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

November 28, 2021

Founder-led biotech is making space for ideas—and diverse leaders—where it didn’t exist before

Life sciences

Decades ago, the founder-led biotech was rare and considered the tougher path to follow. Now there is a trend of founder-led biotechs that have risen in prominence in recent years, going from startup to well known with lightning speed. Scientists-turned C-suite occupants know their technology inside out. They’ve got credibility both at the bench working with their research teams and in the boardrooms selling their future products.

November 28, 2021

Pfizer to become $100B behemoth next year thanks to COVID-19 drug and vaccine: analyst

Life sciences

Pfizer’s revenue could reach $101.3 billion in 2022, with major contributions coming from the company’s BioNTech-partnered COVID vaccine and an antiviral therapeutic that has shown stellar clinical data, SVB Leerink analyst Geoffrey Porges projected in a Monday note to clients.

November 28, 2021

GlaxoSmithKline takes aim at sick pay access inequities with microgrant program and new campaign

Life sciences

In a survey commissioned by GlaxoSmithKline’s consumer health division of 2,000 working people in the U.S., almost 70% admitted to clocking in while sick, often because they couldn’t afford to lose a day’s pay. Black and Latina women were 10% more likely than white women to shun taking sick time for fear of fallout from their boss, according to the company’s 2021 Temperature Check Report.

Send this to a friend