Sanofi announced its intention to separate its consumer health care business, with an eye on enabling greater management focus and resource allocation to its biopharma business.
As part of what CEO Paul Hudson is calling a "new chapter" of the company's multi-year 'Play to Win' strategy, the French drugmaker will spin out the consumer health unit no earlier than the fourth quarter of 2024, via the creation of a publicly listed entity headquartered in France.
Rumors began swirling back in November 2019, after Reuters revealed that Sanofi was considering a joint venture, spin-off or outright sale of its consumer health unit. A month later, CEO Paul Hudson confirmed the rumors when he unveiled the company's new strategy for growth, which later became known as the 'Play to Win' strategy.
As part of the recent update, Sanofi also shared plans to increase its R&D investments. “This is an exciting and important moment for Sanofi’s R&D journey, as we double down on our investments from a position of strength in order to unlock our pipeline’s full potential," said Houman Ashrafian, head of R&D, Sanofi.
The move to streamline is in line with the strategies of other large pharma companies, such as J&J, which completed the spin off of its consumer health brand into a new independent company named Kenvue back in August.