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. 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. Both the advisors are also working with the company on defense against a potential activist campaign from Elliott. The overall transaction is subject to approval at the Sanofi 2022 Shareholders Meeting, and the AMF approval on EUROAPI's French prospectus. The consensus recommendation is Strong Buy, based on a survey of 18 . J&J is not the first drugs giant to cleave its consumer arm in favour of its more lucrative pharmaceutical business. As previously announced, under the terms of the transaction, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%. In 2021, Sanofi announced several critical steps in this journey with the unveiling of the creation of EUROAPI and the appointment of Karl Rotthier as its CEO in January, the appointment of Viviane Monges as Chair of the Supervisory Board in July and the finalization of the carve-out in December 2021. Sanofi . 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. (2021). Sanofi assumes no responsibility for the information presented on this website. Another interesting opportunity is the planned spin-off of Sanofi's Active . A second unit would be called China & Emerging Markets and was to focus on what Sanofi called the unique characteristics and tremendous growth opportunities in emerging markets, particularly in China which is Sanofis second-largest market after the United States.. 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 . At its third-quarter financial report on October 31, Sanofi reported total net sales of 9.499 billion for the quarter, with Consumer Healthcare reporting 1.136 billion, up 0.4%. At that time, Sanofis three remaining global business units, Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare werent changing. The net debt/adjusted EBITDA leverage ratio is expected be less than 2x. 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. These risks and uncertainties include among other things Sanofis and EUROAPIs ability to benefit from external growth opportunities, to complete related transactions and/or obtain regulatory clearances, trends in exchange rates and prevailing interest rates, volatile economic and market conditions, cost containment initiatives and subsequent changes thereto, and the impact that COVID-19 and recent armed conflicts will have on us, our customers, suppliers, vendors, and other business partners, and the financial condition of any one of them, as well as on our employees and on the global economy as a whole. Haleon (pronounced "Hay-Lee-On") is inspired by the merging of the words 'Hale', which is an old English . 14 February 2023. As a health journey partner, we aim to empower consumers to live healthier and fuller healthier lives through a full range of holistic pain management solutions. 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. Johnson & Johnson, Bayer and Sanofi, according to Reuters, are close competitors in the consumer healthcare market. "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 . The company has also claimed that some of its major shareholders support the spin-off deal. 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. Therefore, their poor performance affects the overall results: General Medicines declined by 9% and Consumer Healthcare by 14% YoY. Please contact the Global Headquarters in France . Final note: I am long Sanofi directly through its shares listed in Europe. The listing will also help GSK increase its focus on its drug pipeline. The agreement covers the registrations, trademarks, and related commercial rights of 16 products across Europe. . I have no business relationship with any company whose stock is mentioned in this article. 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. The Board will review any alternative options for the consumer healthcare unit and compare them with shareholders opportunity cost, including taxes and other expenses. Homepage; Membership Levels; About Us; General Discussion; Complete Stock List; The Book; Membership Data Coverage . Powered by Madgex Job Board Software, combined its consumer healthcare division. Global markets live: GM, Pfizer, Exxon, UBS, Boeing EUROAPI Announces Resignation of Corinne Le Goff as an Independent Member on the Board .. Market Intelligence Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven by the cough and cold, pain care, and digestive wellness categories. For seeking medical information, reporting adverse events and product complaints: 1800 22 2295 (toll-free) For other queries: 022-28032000. 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. 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. We believe the deteriorating performance at the largest segment may have triggered the need to refocus on the biopharma business. 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. Precision medicine has the potential to radically change the way health services are delivered, combining medical expertise with the latest technology to provide bespoke treatments for individual patients. If you have an ad-blocker enabled you may be blocked from proceeding. We believe the separation could be a trigger for driving improved share price appreciation, given that the stock has underperformed peers historically. Anyway, it is not nave to think that, at the moment, this company has a few problems that must be addressed. We are committed to providing world-class products and services that help manage energy, stress, sleep and anxiety. 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. I wrote this article myself, and it expresses my own opinions. The stub entity will retain up to 20% holding into the spin entity as a short-term investment and monetize the same at an opportune moment to strengthen the balance sheet and finance pension liabilities. The companys consumer health unit is worth about $30 billion and one of the companys options is an initial public offering (IPO). Colds are one of the most common illnesses experienced by both adults and children. Jones Day (France) acted as legal advisors to Sanofi. Sanofi Forward-Looking Statements | Erfahren Sie mehr . 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. Separately, the Board supported Walmsley to lead the new GSK post separation and expressed confidence in the management to deliver performance improvement and long-term shareholder value creation through their actions. chc@sanofi.com (Consumer healthcare products) For reporting adverse events: PV.india@sanofi.com. Again, the sooner the better. 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. 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. German drugmaker Mercks 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 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. 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. It is provided for information only. In 2018, Pfizer split itself into three business units after failing to sell off its consumer health segment. Is the microbiome therapy hype up for a reckoning? (Photo by Ben STANSALL / AFP) (Photo by BEN STANSALL/AFP via Getty Images). Credit Suisse London Health Care Conference "As discussed during our Capital Markets Day in February, simplifying the CHC product portfolio is an important part of our strategy to focus our resources and efforts where we can bring the most value, especially to consumers. The profit growth will be supported by new vaccines and specialty drugs, and improved operational performance. 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). 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 . 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. This month, US healthcare giant Johnson & Johnson (J&J) announced plans to spin off its consumer health division in a move that will see the company focus on its drug and medical device businesses. 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. Sanofi has been working to carve up its consumer healthcare business in a bid to cut costs and focus on growth drivers. 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. 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 . 2021 position: 2. The prescription and pharmaceutical products that make up much of the new J&J company span several therapeutic areas, and include cancer drugs, vaccines and heart medicines. She is particularly interested in stories about AI, antibiotic resistance, and global health equality. 5 Ways to Connect Wireless Headphones to TV. 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. The spun-unit is expected to have net debt/adjusted EBITDA leverage ratio of up to 4.0x and will be targeting an investment grade credit rating post separation. Sanofi. 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 . This is the reason why earnings grew by 5.2% YoY in Q1, despite the reported top-line slowdown. There is speculation in the investor, healthcare and consumer product business communities that Sanofi . Sandrine Guendoul|+ 33 6 25 09 14 25 |sandrine.guendoul@sanofi.com With sales of about $1B per year, the newly formed company can easily be the largest API player in the European Union. It is provided for information only. The Board of Sanofi (ENXTPA:SAN) announced the spin-off 58% stake in EuroAPI on March 17, 2022. 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). | As part of its quest to streamline consumer healthcareand eventually spin off the unit as a standalone businessSanofi will offload 16 consumer health products to Germany's Stada . By Anthony King 2022-07-18T12:22:00+01:00. . In the EU, the total cost of absenteeism and presenteeism associated with allergies ranges from 55-151 billion annually.2. Sanofi is a long-term player. These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. 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. -. Despite volatile market conditions, Sanofi has decided to move forward with the listing process of EUROAPI. 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 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. Total Pharmaceuticals reported 6.434 billion, Sanofi Pasteur (Vaccines) reported 1.929 billion. To move forward with the company has also claimed that some of more. 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