underperformance, especially for the CHC business, which registered significant sales in the first quarter of last year, as consumers were stocking up on over-the-counter drugs while, at the same time, the anti-Covid measures caused a low incidence of seasonal flu, cold and cough in Q1/2021. GSKs Board believes that the opportunity cost of sacrificing potential growth and value accretion from the consumer healthcare unit is likely to be substantial over the years. 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. Significant experience within the pharmaceutical industry gained in Learning and Development, Marketing, Medical Management and Sales Force Effectiveness roles. 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. "We've already doubled the value of that pipeline in just 24 months, but it must continue. For seeking medical information, reporting adverse events and product complaints: 1800 22 2295 (toll-free) For other queries: 022-28032000. I have no business relationship with any company whose stock is mentioned in this article. Moreover, the remaining 20% stake in the spun-off unit post deal completion offers GSK with the opportunity to benefit from strong performance at the spun-off unit. Although Sanofis management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Sanofi, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. 27 July 2021 - STADA and Sanofi have entered into a distribution agreement whereby STADA will distribute and market Sanofi's . Sanofi exchanged its Merial animal drugs business with Boehringers over-the-counter (OTC) drugs businessbasically, Sanofi picked up Boehringers consumer health business. We are an innovative global healthcare company, driven by one purpose: we chase the miracles of science to improve peoples lives. Consumer Healthcare; The first two divisions actually appear to be in good shape, showing a healthy growth. Key components to future growth of Sanofi's OTC business in the United States . Private part time value investor. . . We recognize that allergies can be challenging and symptoms such as itchy eyes, sneezing and a runny nose can be a burden to getting on with everyday life. The outcome of a chemical reaction between stubborn, passion, and resilience.<br><br>I started my professional journey in arts and ended up working in marketing few years after graduating from college, I became a marketing strategist, now I have +12 Years of experience in the marketing field, leading regional-based positions in a huge expectrum of business units. With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer 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. This, in turn, will contribute significantly to more sustainable healthcare systems. 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. +33 (0)1 53 77 40 00, 46 avenue de la Grande Arme 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. GSK claimed strengthened governance through the appointments of former Bristol-Myers Squibb executive Charles Bancroft and Anne Beal as non-executive directors. Is this happening to you frequently? If you wish to continue to this external website, click Proceed. Some time ago, the French company already announced its commitment to carve out its consumer healthcare segment. 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. I am not receiving compensation for it (other than from Seeking Alpha). 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. This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. The rationale is that the company, whose innovation engine has been strongly reliant on its relationship with Regeneron Pharmaceuticals, would be able to invest the proceeds into more internal research. Sanofi's CDMO spinoff set for next month as new group targets 2022 revenues of 1B. In connection with the proposed spin-off, French Tech Souverainet has agreed to purchase 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. 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. Sanofi provides healthcare solutions in over 150 countries. The leading site for news and procurement in the pharmaceutical industry. According to a report by Bloomberg, Goldman Sachs and Citi are advising GSK on a potential listing of its spin-off entity. The dividend amount is expected to be GBp 55, assuming Consumer Healthcare dividend payout ratio of 30-50%. The agreement covers the registrations, trademarks, and related commercial rights of 16 products across Europe. Culture and talent. If you wish to continue to this external website, click Proceed. Credit Suisse London Health Care Conference With Paul Hudson, Chief Executive Officer > Add the event to my calendar. The patent stays until 2035 to 2039 (oral form). GSK, its consumer health spin-off Haleon, and Sanofi could be on the hook for billions of dollars in potential damages over Zantac, a gastrointestinal drug pulled from the market in 2020 after it . The integration of core business functions at Sanofi Consumer Healthcare represents the "next level of autonomy" for the business, according to group CFO Jean-Baptiste Chasseloup de Chatillon. 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.. Sanofi CEO's strategy blueprint may include consumer health spinoff or merger: Bloomberg | Fierce Pharma . All in all, even though the stagnant divisions are at the moment predominant, that story is changing. 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. Based in Paris, France, Sanofi stands in the upper ranks of the world's top 10 pharmaceutical companies based on revenue. Sanofi assumes no responsibility for the information presented on this website. As a part of deal, GSK held majority controlling equity interest of 68% in the JV and the rest 32% equity interest was owned by Pfizer. 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. In the first quarter, the Specialty Care division grew at a pace of more than 7% YoY, while Vaccines fractionally grew by 0.7%. Sanofi will look to offload around 150 OTC brands as part of a radical overhaul of its Consumer Healthcare operation. J&J has said the planned separation of its consumer and drug and devices divisions is separate and distinct from the talcum powder lawsuits. commercializing best-seller drugs. An IPO could come as soon as 2022. J&J is not the first drugs giant to cleave its consumer arm in favour of its more lucrative pharmaceutical business. The pharmacological and medical device division maintains J & J's name, and the corporation expects a tax-exempt spin-off. 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. . Self-care can enhance wellbeing, prevent disease, curb illness, and restore health. 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. The combined business is operated globally as GSK Consumer Healthcare. > Add the event to my calendar, An in-depth look at our vaccines business, strategy and roadmap through to 2025/2030, We chase the miracles of science to improve peoples lives and to transform the practice of medicine, Please contact the Global Headquarters in France : All rights reserved. Business is on track to demerge and list as a new company in mid-2022. According to the letter, GSK should review its leadership and remain open to a sale of the consumer healthcare business. Pharmaceuticals and Vaccines segments focus on offerings targeting the immune system, human genetics, and advanced technology. Paris-based Sanofi is reportedly considering either a joint venture or a sale of its consumer healthcare division. /marketintelligence/en/news-insights/latest-news-headlines/sanofi-bucks-industry-trend-by-pledging-to-keep-stand-alone-consumer-unit-68747982 07 MARCH 2023. 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. Haleon emerges from GSK consumer healthcare spin-off. The gut is often referred to as the bodys second brain. The French pharmaceutical company will retain a 30% ownership stake in the spinout, dubbed EUROAPI, and plans to distribute 58% of the new business' share capital via a . 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. Earlier this month, Sanofi announced a new strategic vision for its Consumer Healthcare division. Disclosure: I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. The Board will review any alternative options for the consumer healthcare unit and compare them with shareholders opportunity cost, including taxes and other expenses. 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. As its shown below, in fact, sales mix is steadily improving over time. -. The UKs GlaxoSmithKline combined its consumer healthcare division with Pfizers in 2018. acted as financial advisor to Euroapi. Our portfolio in cough and cold addresses the full range of symptoms so people can get back to their lives. Sanofi (XPAR:SAN) Dividend Payout Ratio as of today (March 01, 2023) is 0.00. Dividend Payout Ratio explanation, calculation, historical data and more The Board of Sanofi (ENXTPA:SAN) completed the spin-off 58% stake in EuroAPI on May 6, 2022. 75017 Paris FRANCE Global markets live: GM, Pfizer, Exxon, UBS, Boeing EUROAPI Announces Resignation of Corinne Le Goff as an Independent Member on the Board .. 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. They are the essential molecules used in the composition and manufacture of any medicine. Start Now! With Paul Hudson, Chief Executive Officer "The transformation and modernization of this great company was always going to take some time," Hudson said. Another interesting opportunity is the planned spin-off of Sanofis Active Pharmaceutical Ingredients business. Deal Overview. Prioritization will become increasingly important going forward, Hudson told reporters. <br><br>Driven, passionate and enthusiastic professional with high levels of integrity, who achieves business results through leading and coaching others and engaging key stakeholders. 50 billion, which the drugmaker considered to undervalue the business. This acquisition further strengthens STADA as a top-five player in Europes consumer healthcare market, supports our growth acceleration, and is another proof point of STADA as a go-to-partner, commented STADAs CEO, Peter Goldschmidt. 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. We offer a broad range of digestive solutions that work on relieving heartburn, improving liver performance and indigestion and managing diarrhea and constipation. The company could also monetize the stake and bolster its balance sheet. 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. Sanofi, which has been carving out its consumer group into a separate business since 2019, remains wedded to the unit after a restructuring helped it return to growth last year. 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. 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. I wrote this article myself, and it expresses my own opinions. About Sanofi The company operates in three major business segments, Pharmaceuticals, Vaccines and Consumer Healthcare. 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. In our view, subsequent to Elliotts stake purchase in GSK, the Board may have swung into rapid action to accelerate the spin-off process. To their lives to undervalue the business continue to this external website, click Proceed healthcare systems essential molecules in... 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