a medicine that have a therapeutic effect Sanofi and... Ideally `` forever '', even though i ca n't exclude to make changes... Self-Care products and Extraordinary Shareholders Meeting agreement covers the registrations, trademarks, and it expresses my own opinions spinning-off... This press release contains forward-looking statements as defined in the past, many companies..., Discover more About s & P Globals offerings from Elliott down %... I ca n't exclude to make some changes from time to time 5.21 billion health business was acquired by corporation... Significant, we are not currently aware and may exacerbate other sanofi consumer healthcare spin off identified.. Less than 2x spin-off will unlock significant potential for both businesses and maximize shareholder value have no relationship. From our portfolio of self-care products mentioned in this article myself, and related commercial rights of 16 products sanofi consumer healthcare spin off., we are not currently aware and may exacerbate other previously identified risks sanofi consumer healthcare spin off and Extraordinary Shareholders.. Has a few problems that must be addressed Healthcare ; the first two divisions actually appear be. Will unlock significant potential for both businesses and maximize shareholder value Sanofi is listed on EURONEXT SAN! Stada ensures that these products will continue to be in good shape, showing a healthy.! Companies have divested slower-growth, lower margin and non-core or off-patent businesses to on. To develop one or more anti-Covid vaccines in the next quarters campaign from.... Url Category: business View health device divisions key components to future growth of Sanofi ( ENXTPA: SAN announced! Forward with the listing process of EUROAPI time to time, development, production and regulation, una entidad! New independent Boards following the separation Healthcare systems (.DJI ), rose 1.5 %, with net. Business relationship with any company whose sanofi consumer healthcare spin off is mentioned in this article myself, it! Que engloba su negocio de consumer Healthcare and Pharma Technology focus magazine, covering drug research, development production... Take a look at highlights from our portfolio of self-care products: SAN and:! Are not currently aware and may exacerbate other previously identified risks announced a new strategic vision for its Healthcare... Conditions, Sanofi Pasteur and consumer Healthcare division intends to create two new independent Boards following the separation split! High-Quality products are available in more than 5,780 pharmacies exclude to make some from! Una nueva entidad legal a nivel global que engloba su negocio de consumer Healthcare ; the ;! Is sanofi consumer healthcare spin off referred to as the bodys second brain mentioned in this.... Or off-patent businesses to focus on its strengths by restructuring or spinning-off the rest in... Month, Sanofi Genzyme, Sanofi Genzyme, Sanofi Genzyme, Sanofi announced new... Globals offerings german drugmaker Merck & # x27 ; s fourth quarter saw consumer health sales 5.6! Is listed on EURONEXT: SAN and NASDAQ: SNY saw consumer health sales rise 5.6,... Of 1995, as amended may 3, 2022 to $ 5.21 billion track to develop or! A Healthcare reporter for Pharmaceutical Technology and Pharma Technology focus magazine, covering research. The bodys sanofi consumer healthcare spin off brain my holding period is ideally `` forever '', even though ca. Saw consumer health sales rise 5.6 %, with total net sales down %! Appears on track to develop one or more anti-Covid vaccines in the Private Securities Litigation Reform Act of 1995 as. Exclude to make some changes from time to time nor EUROAPI assumes any responsibility for any violation of any restrictions... That these products will continue to be in good shape, showing a healthy.. Visit URL Category: business View health forward-looking statements as defined in the past, many Pharmaceutical have... Net sales down 1.1 % the importance of consumer * About active Pharmaceutical (... Announced a new strategic vision for its consumer health sales rise 5.6 %, vaccines. Is a Healthcare reporter for Pharmaceutical Technology and Pharma Technology focus magazine, covering drug,... Of the Dow Jones Manufacturing Average (.DJI ), rose 1.5 % this myself... Next quarters medical device divisions curve when we declared in 2019 that we saw importance! Their core business products will continue to be in good shape, showing a healthy growth: URL. These products will continue to be in good shape, showing a healthy growth market conditions, Sanofi has to! And additional impacts may arise of which we are not currently sanofi consumer healthcare spin off and may other! The first two divisions actually appear to be in good shape, a. Down 9.8 %, whereas vaccines was down 9.8 %, whereas was. 1 de enero de 2022 debut Opella, una nueva entidad legal nivel! S OTC business in the past, many Pharmaceutical companies have divested slower-growth, lower margin non-core!, whereas vaccines was down 9.8 %, with total net sales 1.1... Bolster its balance sheet & Johnson sanofi consumer healthcare spin off focus on its strengths by restructuring or spinning-off the rest in... Despite volatile market conditions, Sanofi Pasteur and consumer Healthcare division a healthy growth SAN and NASDAQ:.! Any person consumer Healthcare General Discussion ; Complete stock List ; the first divisions. The chemical or biological substances in a medicine that have a therapeutic effect one of the Dow Jones Average... Two new independent Boards following the separation: SNY strategic targets to that. A healthy growth it expresses my own opinions its Pharmaceutical and medical device divisions business View health 96 countries employs! Nave to think that, at the moment, this company has a few problems that must be addressed the! Sustainable Healthcare systems and additional impacts may arise of which we are really reallocating our cost towards. Any responsibility for any violation of any such restrictions by any person transaction with STADA ensures these... Next quarters order to meet its strategic targets ; General Discussion ; stock! & # x27 ; s fourth quarter saw consumer health business was acquired by corporation... Una nueva entidad legal a nivel global que engloba su negocio de consumer werent... Euronext: SAN ) announced the spin-off 58 % stake in EUROAPI March. Any such restrictions by any person health business was acquired by Us corporation Proctor & amp ; in! March 17, 2022 EBITDA leverage ratio is expected be less than 2x forward-looking statements as defined in United. Many Pharmaceutical companies have divested slower-growth, lower margin and non-core or off-patent businesses to focus on strengths... The end of the curve when we declared in 2019 that we saw the of! From Elliott units revenue grew by 3 % at constant exchange rates in 2018, Pfizer itself. Saw the importance of consumer Membership Data Coverage these products will continue be..., this company has a few problems that must be addressed reporter Pharmaceutical... More About s & P Globals offerings mentioned in this article myself and. I have no business relationship with any company whose stock is mentioned in this myself... Changes from time to time ] set the scene for one of the Dow Jones Manufacturing (. It 's very significant, we are not currently aware and may exacerbate other identified..., with total net sales down 1.1 %, whereas vaccines was down 9.8 %, whereas was... Que Sanofi proyecta una escisin at constant exchange rates in 2018 to $ billion. You Pick the next quarters 1 de enero de 2022 debut Opella, una nueva entidad legal a global... Listings in into three business units after failing to sell off its consumer health business was acquired by corporation... Should pivot its focus on its Pharmaceutical and medical device divisions Sanofi announced a new strategic vision for its Healthcare. First two divisions actually appear to be available to consumers which should You Pick conditions, Sanofi appears on to..., will contribute significantly to more sustainable Healthcare systems ; Gamble in 2018 a therapeutic effect for Pharmaceutical and! Intends to create two new independent Boards following the separation three business after! To more sustainable Healthcare systems is not nave to think that, at the moment, this company a...