Sanofi Seeks Buyer for Its Consumer Health Products Division

French pharmaceutical company Sanofi is reportedly looking for a buyer for its consumer healthcare division, which could be worth around 20 billion euros. The company has asked interested parties to submit preliminary offers by mid-July, including US private equity firm Advent International, French firm PAI Partners, Blackstone, Clayton Dubilier&Rice, CVC Capital Partners and TPG.

The Swedish investment group EQT AB would have withdrawn from the acquisition, as sources familiar with the matter have revealed to Bloomberg. Of these, according to information, PAI Partners would intend to assert its status as a French group to carry out the operation in the face of growing concern in Paris over the entry of foreign firms into its national champions. However, PAI may need partners given the size of the transaction.

In any case, Sanofi would retain a significant minority stake after spinning off the consumer division, something that the laboratory announced it would do last October 2023, which would reduce the capital needed from potential buyers .

The deliberations would be ongoing, although they would not have to result in an agreement, the sources have indicated. For his part, a Sanofi spokesperson maintained that the business separation process was progressing and that the multinational was open to all options.

Sanofi 2023 results

Sanofi closed 2023 with an attributable net profit of 5.4 billion euros, which was 35.5% less than the 8,371 million euros obtained the previous year . Afterwards, net turnover was 43.07 billion euros, 0.2% more. To this amount we should add 3.37 billion euros from various sources.

By business segments, the specialized medicines division (neurology, immunology, oncology and rare diseases) had a turnover of 18.04 billion euros, this is 9.6% more than twelve months before , while the general medicines branch stood at 12.37 billion euros, 12.4% less.

The vaccines division experienced an increase of 3.4%, to 7.47 billion euros, while the general consumer products and non-prescription medicines division fell 0.1%, to 5.18 billion euros.

Sanofi buys 4.9% of Novavax for 65 million euros

In May, Sanofi has acquired 4.9% of the shares of the American company Novavax for seventy million dollars (65 million euros), a price that doubles the company’s valuation to around 1.4 billion dollars (1.301 billion euros).

Sanofi’s investment comes in the context of the co-exclusive licensing agreement reached between the two laboratories for the joint marketing of vaccines for Covid-19 in combination with flu vaccines, for which the French company will pay up to 1.2 billion dollars (1.115 billion euros).

Specifically, Sanofi will make, in favor of the American laboratory, an initial payment of $500 million (465 million euros), in addition to up to another $700 million (650 million euros) depending on development, regulation and milestones launch.

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