Career opportunities. Bad Vilbel, Germany. In the first quarter, the Specialty Care division grew at a pace of more than 7% YoY, while Vaccines fractionally grew by 0.7%. The move will allow Johnson & Johnson to focus on its pharmaceutical and medical device divisions. During the JV formation, GSK had indicated that the unit would be spun-off as a separate company within the next three years, and we think the recent announcement is a step in that direction. . Johnson & Johnson, Bayer and Sanofi, according to Reuters, are close competitors in the consumer healthcare market. 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.. 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. The CEO's review of the consumer unit coincided with a trend for pharmaceutical giants like Johnson & Johnson and GlaxoSmithKline PLC to simplify their diversified structures and double-down on lucrative franchises, such as cancer and rare disease, driven by pioneering science, data and technological advances. Rx Sales: USD 49.293 billion. Post transaction, Sanofi confirms that it will hold circa 30% of the share capital and voting rights of EUROAPI and will remain a long-term strategic partner, supporting EUROAPIs growth ambitions as an independent company over the coming years. If you wish to continue to this external website, click Proceed. The new head of the division, Julie Van Ongevalle, shared that the company will focus on core brands and categories while pursuing first-in-class Rx-to-OTC switches in the ED and flu categories in the U nited States. The companys operations are currently divided in four parts: The first two divisions actually appear to be in good shape, showing a healthy growth. Sanofi is offering its animal health unit Merial in exchange for Boehringer's consumer health, or non-prescription drugs, business plus 4.7 billion euros ($5.2 billion) in cash in exclusive . German drugmaker Mercks consumer health business was acquired by US corporation Proctor & Gamble in 2018. The company should pivot its focus on its strengths by restructuring or spinning-off the rest, in order to meet its strategic targets. The largest part of Sanofis business is not growing. 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. For medical information: medinfo.india@sanofi.com , customercare. If you wish to continue to this external website, click Proceed. For July 2022 GlaxoSmithKline [GSK.L] set the scene for one of the biggest listings in . 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 could also monetize the stake and bolster its balance sheet. The digestive system provides energy and fuel for the whole body, so when someone suffers from gastro intestinal disorders, their life can literally be put on hold. We believe the deteriorating performance at the largest segment may have triggered the need to refocus on the biopharma business. 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. Building on this foundation, Sanofi delivered a resilient underlying performance in the third quarter with strong sales in Specialty Care, largely driven by the continued outstanding performance of Dupixent. 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. Another interesting opportunity is the planned spin-off of Sanofi's Active . Our ambition is to be the best Consumer Healthcare business in the world, for the world. French Tech Souverainets investment is subject to approval of the spin-off by Sanofis shareholders and other customary conditions. Please contact the Global Headquarters in France . Analysts agree that JAZZ is one of the best healthcare stocks out there. Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements. 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%. Sanofi is a long-term player. 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. The joint venture has a global market share of 3.5%. Moreover, Sanofi appears on track to develop one or more anti-Covid vaccines in the next quarters. "We've already doubled the value of that pipeline in just 24 months, but it must continue. The net debt/adjusted EBITDA leverage ratio is expected be less than 2x. Prioritization will become increasingly important going forward, Hudson told reporters. 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. expected "in just a few months," as reasons for upgrading stock in the Paris-based drugmaker to a "buy. Earlier this month, Sanofi announced a new strategic vision for its Consumer Healthcare division. J.P. Morgan & Cie S.A.S. 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. The company operates in three major business segments, Pharmaceuticals, Vaccines and Consumer Healthcare. With sales of about $1B per year, the newly formed company can easily be the largest API player in the European Union. "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. 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.. Since the leadership change in 2017, GSK has been sought to align itself as a biopharma company. Today marks a major milestone for EUROAPI, a leading European company dedicated to the development, production and marketing of active pharmaceutical ingredients* (API), as Sanofis Board of Directors unanimously proposed, on March 17th, to submit to its shareholders the distribution of circa 58% of the share capital of EUROAPI. 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. Again, the sooner the better. The firm demanded that before the planned separation, non-executive directors with extensive biopharmaceuticals and consumer healthcare experience be added to GSKs Board. Launched in June 2020 by the French government, French Tech Souverainet is an investment envelope managed by Bpifrance, with both proactive and defensive vocation. FRANKFURT/PARIS (Reuters) - Sanofi <SASY.PA> is considering a joint venture or outright sale among options for its consumer healthcare unit, sources told Reuters, as the French drugmaker prepares to present a new strategic plan next month. Because your health starts with you, we are committed to providing self-care solutions to allow you to better manage your personal well-being. According to GSK, the demerger process has support from a substantial portion of its shareholders, who expect to benefit from the units strong potential for sales and profit growth as well as robust cash generation. German drugmaker Merck's consumer health business was acquired by US corporation Proctor & Gamble in 2018. About STADA Arzneimittel AG Colds are one of the most common illnesses experienced by both adults and children. This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. 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. With Paul Hudson, Chief Executive Officer With the implicit support of the French government (given how over-reliant most western countries, including France, are on Asian and Indian drug suppliers), this move brings another massive opportunity for Sanofi and its shareholders. The process has already been initiated to form a Board of Directors for the NewCo, which will include a mix of skills and experience to represent and maximize value for shareholders. Our team, across some 100 countries, is dedicated to transforming the practice of medicine by working to turn the impossible into the possible. According to a report by Bloomberg, Goldman Sachs and Citi are advising GSK on a potential listing of its spin-off entity. We provide potentially life-changing treatment options and life-saving vaccine protection to millions of people globally, while putting sustainability and social responsibility at the center of our ambitions. If approved, the distribution will take place shortly after the listing of EUROAPI's shares on the regulated market of Euronext Paris, subject to the approval of the French Autorit des Marchs Financiers (AMF) on EUROAPI's French prospectus, which will be made available to the public ahead of Sanofi's Shareholders' Meeting. Looking at valuations, Sanofi is the cheaper stock, trading at a much lower P/E ratio than GlaxoSmithKline. Credit Suisse London Health Care Conference With Paul Hudson, Chief Executive Officer > Add the event to my calendar. | 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 . 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. Post separation, New GSK will focus across four core therapeutic areas (TAs): Infectious Diseases, HIV, Oncology and Immunology/Respiratory. The . 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. JUNE 28, 2021. However, net sales took a dive in Q1, declining by roughly 4.6% YoY (reported). Credit Suisse London Health Care Conference GSK cited the opportunity cost from the immense profit and cash generation potential of the consumer healthcare unit as well as higher expenses in the form of taxes in case of a sale as compelling reasons for the spin-off. In 2018, Pfizer split itself into three business units after failing to sell off its consumer health segment. In October, J&J sparked controversy by using a bankruptcy manoeuvre to avoid paying out for the tens of thousands of claims made against it. 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.. Combined, J&J projects the two segments will tally $77 billion in 2021 revenue. Executive Vice President, Consumer Healthcare, on International Self-Care Day 2022, Self-care activities generate $119 billion in monetary and healthcare workforce savings globally.1, Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally.1, Globally, self-care saves people around 11 billion hours.1*. You may opt-out by. -. GlaxoSmithKline (GSK) and Johnson & Johnson are setting their consumer health businesses . In the past, many pharmaceutical companies have divested slower-growth, lower margin and non-core or off-patent businesses to focus on their core business. 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. 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. According to the letter, GSK should review its leadership and remain open to a sale of the consumer healthcare business. Julie Van Ongevalle How management will address them we dont know of course, but here are some likely solutions they may put in place in a relative short time which will act as strong catalysts for Sanofis business. 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 . Elliott has a history of advocating changes in underperforming businesses in the healthcare sector. The joint venture was then spun off and listed separately. The company expects to announce a strategic plan in December. The leading site for news and procurement in the pharmaceutical industry. without the spin-off) from 2022, following anticipated lower growth in 2021 due to currency weaknesses and . 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. The one-shot cervical cancer vaccine paradigm. Julie Van Ongevalle 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. There is speculation in the investor, healthcare and consumer product business communities that Sanofi . Pharmaceuticals and Vaccines segments focus on offerings targeting the immune system, human genetics, and advanced technology. I wrote this article myself, and it expresses my own opinions. We understand allergy sufferers needs and have a number of innovative, effective products in our range to respond effectively to each persons specific allergy needs. . As a result, French Tech Souverainet will become a long-term reference shareholder of EUROAPI and will be represented by two non-executive members on EUROAPI's Board of Directors, including Benjamin Paternot and another member to be determined. Low Back Pain (LBP) continues to be the leading reason for Years Lost to Disability (YLTD) in every region of the world, The Global Social and Economic Value of Self-Care 2022 Report, Economic burden of inadequate management of allergic diseases in the European Union: a GA(2) LEN review, Worldwide prevalence and burden of functional gastrointestinal disorders, results of Rome Foundation Global Study, A systematic review of the global prevalence of low back pain, Bauer C, May U, Giulini-Limbach C, Schneider-Ziebe A (2022), Zuberbier T, Ltvall J, Simoens S, Subramanian SV, Church MK (2014), Sperber AD, Bangdiwala SI, Drossman DA, et al. Nicolas Obrist|+ 33 6 77 21 27 55 |nicolas.obrist@sanofi.com, Investor Relations Sanofi streamlines Consumer Healthcare portfolio in Europe with divestiture of 16 brands to STADA. Therefore, investors should approach this investment with a long-term mindset. ALTUVIIIO approved by the U.S. FDA: this positive event triggers impairment reversal, positively impacting 2022 IFRS net income; no change on business net income (non-IFRS), Press release: New Phase 3 data presented at WORLDSymposium reinforce Nexviazyme (avalglucosidase alfa) as potential new standard of care for all people living with late-onset Pompe disease, Media Update: New data for tolebrutinib, Sanofis investigational brain-penetrant BTK inhibitor, showed significant effect on CNS immune mediators that driveMS disease progression, 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, Credit Suisse London Health Care Conference, With Paul Hudson, Chief Executive Officer, Cowens 43rd Annual Health Care Conference, With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer. The French drugmaker spent more than 12 billion on acquisitions in the last two years to bolster the group's pipeline of early medicines, said CFO Jean-Baptiste de Chatillon, who added that the company will ramp up R&D spending by around half a million euros in 2022. Therefore, their poor performance affects the overall results: General Medicines declined by 9% and Consumer Healthcare by 14% YoY. 14 February 2023. "If the GlaxoSmithKline Consumer Health spinoff goes well, we believe it is likely that Sanofi could spin off its consumer health business as well, which is a reasonable extension of the internal separation that is ongoing," HSBC analyst Steve McGarry said in a Nov. 1 note. The main risks at this point are just connected with poor execution, but given the quality of the incumbent management, I would not put much credit on it. Sanofi is a diversified global healthcare leader, focused on developing products that meet the health needs of people. Published: Nov 21, 2019 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.
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