Deal Overview. Credit Suisse London Health Care Conference To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Employing over 100,000 workers, it generates over $42 billion in annual sales and is ranked at #288 in the Fortune 500. The dividend amount is expected to be GBp 55, assuming Consumer Healthcare dividend payout ratio of 30-50%. 07 MARCH 2023. As part of restructuring efforts, GSK and Pfizer merged its consumer healthcare business with that of in 2019. With this focused attention from management, the consumer-health spin-off enjoyed a relatively smooth path to independence and a successful public listing. 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. Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally. R&D Spend: USD 13.080 billion. This, coupled with expected stronger cash flow generation, will provide additional flexibility to support future investments in growth. 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. There are certain watershed moments in every person's life that propel them to find a community. 5 Ways to Connect Wireless Headphones to TV. Self-care can enhance wellbeing, prevent disease, curb illness, and restore health. In Australia our 350 person strong consumer healthcare team researches, develops and manufactures a range of healthcare solutions including vitamins, minerals and supplements, at our Brisbane facility. 50 billion, which the drugmaker considered to undervalue the business. The Consumer Healthcare unit had two major deals in 2018, when GSK acquired Novartis' 36.5% stake in its consumer healthcare joint venture (JV) followed by a merger with Pfizer's consumer healthcare business into a JV. Start Now! Total Pharmaceuticals reported 6.434 billion, Sanofi Pasteur (Vaccines) reported 1.929 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. In the first quarter, the Specialty Care division grew at a pace of more than 7% YoY, while Vaccines fractionally grew by 0.7%. All rights reserved. Job alerts. Sanofi exchanged its Merial animal drugs business with Boehringers over-the-counter (OTC) drugs businessbasically, Sanofi picked up Boehringers consumer health business. Private part time value investor. The agreement covers the registrations, trademarks, and related commercial rights of 16 products across Europe. Is this happening to you frequently? With a diversified technology portfolio, EUROAPI is positioned as the world's leading manufacturer of small molecule API (including complex chemical synthesis molecules, biochemical molecules from fermentation and highly potent molecules). J.P. Morgan & Cie S.A.S. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven by the cough and cold, pain care, and digestive wellness categories. 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. Business is on track to demerge and list as a new company in mid-2022. Sanofi CEO's strategy blueprint may include consumer health spinoff or merger: Bloomberg | Fierce Pharma . The . My holding period is ideally "forever", even though I can't exclude to make some changes from time to time. *About Active Pharmaceutical Ingredients (APIs) The company, which is facing some notable patent expirations in the coming few years, has announced a plan to spin off its consumer healthcare business in 2023. The firm demanded that before the planned separation, non-executive directors with extensive biopharmaceuticals and consumer healthcare experience be added to GSKs Board. Partnerships with universities allow companies to apply for UK funding streams. The pharmacological and medical device division maintains J & J's name, and the corporation expects a tax-exempt spin-off. As previously announced, under the terms of the transaction, Pfizer owns a 32% equity stake in the joint venture and GSK owns 68%. Sanofi provides healthcare solutions in over 150 countries. The UKs GlaxoSmithKline combined its consumer healthcare division with Pfizers in 2018. 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Sanofi does not anticipate any impact of this divestiture to its European-based workforce. Despite volatile market conditions, Sanofi has decided to move forward with the listing process of EUROAPI. Our portfolio in cough and cold addresses the full range of symptoms so people can get back to their lives. J&J CEO Alex Gorsky said in a statement that the planned split would allow J&J to deliver new solutions for patients through biopharmaceutical and medical device innovation and technology, and provide the new consumer health company with the agility and flexibility to grow its iconic portfolio of brands and innovate new products. with a decision due by the end of the year. About Sanofi The Board of Sanofi (ENXTPA:SAN) announced the spin-off 58% stake in EuroAPI on March 17, 2022. 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. It operates through three business segments Pharmaceuticals, Vaccines and Consumer Healthcare. The separation is expected to complete by mid-2022E. 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 companys management has justified the decision for a spin-off over other alternatives such as a sale (as suggested in Elliotts letter). 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. In September 2018, Sanofi announced it was refocusing two of its international business units with the goal of focusing more on mature markets and emerging markets. We leverage the best in science, together with our world-class pharmaceutical quality standards, to deliver consumer-driven, innovative medicines and products for allergy; pain; digestive wellness; cough, cold and flu; and physical and mental wellness. 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. Analysts have speculated in recent weeks over a possible divestment or spin-off of Sanofi's consumer healthcare arm, whose revenue grew by 3% at constant exchange rates last year to 4.7 billion . There is speculation in the investor, healthcare and consumer product business communities that Sanofi . 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. Please disable your ad-blocker and refresh. 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. Final note: I am long Sanofi directly through its shares listed in Europe. Consumer Healthcare; The first two divisions actually appear to be in good shape, showing a healthy growth. 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 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. 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. Earlier this month, Sanofi announced a new strategic vision for its Consumer Healthcare division. Unveiling his strategy after joining the drugmaker from Novartis AG in 2019, Hudson said Sanofi's focus would be on vaccines, research and development and Dupixent a psoriasis medicine that the CEO projects will exceed annual peak sales of 10 billion while exiting traditional areas of expertise like cardiovascular and diabetes research. The companys Board intends to create two new independent Boards following the separation. For July 2022 GlaxoSmithKline [GSK.L] set the scene for one of the biggest listings in . Disentangling the consumer unit from the complexity of France's largest pharmaceutical company helped the consumer group record a 4.6% year-on-year rise in 2021 sales, CEO Paul Hudson said. Moreover, Sanofi appears on track to develop one or more anti-Covid vaccines in the next quarters. 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. 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 EUROAPIs shares on Euronext Paris, starting on the first day of trading. This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. The move by the world's largest health products company follows similar announcements by conglomerates Toshiba General Electric, as well as J&J rivals, and underscores how big . 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. Arguably the most well-known J&J product is its Covid-19 vaccine offering; the companys one-shot jab is the only single-dose coronavirus vaccine on the market, and is sold on a not-for-profit basis. 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. 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*. 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. (Photo by Ben STANSALL / AFP) (Photo by BEN STANSALL/AFP via Getty Images). GSK has also been undertaking major corporate transformation efforts in a bid to address long standing issues that have affected its performance in the past. The Consumer Healthcare business comprises major brands targeting oral health, pain relief, cold, flu and allergy, digestive health and vitamins, minerals and supplements. The listing will also help GSK increase its focus on its drug pipeline. In addition, GSK is continuing with the restructuring and active portfolio management of its consumer-health division ahead of the spin-off, expected by late 2022. 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. Market Intelligence STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. It is provided for information only. 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 . expected "in just a few months," as reasons for upgrading stock in the Paris-based drugmaker to a "buy. Johnson & Johnson, Bayer and Sanofi, according to Reuters, are close competitors in the consumer healthcare market. content One of Reuters sources said, Sanofi is looking at various options, joint venture, initial public offering, sale. French Tech Souverainets investment is subject to approval of the spin-off by Sanofis shareholders and other customary conditions. The yield is over 3.5% at the current prices. esgSubNav, Discover more about S&P Globals offerings. Julie Van Ongevalle Although, recently, there were some promising developments in this regard when the company agreed to sell some of its European consumer brands in an attempt to trim down its CHC product portfolio. 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. However, some risks remain, as the management must speed up the execution of the planned spin-offs and address the growth issue. Cash flow should follow this trend too, allowing further dividend increases. Sanofi Forward-Looking Statements The new head of the business Julie Van Ongevalle has unveiled a wide-ranging turnaround plan with the goal of transforming Sanofi into the OTC market leader. 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