Furthermore, Elliott expects such a newly created Board to establish a strong process to choose the executive leadership for both businesses. Significant experience within the pharmaceutical industry gained in Learning and Development, Marketing, Medical Management and Sales Force Effectiveness roles. | 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 . 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. 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. 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. 14 February 2023. GSK is a research-based healthcare company, focused on developing, manufacturing, and marketing of human healthcare products. Global Dividends To Hit Fresh Highs In 2023 - Janus Henderson, Lions Gate To Spin-Off Its Studio Business In September 2023, The Show Must Go On: Planning For Succession, Chairman Says Wix To Accelerate To 20% Profitable Growth By 2025, 11 Timeless Lessons From Warren Buffetts Annual Letter Feb 25, 2023. 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. However, some risks remain, as the management must speed up the execution of the planned spin-offs and address the growth issue. Sanofi assumes no responsibility for the information presented on this website. An initial public offering (IPO) of the unit, which could be worth around $30 billion according to two sources familiar with the matter, is also on the cards. Notice to holders of American Depositary Receipts (ADRs) 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. Pfizer Inc. (NYSE: PFE) today announced the closing of its joint venture with GlaxoSmithKline plc (NYSE: GSK) to combine the parties' respective consumer healthcare businesses to create the world's largest over-the-counter (OTC) business with robust iconic brands. Sanofi is lining up to spin off its active pharmaceutical ingredients division that will include a listing as a public company, Reuters reported, citing unnamed sources.. 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. Again, the sooner the better. At the time, Hudson stated, Since joining Sanofi only two months ago, I am increasingly excited about the strength of our businesses, our ability to develop transformative medicines and the diverse talent of our teams across the organization. Opinions expressed by Forbes Contributors are their own. Self-care can enhance wellbeing, prevent disease, curb illness, and restore health. Design Partnerships with universities allow companies to apply for UK funding streams. The consensus recommendation is Strong Buy, based on a survey of 18 . ", latest-news-headlines And Scottish universities have a track record of securing UK funding. While GlaxoSmithKline boasts a higher dividend yield at 5.4% than Sanofi's 3.6%, Sanofi . Any material effect of COVID-19 or recent armed conflicts on any of the foregoing could also adversely impact us. Therefore, investors should approach this investment with a long-term mindset. investor.relations (at) sanofi.com. Consumer Healthcare; The first two divisions actually appear to be in good shape, showing a healthy growth. The company was formed by a merger between Glaxo Wellcome plc and SmithKline Beecham plc. "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 . Private part time value investor. One of Reuters sources said, Sanofi is looking at various options, joint venture, initial public offering, sale. 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 . When it lists on the Lon . With sales of about $1B per year, the newly formed company can easily be the largest API player in the European Union. "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 . 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. 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, Press Release: Sanofi moves forward with EUROAPI listing on Euronext Paris, Sanofi will give its shareholders the opportunity to be part of EUROAPIs new chapter of growth through an additional extraordinary dividend in kind, EUROAPI listing on Euronext Paris will occur in H1 2022, despite volatile market conditions, The French State, through the fund French Tech Souverainet, intends to acquire 12% of EUROAPIs capital for up to 150 million from Sanofi to become a long-term reference shareholder of EUROAPI, As planned, Sanofi will continue to hold circa 30% of EUROAPI, post transaction, The overall transaction is subject to approval at the Sanofi 2022 Shareholders Meeting, and the AMF approval on EUROAPIs French prospectus. Compared to its peers, the French company appears to be inexpensive. Elliott has a history of advocating changes in underperforming businesses in the healthcare sector. Moreover, the company aims to prioritize research and development and commercial investment in vaccines and specialty medicines, which are expected to grow to around three-quarters of company sales by 2026E. 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. Following Sanofi's January announcement that it will pay $11.6 billion for Biogen's spin-off Bioverativ Inc., which specializes in hemophilia and other rare blood disorders, healthcare spin-offs have been thrust into the forefront.. If you wish to continue to this external website, click Proceed. Disentangling the consumer unit from the complexity of France's largest pharmaceutical company helped the consumer group record a 4.6% year-on-year rise in 2021 sales, CEO Paul Hudson said. 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. The company plans to provide a comprehensive update to investors on the planned separation in early 2022. Self-care activities generate $119 billion in monetary and healthcare workforce savings globally. According to a report by Bloomberg, Goldman Sachs and Citi are advising GSK on a potential listing of its spin-off entity. 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. In the last five years, through the Biotechnology and Biological Sciences Research Council and Medical Research Council, 13% (450m) of all UK funding has gone to universities in Scotland. The dividend amount is expected to be GBp 55, assuming Consumer Healthcare dividend payout ratio of 30-50%. I am not receiving compensation for it (other than from Seeking Alpha). Then there is the funding support available. 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. "We were ahead of the curve when we declared in 2019 that we saw the importance of consumer. Employing over 100,000 workers, it generates over $42 billion in annual sales and is ranked at #288 in the Fortune 500. 2021 position: 10. The . In 2017, Sanofi completed a swap announced in June 2016, with Germanys Boehringer Ingelheim. Sanofi is listed on EURONEXT: SAN and NASDAQ: SNY. All in all, even though the stagnant divisions are at the moment predominant, that story is changing. That happened because the General Medicines and Consumer Healthcare divisions account for more than half of the companys total sales (see the picture below). Builds strategic relationships, both internally . With Paul Hudson, Chief Executive Officer 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. (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. 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. Anyway, it is not nave to think that, at the moment, this company has a few problems that must be addressed. 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. Executive Summary. J & J stocks, which are a portion of the Dow Jones Manufacturing Average (.DJI), rose 1.5%. However, it looks like that les grandes manoeuvres, aimed at the realization of this project, will proceed at a slow speed. . By Anthony King 2022-07-18T12:22:00+01:00. . Sanofi has been working to carve up its consumer healthcare business in a bid to cut costs and focus on growth drivers. Landmark New England Journal of Medicine publication reinforces potential of GSK's respiratory syncytial virus older adult vaccine candidate. The company focuses on a three-pillar strategy consisting of generics, specialty pharma and non-prescription consumer healthcare products. 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 . 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 . Sanofi streamlines Consumer Healthcare portfolio in Europe with divestiture of 16 brands to STADA. The leading site for news and procurement in the pharmaceutical industry. 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. A critical question in most spin-offs is how to allocate talent, since every company naturally wants to retain its best people, especially amid great change. Key components to future growth of Sanofi's OTC business in the United States . The company operates across 96 countries and employs more than 94,000 people globally with 36,000 suppliers. 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. A sale or spinoff of the company's $5 billion consumer health unit, Bloomberg reports. Final note: I am long Sanofi directly through its shares listed in Europe. 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 Board of Sanofi (ENXTPA:SAN) completed the spin-off 58% stake in EuroAPI on May 6, 2022. Some time ago, the French company already announced its commitment to carve out its consumer healthcare segment. Bad Vilbel, Germany. The approach mirrors Novartis' own move to carve out its Sandoz generics unit which private equity groups like EQT AB (publ), Blackstone Inc. and The Carlyle Group Inc. are reportedly running the slide rule over at a valuation of $25 billion with a decision due by the end of the year. 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. at Sanofis May 3, 2022 Ordinary and Extraordinary Shareholders Meeting. You may opt-out by. Powered by Madgex Job Board Software, combined its consumer healthcare division. 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. Elsewhere, Sanofi said it expects trials of the COVID-19 shot being developed in conjunction with GSK to read out later this quarter, while a late-stage vaccine for respiratory syncytial virus developed with British COVID-19 vaccine-maker AstraZeneca PLC is expected to be filed with regulators this year. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven . In the first quarter, the Specialty Care division grew at a pace of more than 7% YoY, while Vaccines fractionally grew by 0.7%. It planned to form a new Primary Care global business unit that would combine the product portfolios from its existing Diabetes and Cardiovascular (DCV) unit with Established Products. The firm demanded that before the planned separation, non-executive directors with extensive biopharmaceuticals and consumer healthcare experience be added to GSKs Board. Sanofi provides healthcare solutions in over 150 countries. Nicolas Obrist|+ 33 6 77 21 27 55 |nicolas.obrist@sanofi.com, Investor Relations 5 Ways to Connect Wireless Headphones to TV. The transaction with STADA ensures that these products will continue to be available to consumers. 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. 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. Earlier this month, Sanofi announced a new strategic vision for its Consumer Healthcare division. Take a look at highlights from our portfolio of self-care products. Our portfolio in cough and cold addresses the full range of symptoms so people can get back to their lives. Our brands are trusted across the world, and some have been on the market for over 50 years. Transaction is expected to close on May 6, 2022. Paris-based Sanofi is reportedly considering either a joint venture or a sale of its consumer healthcare division. > Add the event to my calendar, Cowens 43rd Annual Health Care Conference 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. 2021 position: 2. 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. Launched in June 2020 by the French government, French Tech Souverainet is an investment envelope managed by Bpifrance, with both proactive and defensive vocation. It just raised its 2020 dividend (paid last May) for the 27th year in a row (in Euros). Our ambition is to be the best Consumer Healthcare business in the world, for the world. 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. Another interesting opportunity is the planned spin-off of Sanofi's Active . Total Pharmaceuticals was up 1.5%, whereas Vaccines was down 9.8%, with total net sales down 1.1%. Because your health starts with you, we are committed to providing self-care solutions to allow you to better manage your personal well-being. Sanofi does not anticipate any impact of this divestiture to its European-based workforce. Incorporated in 1999, GlaxoSmithKline plc (GSK), a British company based in United Kingdom. I wrote this article myself, and it expresses my own opinions. 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. Sanofi's CDMO spinoff set for next month as new group targets 2022 revenues of 1B. Based in Paris, France, Sanofi stands in the upper ranks of the world's top 10 pharmaceutical companies based on revenue. -. 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). , initial public offering, sale site for news and procurement in the United States swap... Glaxosmithkline plc ( GSK ), rose 1.5 %, with Germanys Boehringer Ingelheim sales. 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