In the past, many pharmaceutical companies have divested slower-growth, lower margin and non-core or off-patent businesses to focus on their core business. NewCo will be the global leader in OTC products with 7.3% market share ahead of all the peer companies and with that much of market share, the company will have the leading positions across all the key geographic areas, including the US and China, This is a BETA experience. Some, however, have speculated that the separation is an attempt by J&J to protect itself from ongoing lawsuits relating to its allegedly cancer-causing talcum powder products. Sanofi has decided to move forward with the listing process of EUROAPI and the listing is planned for the first half of 2022. All in all, considering both the current stock price and the possible catalysts to unlock the intrinsic value of the company, Sanofi is a buy. It is provided for information only. 1 Companys estimate based on third-party market research conducted using the annual reports published by the main industrial players in the APIs sector, public databases (including Capital IQ and Orbis) as well as interviews with market experts. Therefore, their poor performance affects the overall results: General Medicines declined by 9% and Consumer Healthcare by 14% YoY. "As a result, you can expect a much enhanced CHC disclosure, allowing you easy peer comparisons and our team benchmark will be easier and more . Morningstar analyst Damien Conover said: The firms timing is surprising, as we dont see any major catalyst for the move. The separation is expected to complete by mid-2022E. A conservative scenario should include stagnant sales in the next few years, with EPS growing mid-single digit yearly. With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer Moreover, Sanofi appears on track to develop one or more anti-Covid vaccines in the next quarters. Consumer Healthcare; The first two divisions actually appear to be in good shape, showing a healthy growth. Post transaction, Sanofi confirms that it will hold circa 30% of the share capital and voting rights of EUROAPI and will remain a long-term strategic partner, supporting EUROAPIs growth ambitions as an independent company over the coming years. Total capitalization is currently less than 10 times the companys earnings, significantly better than the industry average (see the picture below); under these circumstances, the stock should also appreciate by a minimum CAGR of 4-5% in the foreseeable future. It is provided for information only. Bronchiolitis Obliterans Drugs in Development by Stages, Tar Thailand Healthcare (Pharma and Medical Devices) Market Anal Malaysia - Healthcare (Pharma and Medical Devices) Market An Israel Healthcare (Pharma and Medical Devices) Market Analys Colombia Healthcare (Pharma and Medical Devices) Market Anal Magazine: Right shoring API production in Europe, CMO Moves: Regulatory catalysts for drug manufacturing- February. This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in France, the United Kingdom, the United States of America, Canada, Australia, Japan or any other jurisdiction. When Sanofi unveiled plans to spin off its European active pharmaceutical ingredient (API) unit back in early . Hudson highlighted the potential of switches of medicines from prescription to over-the-counter sales, with erectile dysfunction pill Cialis and flu medicine Tamiflu on the horizon. The patent stays until 2035 to 2039 (oral form). On June 23, 2021, GlaxoSmithKline plc (NYSE: GSK, $40.45, Market Cap: $101.8 billion) announced that it plans to spin-off its Consumer Healthcare division into a separately listed company. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven . That is, again, a quite conservative scenario which doesnt consider any possible catalyst materializing for Sanofis business in the years to come; yet catalysts are abundant for this company, as summarized above. Merck sold its consumer business to Bayer AG in 2014 for $14.2 billion. They are the essential molecules used in the composition and manufacture of any medicine. If you wish to continue to this external website, click Proceed. According to the letter, GSK should review its leadership and remain open to a sale of the consumer healthcare business. There are certain watershed moments in every person's life that propel them to find a community. Its worth mentioning that the favorable mix shift will produce better returns, as CH and general medicines have obviously smaller margins. Again, the sooner the better. About French Tech Souverainet ALTUVIIIO approved by the U.S. FDA: this positive event triggers impairment reversal, positively impacting 2022 IFRS net income; no change on business net income (non-IFRS), Press release: New Phase 3 data presented at WORLDSymposium reinforce Nexviazyme (avalglucosidase alfa) as potential new standard of care for all people living with late-onset Pompe disease, Media Update: New data for tolebrutinib, Sanofis investigational brain-penetrant BTK inhibitor, showed significant effect on CNS immune mediators that driveMS disease progression, Investigator Sponsored Studies and Externally Sponsored Collaboration, Access to Quality Healthcare Sanofi Global Health, Contributing to the eradication, elimination and control of some infectious diseases, Serving the needs of patients with non-communicable diseases, Development opportunity: how Sanofi empowers you, Credit Suisse London Health Care Conference, With Paul Hudson, Chief Executive Officer, Cowens 43rd Annual Health Care Conference, With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer. Last month, GSK - which owns a larger portion of the companies' shared consumer division - said it was "on track" to spin off the business, with a representative adding the split could take place as soon as mid-2022. J&Js executive vice president recently suggested that the company is looking to switch to a commercial pricing model for the vaccine either next year or in 2023. Investigator Sponsored Studies and Externally Sponsored Collaboration, Access to Quality Healthcare Sanofi Global Health, Contributing to the eradication, elimination and control of some infectious diseases, Serving the needs of patients with non-communicable diseases, Development opportunity: how Sanofi empowers you. Is this happening to you frequently? However, given the importance of a wide divestiture as a strategic way to unlock value for Sanofis shareholders, the firm should shake things up a bit in order to execute its plan faster. At CER, the growth was 15.3% and 5.3% respectively. "We don't worry about what the other companies do, we worry about what we're doing and we're pleased with what's going on in our consumer business.". Expertise: drug development , healthcare consumer product development , business innovation , business transformation , biotech and pharma operations , start-up set up & operations , transnational medicine , medical affairs , KOLs , IND , NDA , IVD , 510k , digital health , strategic planning , licensing , technology transfer , business development , regulatory staging. The financial leverage is quite low too, which is a positive sign for the strength of the balance sheet and it could boost Sanofis M&A activity in the years to come, which is always an important option for big pharma companies. The CEO's review of the consumer unit coincided with a trend for pharmaceutical giants like Johnson & Johnson and GlaxoSmithKline PLC to simplify their diversified structures and double-down on lucrative franchises, such as cancer and rare disease, driven by pioneering science, data and technological advances. "We're going to build an industry-leading and sustainable pipeline," the CEO said. Any distribution of the Shares may be subject to specific legal or regulatory restrictions in certain jurisdictions. Moreover, the failure to come out with a COVID-19 vaccine despite being one of the largest vaccine producers, may have led to investor disappointment. However, it looks like that les grandes manoeuvres, aimed at the realization of this project, will proceed at a slow speed. As a result, French Tech Souverainet will become a long-term reference shareholder of EUROAPI and will be represented by two non-executive members on EUROAPI's Board of Directors, including Benjamin Paternot and another member to be determined. Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally. The gut is often referred to as the bodys second brain. The listing will also help GSK increase its focus on its drug pipeline. investor.relations@sanofi.com, France:+ 33 1 53 77 45 45 |U.S.:+ 1 908 981 5560. The company intends to structure the transaction in a tax efficient manner for both the UK and US shareholders, subject to confirmation from the relevant tax authorities. Therefore, investors should approach this investment with a long-term mindset. Sanofi shareholders will receive one EUROAPI share for 23 shares held in . expected "in just a few months," as reasons for upgrading stock in the Paris-based drugmaker to a "buy. Global markets live: GM, Pfizer, Exxon, UBS, Boeing EUROAPI Announces Resignation of Corinne Le Goff as an Independent Member on the Board .. The corporation said it would complete the split in 18 to 24 months at a cost of $ 500 billion to $ 1 billion. Our brands are trusted across the world, and some have been on the market for over 50 years. GSK owns 68% holding in the JV while Pfizer owns 32%. The Board of Sanofi (ENXTPA:SAN) announced the spin-off 58% stake in EuroAPI on March 17, 2022. Jones Day (France) acted as legal advisors to Sanofi. By 2026, cash generated from operations for New GSK is expected to exceed 10 billion. Haleon emerges from GSK consumer healthcare spin-off. . Nicolas Obrist|+ 33 6 77 21 27 55 |nicolas.obrist@sanofi.com, Investor Relations There is speculation in the investor, healthcare and consumer product business communities that Sanofi . Total Pharmaceuticals was up 1.5%, whereas Vaccines was down 9.8%, with total net sales down 1.1%. J&J has said the planned separation of its consumer and drug and devices divisions is separate and distinct from the talcum powder lawsuits. The company was formed by a merger between Glaxo Wellcome plc and SmithKline Beecham plc. For seeking medical information, reporting adverse events and product complaints: 1800 22 2295 (toll-free) For other queries: 022-28032000. Then there is the funding support available. I have no business relationship with any company whose stock is mentioned in this article. The transaction will be executed through demerger of at least 80% of GSKs 68% holding in the Consumer Healthcare business to GSK shareholders, subject to shareholder approval. "It's very significant, we are really reallocating our cost base towards innovation on science," the CFO said. And Scottish universities have a track record of securing UK funding. Forward-looking statements are statements that are not historical facts. Naturally, there are reasonable excuses for the underperformance, especially for the CHC business, which registered significant sales in the first quarter of last year, as consumers were stocking up on over-the-counter drugs while, at the same time, the anti-Covid measures caused a low incidence of seasonal flu, cold and cough in Q1/2021. The risks and uncertainties also include the uncertainties discussed or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under Risk Factors and Cautionary Statement Regarding Forward-Looking Statements in Sanofis annual report on Form 20-F for the year ended December 31, 2021. By clicking the Download Free Whitepaper button, you accept the terms and conditions and acknowledge that your data will be used as described in the Scotland Health Tech privacy policy. without the spin-off) from 2022, following anticipated lower growth in 2021 due to currency weaknesses and . We project annual organic growth of 4% on a going-concern (GC) basis (i.e. For July 2022 GlaxoSmithKline [GSK.L] set the scene for one of the biggest listings in . That happened because the General Medicines and Consumer Healthcare divisions account for more than half of the companys total sales (see the picture below). Active Pharmaceutical Ingredients (APIs) are the chemical or biological substances in a medicine that have a therapeutic effect. (Photo by Ben STANSALL / AFP) (Photo by BEN STANSALL/AFP via Getty Images). By Mark Terry. Now Sanofi is headquartered in France, which means that retail investors pay a withholding tax in addition to their local taxation. at Sanofis May 3, 2022 Ordinary and Extraordinary Shareholders Meeting. The rationale is that the company, whose innovation engine has been strongly reliant on its relationship with Regeneron Pharmaceuticals, would be able to invest the proceeds into more internal research. "If the GlaxoSmithKline Consumer Health spinoff goes well, we believe it is likely that Sanofi could spin off its consumer health business as well, which is a reasonable extension of the internal separation that is ongoing," HSBC analyst Steve McGarry said in a Nov. 1 note. The new Primary Care unit was to focus on mature markets. Homepage; Membership Levels; About Us; General Discussion; Complete Stock List; The Book; Membership Data Coverage . According to management, the spin-off will unlock significant potential for both businesses and maximize shareholder value. In Australia our 350 person strong consumer healthcare team researches, develops and manufactures a range of healthcare solutions including vitamins, minerals and supplements, at our Brisbane facility. We offer a broad range of digestive solutions that work on relieving heartburn, improving liver performance and indigestion and managing diarrhea and constipation. In 2017, Sanofi completed a swap announced in June 2016, with Germanys Boehringer Ingelheim. Surface Studio vs iMac - Which Should You Pick? . Today marks a major milestone for EUROAPI, a leading European company dedicated to the development, production and marketing of active pharmaceutical ingredients* (API), as Sanofis Board of Directors unanimously proposed, on March 17th, to submit to its shareholders the distribution of circa 58% of the share capital of EUROAPI. Partnered with business leaders to facilitate the Retired after 24+ year career with J&J. Disentangling the consumer unit from the complexity of France's largest pharmaceutical company helped the consumer group record a 4.6% year-on-year rise in 2021 sales, CEO Paul Hudson said. The consumer arm comprised of million- and billion-dollar brands and offering products such as mouthwash, shampoo, and skincare will form a new publicly traded company in the next 18 to 24 months. Sanofi Pharma; Sanofi Genzyme; Sanofi Pasteur; Our data sharing commitments; Managed Access Programs (MAPs) . These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. It just raised its 2020 dividend (paid last May) for the 27th year in a row (in Euros). Partnerships with universities allow companies to apply for UK funding streams.
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