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Sanofi considers sale, spin-off, joint venture of consumer healthcare unit

Nov 25, 2019

Sanofi is considering a joint venture, spin-off or outright sale of its consumer healthcare unit, according to Reuters sources.

The consumer healthcare arm's revenue grew by 3 percent last year to hit $5.21 billion. According to sources, the drugmaker is talking to investment banks about various options but have not made a decision. One source told Reuters that forming a consumer healthcare joint venture with a large peer would allow Sanofi to benefit from cost cuts and later reap a higher valuation in a possible IPO or sale.

In early 2017, Sanofi closed a deal with Boehringer Ingelheim that included an exchange of Sanofi’s animal health business (Merial) and Boehringer Ingelheim’s consumer healthcare business — a deal that increased Sanofi’s consumer healthcare market share to about 4.6 percent.

Sanofi will present a new strategic plan next month.

Read the Reuters coverage