Sanofi Plans to Split Consumer-Healthcare, Pharma Businesses -- Update
October 27 2023 - 1:35AM
Dow Jones News
By Adria Calatayud
Sanofi plans to split its consumer-healtchare and pharmaceutical
operations, making it the latest big drugmaker to sharpen its focus
on prescription medicines by offloading adjacent businesses.
The French company outlined the plan on Friday as part of a
strategic update that includes increased investment in its pipeline
and a cost-savings program.
Sanofi said it is evaluating potential separations options, but
believes that the most likely path would be through a capital
markets transaction, by creating a listed entity headquartered in
France. The split could take place in the fourth quarter of 2024 at
the earliest, it said.
The move will allow Sanofi to increase its focus on innovative
medicines and vaccines, the company said. The split will create two
entities and will enable each to pursue its own strategy, it
said.
Sanofi was one of the few big pharma companies that still housed
innovative drugs and consumer-healthcare operations under the same
roof.
Johnson & Johnson earlier this year spun off consumer-health
business Kenvue, which owns brands such as Band-Aid and Tylenol,
and GSK last year separated its Haleon consumer arm. Other pharma
giants such as Novartis and Pfizer made similar moves in recent
years.
The plan remains subject to market conditions and consultation
with social partners. Sanofi's consumer-healthcare business is
present in 150 countries and employs more than 11,000 people, it
said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 27, 2023 02:20 ET (06:20 GMT)
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