Sector News

Sanofi to create massive standalone API producer by melding 6 sites in Europe; IPO to come

February 26, 2020
Life sciences

New CEO Paul Hudson has pledged to squeeze €2 billion out of Sanofi’s annual costs in a couple of years through a mix of methods that leans heavily on clamping down on its manufacturing budgets. It has now announced a plan that it says will not only do that but add to its top line.

The French drugmaker today trumpeted plans to create the world’s second-largest API production operation by clumping together its six API manufacturing sites in Europe and the U.K. It said the operation, with 3,100 employees, is projected to have about €1 billion in sales by 2022.

Sanofi intends to decide by then whether to float an IPO for the new French-based company on Euronext Paris. It said the company, in which it will hold a 30% share, will be debt-free to enhance its investment ability.

“With this endeavor, this new entity would be agile as a standalone company, and able to unlock its growth potential, especially in capturing new third-party sales and all the opportunities of a market growing at a pace of 6% per year,” Philippe Luscan, executive VP of Sanofi global Industrial affairs said in a statement.

Sanofi says it will include its API commercial and development operations with its API manufacturing sites Brindisi, Italy: Frankfurt, Germany; Haverhill, UK; St Aubin les Elbeuf and in Vertolaye, France and in Újpest, Hungary.

The company said that such a business would help alleviate drug shortages and balance Europe’s “heavy reliance on API sourced from the Asian region.”

That, of course, has been top of mind as COVID-19 has wreaked havoc on manufacturing in China, the world’s Walmart of API sales. It says that statistics show 60% of global API production comes from China and India.

By Eric Palmer

Source: Fierce Pharma

comments closed

Related News

May 21, 2022

As monkeypox cases emerge in US and Europe, Bavarian Nordic inks vaccine order

Life sciences

A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.

May 21, 2022

Moderna chairman Afeyan defends hiring practices after CFO debacle: report

Life sciences

Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.

May 21, 2022

Merck to pay up to $1.4B in cancer deal with Kelun, but details are scarce

Life sciences

Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”