+33 (0)1 53 77 40 00, 46 avenue de la Grande Arme Executive Summary. Sanofi is a long-term player. Published: Nov 21, 2019 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. 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 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. Therefore, their poor performance affects the overall results: General Medicines declined by 9% and Consumer Healthcare by 14% YoY. Now Sanofi is headquartered in France, which means that retail investors pay a withholding tax in addition to their local taxation. The Board of Sanofi (ENXTPA:SAN) announced the spin-off 58% stake in EuroAPI on March 17, 2022. 2021 position: 10. 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. 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. 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 company has also claimed that some of its major shareholders support the spin-off deal. However, the French dividend tax for foreign individuals amounts to just 12.8%. 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. Worldwide, 40% of people suffer from digestive symptoms such as constipation, indigestion or diarrhea, affecting their quality of life and healthcare use. Sanofi assumes no responsibility for the information presented on this website. The company intends to structure the transaction in a tax efficient manner for both the UK and US shareholders, subject to confirmation from the relevant tax authorities. In addition to its highly diversified customer base of approximately 530 customers, EUROAPI benefits from a strong and long-term customer relationship with Sanofi, which represented nearly half of EUROAPIs revenues in 2021. 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. 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. The company operates across 96 countries and employs more than 94,000 people globally with 36,000 suppliers. Sanofi's CDMO spinoff set for next month as new group targets 2022 revenues of 1B. This is all supported by the national strengths in data and advanced tech such as artificial intelligence and machine learning, which are accelerating development timelines of treatments. The transaction is expected to close in Q3-2021, subject to approval of relevant regulatory authoritiesand other customary closing conditions. The unit's revenue grew by 3% at constant exchange rates in . 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. All rights reserved. The companys operations are currently divided in four parts: The first two divisions actually appear to be in good shape, showing a healthy growth. Paris, March 18 2022. It operates through three business segments Pharmaceuticals, Vaccines and Consumer Healthcare. Total Pharmaceuticals was up 1.5%, whereas Vaccines was down 9.8%, with total net sales down 1.1%. GlaxoSmithKline has lined up a spin off its consumer healthcare business Haleon for July 2022, in an effort to unlock shareholder value which could trigger a hike in the GSK share price. This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in France, the United Kingdom, the United States of America, Canada, Australia, Japan or any other jurisdiction. Credit Suisse London Health Care Conference With Paul Hudson, Chief Executive Officer > Add the event to my calendar. The net debt/adjusted EBITDA leverage ratio is expected be less than 2x. Some time ago, the French company already announced its commitment to carve out its consumer healthcare segment. The move has been in the works for several months. Post separation, the stub unit will operate as a biopharma company concentrated on specialty medicines and vaccines, while the spin-off unit will focus on category-leading power brands. Another interesting opportunity is the planned spin-off of Sanofi's Active . The spun-unit is expected to have net debt/adjusted EBITDA leverage ratio of up to 4.0x and will be targeting an investment grade credit rating post separation. 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. . Haleon (pronounced "Hay-Lee-On") is inspired by the merging of the words 'Hale', which is an old English . This situation is changing rapidly and additional impacts may arise of which we are not currently aware and may exacerbate other previously identified risks. We are an innovative global healthcare company, driven by one purpose: we chase the miracles of science to improve peoples lives. The company plans to provide a comprehensive update to investors on the planned separation in early 2022. I wrote this article myself, and it expresses my own opinions. 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 . The yield is over 3.5% at the current prices. GSK's consumer health spinoff Haleon will make its big debut in just over a week but with some serious debt in tow, according to the company. Detail: Visit URL Category: Business View Health Other commercial successes in J&Js pharma portfolio include inflammatory disease therapy Stelara, which reaped $7.7bn in revenue last year; monoclonal antibody Darzalex for the treatment multiple myeloma; lymphoma and chronic graft-versus-host disease drug Imbruvica, developed with AbbVie; and antibody-based plaque psoriasis treatment Tremfya. The French pharma giant first announced its intentions to spin off the API business in February.The plan, as the company said at the time, would combine Sanofi's API . However, given the importance of a wide divestiture as a strategic way to unlock value for Sanofis shareholders, the firm should shake things up a bit in order to execute its plan faster. 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. 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. If you wish to continue to this external website, click Proceed. investor.relations (at) sanofi.com. About French Tech Souverainet We believe the separation could be a trigger for driving improved share price appreciation, given that the stock has underperformed peers historically. 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. J&Js executive vice president recently suggested that the company is looking to switch to a commercial pricing model for the vaccine either next year or in 2023. Credit Suisse London Health Care Conference The consumer arm comprised of million- and billion-dollar brands and offering products such as mouthwash, shampoo, and skincare will form a new publicly traded company in the next 18 to 24 months. Landmark New England Journal of Medicine publication reinforces potential of GSK's respiratory syncytial virus older adult vaccine candidate. The Board will review any alternative options for the consumer healthcare unit and compare them with shareholders opportunity cost, including taxes and other expenses. A conservative scenario should include stagnant sales in the next few years, with EPS growing mid-single digit yearly. 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. . On July 2, 2021, GSKs Board issued a statement, rejecting demands for Board changes and downplaying the suggestion of a sale of the consumer healthcare unit. Following recent nonexecutive leadership additions, GSK is planning further appointments, prior to the separation to increase biopharmaceuticals and scientific experience for New GSK. We project annual organic growth of 4% on a going-concern (GC) basis (i.e. 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. The New Co. (Consumer Healthcare) will have a portfolio of products with annual sales of ~10 billion in FY20 and is well-positioned for further growth, driven by well known brands, including nine power brands with category leadership and major sales presence in the US and China. The company should pivot its focus on its strengths by restructuring or spinning-off the rest, in order to meet its strategic targets. Our brands are trusted across the world, and some have been on the market for over 50 years. 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. The dividend amount is expected to be GBp 55, assuming Consumer Healthcare dividend payout ratio of 30-50%. Merck sold its consumer business to Bayer AG in 2014 for $14.2 billion. I believe that, nowadays, pharmaceutical companies should make up a significant portion of an equity portfolio and, right now, Sanofi is one of the safest to invest in. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven . Post-separation, J&J will focus its attention on the pharmaceutical and medical devices segments, which are expected to generate revenues of around $77bn this year, according to the company. Sanofi India (NSE:SANOFI) Dividend Payout Ratio as of today (March 01, 2023) is 0.00. Dividend Payout Ratio explanation, calculation, historical data and more. 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 . 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. 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*. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. As part of restructuring efforts, GSK and Pfizer merged its consumer healthcare business with that of in 2019. You may opt-out by. All rights reserved. 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. Transaction is expected to close on May 6, 2022. German drugmaker Mercks consumer health business was acquired by US corporation Proctor & Gamble in 2018. I have no business relationship with any company whose stock is mentioned in this article. Boehringer paid Sanofi 4.7 billion in cash. 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. Patents; Patient Support Services; Resources for Healthcare Providers; Colorado Disclosure; Vermont Disclosure; Our Responsibility. 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 . By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. 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. 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. For July 2022 GlaxoSmithKline [GSK.L] set the scene for one of the biggest listings in . 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