Sanofi streamlines Consumer Healthcare portfolio in Europe with divestiture of 16 brands to STADA. Brentford, U.K.-based GSK, meanwhile, will spin out its consumer unit by mid-year, after turning down three bids from consumer goods giant Unilever PLC reaching 50 billion, which the drugmaker considered to undervalue the business. 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. The company's consumer healthcare unit, a maker of over-the-counter drugs (OTC), lifted sales by 9.1% to 1.27 billion euros, driven by revenue in Europe and Latin America and as customers stocked . Notice 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%). Please. 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 part of Sanofis 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. 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. 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.. The move has been in the works for several months. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven by the cough and cold, pain care, and digestive wellness categories. It already has a first pocket of 150M to support French technology companies developing future technologies of a sovereign nature, which may fall prey to large foreign players or be overtaken by competitors who are able to finance themselves better. Self-care can enhance wellbeing, prevent disease, curb illness, and restore health. I am not receiving compensation for it (other than from Seeking Alpha). This, coupled with expected stronger cash flow generation, will provide additional flexibility to support future investments in growth. "We're going to build an industry-leading and sustainable pipeline," the CEO said. Roche. 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. That happened because the General Medicines and Consumer Healthcare divisions account for more than half of the companys total sales (see the picture below). Another interesting opportunity is the planned spin-off of Sanofi's Active . Julie Van Ongevalle Day by day, evidence shows that vaccines will be much needed in order to fight Covid outbreaks, even in 2022, and, despite my first cold expectations, the financial margins for them seem to be substantial, although there could eventually be an excess in authorized vaccines, which would lead to lower prices and profits. I wrote this article myself, and it expresses my own opinions. We are committed to providing world-class products and services that help manage energy, stress, sleep and anxiety. However, it looks like that les grandes manoeuvres, aimed at the realization of this project, will proceed at a slow speed. Real-time Euronext Paris 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. We are an innovative global healthcare company, driven by one purpose: we chase the miracles of science to improve peoples lives. investor.relations@sanofi.com, France:+ 33 1 53 77 45 45 |U.S.:+ 1 908 981 5560. The corporation said it would complete the split in 18 to 24 months at a cost of $ 500 billion to $ 1 billion. By 2026, cash generated from operations for New GSK is expected to exceed 10 billion. Compared to its peers, the French company appears to be inexpensive. 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. The company expects to announce a strategic plan in December. 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. Worldwide, STADA Arzneimittel AG sells its products in approximately 120 countries. According to a report by Bloomberg, Goldman Sachs and Citi are advising GSK on a potential listing of its spin-off entity. The company focuses on a three-pillar strategy consisting of generics, specialty pharma and non-prescription consumer healthcare products. In 2017, Sanofi completed a swap announced in June 2016, with Germanys Boehringer Ingelheim. And Scottish universities have a track record of securing UK funding. Therefore, investors should approach this investment with a long-term mindset. Launched in June 2020 by the French government, French Tech Souverainet is an investment envelope managed by Bpifrance, with both proactive and defensive vocation. 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. As previously announced, under the terms of the transaction, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%. R&D Spend: USD 13.080 billion. Disclosure: I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. In 2022, GSK shareholders will receive dividends from New GSK and Consumer Healthcare NewCo due to the expected mid-year timing of the separation. Career opportunities. Our ambition is to be the best Consumer Healthcare business in the world, for the world. The firm created a new subsidiary to deal with the talc-related litigation, before filing for the new companys bankruptcy in an attempt to block claims for damages from those who say J&Js baby powder damaged their health. Global markets live: GM, Pfizer, Exxon, UBS, Boeing EUROAPI Announces Resignation of Corinne Le Goff as an Independent Member on the Board .. 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. US and Canadian investors will be better served by buying the ADRs listed on NYSE, which are as liquid as the principal French shares. (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. I am encouraged by the organizations early achievements in our efficiency initiatives, which will allow us to further drive innovation in our business., 1985 - 2023 BioSpace.com. Paris, March 18 2022. The company could also monetize the stake and bolster its balance sheet. Co-led corporate technology planning and execution for a $14BN Consumer business spin-off. The unit's revenue grew by 3% at constant exchange rates in . Opinions expressed by Forbes Contributors are their own. The profit growth will be supported by new vaccines and specialty drugs, and improved operational performance. The company expects a strong drug pipeline, backed by strong research and development expenses to drive sustainable, long-term growth for the pharmaceutical business. Any material effect of COVID-19 or recent armed conflicts on any of the foregoing could also adversely impact us. 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. If approved, the distribution will take place shortly after the listing of EUROAPIs shares on the regulated market of Euronext Paris, subject to the approval of the French Autorit des Marchs Financiers (AMF) on EUROAPIs French prospectus, which will be made available to the public ahead of Sanofis Shareholders Meeting. With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer 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. Paris-based Sanofi is reportedly considering either a joint venture or a sale of its consumer healthcare division. 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. Business is on track to demerge and list as a new company in mid-2022. Active Pharmaceutical Ingredients (APIs) are the chemical or biological substances in a medicine that have a therapeutic effect. 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 . Neither Sanofi nor EUROAPI assumes any responsibility for any violation of any such restrictions by any person. 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 . With this focused attention from management, the consumer-health spin-off enjoyed a relatively smooth path to independence and a successful public listing. Forward-looking statements are generally identified by the words expects, anticipates, believes, intends, estimates, plans and similar expressions. * This saved time would otherwise be spent on unnecessary waiting, travel and consultations in primary care or emergency department settings. 75017 Paris FRANCE I have developed a broad set . acted as financial advisor to Euroapi. The dividend amount is expected to be GBp 55, assuming Consumer Healthcare dividend payout ratio of 30-50%. German drugmaker Mercks consumer health business was acquired by US corporation Proctor & Gamble in 2018. I have no business relationship with any company whose stock is mentioned in this article. "Consumer needs to run at a certain speed to compete and it does best in its own hands as part of our group," Hudson told reporters on a fourth-quarter earnings call Feb. 4. 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. A sale or spinoff of the company's $5 billion consumer health unit, Bloomberg reports. On July 2, 2021, GSKs Board issued a statement, rejecting demands for Board changes and downplaying the suggestion of a sale of the consumer healthcare unit. 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. 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 company. Josephine Fubara In a letter dated July 1, 2021, Elliott Advisors (UK) Limited publicly confirmed the acquisition of a significant stake in GSK after a thorough due diligence process. The gut is often referred to as the bodys second brain. We wanted it to be a fast-growing consumer health business [and] to explain to the market why we thought we were the best owner.". It followed a historic slump in over-the-counter sales for cough and cold medicines across the industry in 2020 as a result of social distancing and other pandemic-related regulations. Our high-quality products are available in more than 5,780 pharmacies. There are certain watershed moments in every person's life that propel them to find a community. 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 . 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Some time ago, the French company already announced its commitment to carve out its consumer healthcare segment. Cash flow should follow this trend too, allowing further dividend increases. Sanofi is a long-term player. We are committed to providing world-class products and services that help manage energy, stress, sleep and anxiety. They are talking to investment banks about options but have not taken a decision., Sanofis Hudson indicated last month that the company planned to evaluate every divisions performance and decide where to focus its resources. The Consumer Healthcare unit had two major deals in 2018, when GSK acquired Novartis' 36.5% stake in its consumer healthcare joint venture (JV) followed by a merger with Pfizer's consumer healthcare business into a JV. Haleon emerges from GSK consumer healthcare spin-off. 50 billion, which the drugmaker considered to undervalue the business. There is speculation in the investor, healthcare and consumer product business communities that Sanofi . At that time, Sanofis three remaining global business units, Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare werent changing. GlaxoSmithKline and Pfizer plan to spin off their joint consumer health business next year, and German drugmaker Merck KGaA sold its consumer health division to Procter & Gamble Co in 2018. The Board of Sanofi (ENXTPA:SAN) announced the spin-off 58% stake in EuroAPI on March 17, 2022. 07 MARCH 2023. In addition, GSK is continuing with the restructuring and active portfolio management of its consumer-health division ahead of the spin-off, expected by late 2022. Grow with us; Diversity & Inclusion; Development opportunity: how Sanofi empowers you; 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. 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