25 November 2019 - Deborah Wilkes
Media reports suggest Sanofi is considering a range of strategic options, including divestment, for its Consumer Healthcare business, but no final decision has been made.
Reuters says the French pharmaceutical company is considering a “joint venture or outright sale among options for its consumer healthcare unit”.
Quoting “two sources familiar with the matter”, Reuters says an “initial public offering (IPO) of the unit, which could be worth around USD30 billion, is also on the cards”.
Reuters says one of the sources said Sanofi was talking to investment banks about options but had not taken a decision.
Sanofi declined to comment on the media reports.
New chief executive officer
The reports come soon after Paul Hudson replaced Olivier Brandicourt as chief executive officer of Sanofi on 1 September 2019.
Announcing Sanofi’s financial results for the third quarter of 2019 at the end of October, Hudson declined to comment on Sanofi’s future strategic priorities. He said more details would be available in December 2019 (click here to read the News story).
Before joining Sanofi, Hudson was chief executive officer of Novartis Pharmaceuticals and a member of the Executive Committee of Novartis. He has also worked for AstraZeneca and Schering-Plough.
Sanofi's Consumer Healthcare business reported worldwide sales up by 0.4% at constant exchange rates to EUR1.14 billion (USD1.25 billion) in the third quarter of 2019. As reported, sales were up by 2.1%.
The company said growth had been curbed by a voluntary recall of Zantac, non-core brand divestments, and tightening regulatory requirements, particularly in Europe.