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. 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. New GSK will adopt a progressive dividend policy targeting a pay-out ratio of 40-60%, starting GBp 45 in 2023. 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. Total Pharmaceuticals reported 6.434 billion, Sanofi Pasteur (Vaccines) reported 1.929 billion. I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. The company expects a strong drug pipeline, backed by strong research and development expenses to drive sustainable, long-term growth for the pharmaceutical business. "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 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. We are an innovative global healthcare company, driven by one purpose: we chase the miracles of science to improve peoples lives. 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. Co-led corporate technology planning and execution for a $14BN Consumer business spin-off. 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. 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. Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally. Sanofi shareholders will receive one EUROAPI share for 23 shares held in the parent company, and Sanofi plans to keep a 30% stake in EUROAPI. Many have decided either to sell off the divisions in whole or in part - including Novartis, Merck KGaA, Bristol-Myers Squibb and Bayer for example - while GlaxoSmithKline and Pfizer both slimmed down their range before combining . STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. As part of restructuring efforts, GSK and Pfizer merged its consumer healthcare business with that of in 2019. Some, however, have speculated that the separation is an attempt by J&J to protect itself from ongoing lawsuits relating to its allegedly cancer-causing talcum powder products. Please disable your ad-blocker and refresh. Brentford, U.K.-based GSK, meanwhile, will spin out its consumer unit by mid-year, after turning down three bids from consumer goods giant Unilever PLC reaching 50 billion, which the drugmaker considered to undervalue the business. Merck & Co's strategy to spin off its older drugs and biosimilars into a new stand-alone business will be closely watched by other pharma companies considering the same move, analysts have said. 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 NewCo will be a global Consumer Healthcare company with a wide-range category of consumer health brands which includes GSKs Voltaren, Sensodyne, and Panadol and PFEs Caltrate, Centrum, and Advil. with a decision due by the end of the year. 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. The risks and uncertainties also include the uncertainties discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under Risk Factors and Cautionary Statement Regarding Forward-Looking Statements in Sanofis annual report on Form 20-F for the year ended December 31, 2021. Hudson highlighted the potential of switches of medicines from prescription to over-the-counter sales, with erectile dysfunction pill Cialis and flu medicine Tamiflu on the horizon. <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. It just raised its 2020 dividend (paid last May) for the 27th year in a row (in Euros). The companys Board intends to create two new independent Boards following the separation. We believe the deteriorating performance at the largest segment may have triggered the need to refocus on the biopharma business. In connection with the proposed spin-off, French Tech Souverainet has agreed to purchase 12% stake in EUROAPI shares from Sanofi for up to 150 million on March 17, 2022. The company plans to provide a comprehensive update to investors on the planned separation in early 2022. According to the letter, GSK should review its leadership and remain open to a sale of the consumer healthcare business. All in all, even though the stagnant divisions are at the moment predominant, that story is changing. 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. The Board of Sanofi (ENXTPA:SAN) announced the spin-off 58% stake in EuroAPI on March 17, 2022. All rights reserved. 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. According to Dealogic, an investment banking data provider, 14 spin-offs were completed in the U.S. last year, of which two were healthcare: Bioverativ and . "Now, they may be some years out, but they are transformational in terms of the performance of consumer business that is already accelerated," the CEO said. The company has also claimed that some of its major shareholders support the spin-off deal. As a health journey partner, we aim to empower consumers to live healthier and fuller healthier lives through a full range of holistic pain management solutions. As part of Sanofi's 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. Sanofi assumes no responsibility for the information presented on this website. According to news reports, in April 2021, activist investment firm Elliott Management Corp. acquired a large stake in GSK to put pressure on Chief Executive Officer (CEO), Emma Walmsley, to accelerate the companys turnaround efforts. 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. 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. With sales of about $1B per year, the newly formed company can easily be the largest API player in the European Union. It is provided for information only. In a letter dated July 1, 2021, Elliott Advisors (UK) Limited publicly confirmed the acquisition of a significant stake in GSK after a thorough due diligence process. There is even a name for it: EUROAPI. "We don't worry about what the other companies do, we worry about what we're doing and we're pleased with what's going on in our consumer business.". 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 Board will review any alternative options for the consumer healthcare unit and compare them with shareholders opportunity cost, including taxes and other expenses. Executive Summary. Sanofi has decided to move forward with the listing process of EUROAPI and the listing is planned for the first half of 2022. Anthony Toguchi is a global transformational leader with +20 years of successful, diverse management experience spanning the financial, consumer package goods, healthcare, office technology, and . Notice to holders of American Depositary Receipts (ADRs) A conservative scenario should include stagnant sales in the next few years, with EPS growing mid-single digit yearly. commercializing best-seller drugs. 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. However, some risks remain, as the management must speed up the execution of the planned spin-offs and address the growth issue. | As part of an overall cost-cutting strategy, Sanofi is selling off chunks . JUNE 28, 2021. Sanofi will look to offload around 150 OTC brands as part of a radical overhaul of its Consumer Healthcare operation. 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. If you wish to continue to this external website, click Proceed. Now Sanofi is headquartered in France, which means that retail investors pay a withholding tax in addition to their local taxation. J & J stocks, which are a portion of the Dow Jones Manufacturing Average (.DJI), rose 1.5%. I am not receiving compensation for it (other than from Seeking Alpha). content Get Your 7-Day Free Trial! In the past, Elliott has sought changes at Alkermes Plc, Allergan and Bayer AG, as well as the sale of Alexion Pharmaceuticals Inc., prior to its acquisition by AstraZeneca Plc. The company's consumer healthcare unit, a maker of over-the-counter drugs (OTC), lifted sales by 9.1% to 1.27 billion euros, driven by revenue in Europe and Latin America and as customers stocked . > 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 : Welcome to Sanofi Consumer Healthcare. -. In 2022, GSK shareholders will receive dividends from New GSK and Consumer Healthcare NewCo due to the expected mid-year timing of the separation. Sanofi is listed on EURONEXT: SAN and NASDAQ: SNY. Sanofi (XPAR:SAN) Dividend Payout Ratio as of today (March 01, 2023) is 0.00. Dividend Payout Ratio explanation, calculation, historical data and more Through this transaction, Sanofi is giving its shareholders the opportunity to take part in the success of a leading player in the API market with strong ambitions to become a global champion on a growing and dynamic market, and due to be listed on the regulated market of Euronext Paris. Final note: I am long Sanofi directly through its shares listed in Europe. 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. Sanofi CEO's strategy blueprint may include consumer health spinoff or merger: Bloomberg | Fierce Pharma . Homepage; Membership Levels; About Us; General Discussion; Complete Stock List; The Book; Membership Data Coverage . 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. Drawing on more than 150 years of experience in the growing API market, EUROAPI has a network of six production sites, all of which are located in Europe, and delivers around 200 APIs to approximately 530 customers in over 80 countries. An IPO could come as soon as 2022. As previously announced, under the terms of the transaction, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%. The transaction with STADA ensures that these products will continue to be available to consumers. 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. 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 . In connection with the proposed spin-off, French Tech Souverainet has agreed to purchase The stub entity will retain up to 20% holding into the spin entity as a short-term investment and monetize the same at an opportune moment to strengthen the balance sheet and finance pension liabilities. 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. By 2026, cash generated from operations for New GSK is expected to exceed 10 billion. 2021 position: 10. By Mark Terry. (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. 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. Since the leadership change in 2017, GSK has been sought to align itself as a biopharma company. 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%. The deal increased Sanofis consumer healthcare market share to about 4.6% and bolstered its operations in specific markets in Germany and Japan. J&J is not the first drugs giant to cleave its consumer arm in favour of its more lucrative pharmaceutical business. (Photo by Ben STANSALL / AFP) (Photo by BEN STANSALL/AFP via Getty Images). 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. Sanofi does not anticipate any impact of this divestiture to its European-based workforce. Job alerts. In 2021, Sanofi announced several critical steps in this journey with the unveiling of the creation of EUROAPI and the appointment of Karl Rotthier as its CEO in January, the appointment of Viviane Monges as Chair of the Supervisory Board in July and the finalization of the carve-out in December 2021. Sanofi assumes no responsibility for the information presented on this website. All rights reserved. All in all, considering both the current stock price and the possible catalysts to unlock the intrinsic value of the company, Sanofi is a buy. 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