Sector News

Thwarted buyer Sanofi tries its hand at a $2.1B European generics sale

March 9, 2017
Life sciences

After losing out on two sizable deals, Sanofi CEO Olivier Brandicourt recently said his company wasn’t looking to make any big M&A moves right away. Instead, Sanofi might be looking to slim down by prepping the sale of its European generics unit, according to a new report.

The French drugmaker wants to hire advisers by the end of this month and conduct an auction after the summer for a deal estimated to be worth about €2 billion ($2.1 billion), sources told Reuters.

News of a potential sale comes after Brandicourt last month said his company is “not in a hurry to do M&A.” That represented a significant change from the company’s actions over the last year.

Sanofi made several moves during the frenzied Medivation deal fray, only to be beaten out by Pfizer with its $14 billion offer. Then, Sanofi was reportedly in talks to buy Actelion, but that company ultimately went to Johnson & Johnson for $30 billion.

Since joining Sanofi in 2015, Brandicourt has kicked off a strategic review and embarked on a strategy to build around five global business units: general medicines and emerging markets, specialty care, diabetes and cardiovascular, vaccines outfit Sanofi Pasteur and animal health group Merial.

Later, though, the drugmaker put Merial and the European generics business on the chopping block and kicked off a $1.6 billion cost-cutting effort.

Last June, the company agreed on an asset swap with Boehringer Ingelheim to send away the animal health business, valued at €11.4 billion though the deal. Sanofi picked up Boehringer’s consumer health assets in a move to bolster its offerings in a business it has targeted for growth.

Meanwhile, plenty of M&A action is taking place elsewhere around the generics industry, too. Squeezed by a wave of consolidation and price erosion, Impax Labs is currently weighing its strategic options and Germany’s Stada is in talks with three prospective buyers.

By Eric Sagonowsky

Source: Fierce Pharma

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach