Total Pharmaceuticals reported 6.434 billion, Sanofi Pasteur (Vaccines) reported 1.929 billion. In October, J&J sparked controversy by using a bankruptcy manoeuvre to avoid paying out for the tens of thousands of claims made against it. We believe the deteriorating performance at the largest segment may have triggered the need to refocus on the biopharma business. 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. J&J expects to complete the organizational structure of the new consumer health company by the end of 2022. 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. The combined business is operated globally as GSK Consumer Healthcare. The earnings report showed what GSK called "strong sales" in its biopharma and consumer healthcare operations, to the tune of 7.1 billion British pounds (about $8.9 billion) and 2.6 billion . To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Cowen's 43rd Annual Health Care Conference With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer > Add the event to my calendar Our brands are trusted across the world, and some have been on the market for over 50 years. I wrote this article myself, and it expresses my own opinions. investor.relations@sanofi.com, France:+ 33 1 53 77 45 45 |U.S.:+ 1 908 981 5560. Prioritization will become increasingly important going forward, Hudson told reporters. Moreover, the remaining 20% stake in the spun-off unit post deal completion offers GSK with the opportunity to benefit from strong performance at the spun-off unit. Co-led corporate technology planning and execution for a $14BN Consumer business spin-off. If you wish to continue to this external website, click Proceed. All rights reserved. 12% in EUROAPI shares from Sanofi for up to 150 million, with the acquisition price to be determined based upon the thirty day volume weighted average trading price (VWAP) of EUROAPIs shares on Euronext Paris, starting on the first day of trading. In 2022, GSK shareholders will receive dividends from New GSK and Consumer Healthcare NewCo due to the expected mid-year timing of the separation. Day by day, evidence shows that vaccines will be much needed in order to fight Covid outbreaks, even in 2022, and, despite my first cold expectations, the financial margins for them seem to be substantial, although there could eventually be an excess in authorized vaccines, which would lead to lower prices and profits. EUROAPI develops, manufactures, markets and distributes APIs and intermediates used in the formulation of medicines for human and veterinary use, both from originators and generics, through its API Solutions business and CDMO activities. Johnson & Johnson, Bayer and Sanofi, according to Reuters, are close competitors in the consumer healthcare market. Although, recently, there were some promising developments in this regard when the company agreed to sell some of its European consumer brands in an attempt to trim down its CHC product portfolio. Disclosure: I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. Building on this foundation, Sanofi delivered a resilient underlying performance in the third quarter with strong sales in Specialty Care, largely driven by the continued outstanding performance of Dupixent. We have extensive lines of prescription medicines and . Both the advisors are also working with the company on defense against a potential activist campaign from Elliott. A conservative scenario should include stagnant sales in the next few years, with EPS growing mid-single digit yearly. Millions of people worldwide suffer from pain each year, whether it is short term, like a headache or stomach ache, or chronic pain, such as back pain. Sanofi assumes no responsibility for the information presented on this website. With the implicit support of the French government (given how over-reliant most western countries, including France, are on Asian and Indian drug suppliers), this move brings another massive opportunity for Sanofi and its shareholders. Again, the sooner the better. * This saved time would otherwise be spent on unnecessary waiting, travel and consultations in primary care or emergency department settings. 50 billion, which the drugmaker considered to undervalue the business. GSK cited the opportunity cost from the immense profit and cash generation potential of the consumer healthcare unit as well as higher expenses in the form of taxes in case of a sale as compelling reasons for the spin-off. She is particularly interested in stories about AI, antibiotic resistance, and global health equality. At that time, Sanofi's three remaining global business units, Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare weren't changing. Copyright 2023 Surperformance. The company focuses on a three-pillar strategy consisting of generics, specialty pharma and non-prescription consumer healthcare products. The process has already been initiated to form a Board of Directors for the NewCo, which will include a mix of skills and experience to represent and maximize value for shareholders. Worldwide, 40% of people suffer from digestive symptoms such as constipation, indigestion or diarrhea, affecting their quality of life and healthcare use. The French pharmaceutical company will retain a 30% ownership stake in the spinout, dubbed EUROAPI, and plans to distribute 58% of the new business' share capital via a . It planned to form a new Primary Care global business unit that would combine the product portfolios from its existing Diabetes and Cardiovascular (DCV) unit with Established Products. In addition, GSK is continuing with the restructuring and active portfolio management of its consumer-health division ahead of the spin-off, expected by late 2022. 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. Further details regarding the specifics of the distribution, including the parity, and the timetable of the spin-off will be set forth in EUROAPIs French prospectus. Notice to holders of American Depositary Receipts (ADRs) 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. Sanofi (XPAR:SAN) Dividend Payout Ratio as of today (March 01, 2023) is 0.00. Dividend Payout Ratio explanation, calculation, historical data and more During the JV formation, GSK had indicated that the unit would be spun-off as a separate company within the next three years, and we think the recent announcement is a step in that direction. 07 MARCH 2023. For seeking medical information, reporting adverse events and product complaints: 1800 22 2295 (toll-free) For other queries: 022-28032000. However, net sales took a dive in Q1, declining by roughly 4.6% YoY (reported). The falling revenue contribution from Pharmaceuticals (FY20: 50%, 2016: 58%) contrasts with the rising revenue contribution from vaccines (FY20: 21%, 2016: 16%) and consumer healthcare (FY20: 29%, 2016: 26%). There is even a name for it: EUROAPI. Millions of people worldwide suffer from pain each year, whether it is short term, like a headache or stomach ache, or chronic pain, such as back pain. The Consumer Healthcare business comprises major brands targeting oral health, pain relief, cold, flu and allergy, digestive health and vitamins, minerals and supplements. with a decision due by the end of the year. Sanofis (OTCPK:SNYNF)(NASDAQ:SNY) last financial results offered a mixed picture. If you wish to continue to this external website, click Proceed. a historic slump in over-the-counter sales for cough and cold medicines across the industry in 2020 as a result of social distancing and other pandemic-related regulations. The listing will also help GSK increase its focus on its drug pipeline. The French drugmaker spent more than 12 billion on acquisitions in the last two years to bolster the group's pipeline of early medicines, said CFO Jean-Baptiste de Chatillon, who added that the company will ramp up R&D spending by around half a million euros in 2022. By Mark Terry. Sandrine Guendoul|+ 33 6 25 09 14 25 |sandrine.guendoul@sanofi.com In line with its Play to Win strategy aiming at simplifying its operations, Sanofi announced in February 2020 its ambition to create a new world leader in APIs to secure significant manufacturing and supply capacities that are critical for patients in Europe and beyond, in a context of increasing shortage of medicines essential to patient care. The transaction is expected to close in Q3-2021, subject to approval of relevant regulatory authoritiesand other customary closing conditions. Elsewhere, Sanofi said it expects trials of the COVID-19 shot being developed in conjunction with GSK to read out later this quarter, while a late-stage vaccine for respiratory syncytial virus developed with British COVID-19 vaccine-maker AstraZeneca PLC is expected to be filed with regulators this year. With this focused attention from management, the consumer-health spin-off enjoyed a relatively smooth path to independence and a successful public listing. Globally, self-care saves people around 11 billion hours. Our high-quality products are available in more than 5,780 pharmacies. Credit Suisse London Health Care Conference "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. Persimmon Shares Tank 11%, Builder Becomes FTSE 100s Biggest Faller. The reality in business is that some things are more important than others and we have to understand where we must win.. Sanofi moves forward with EUROAPI listing on Euronext Paris. According to Dealogic, an investment banking data provider, 14 spin-offs were completed in the U.S. last year, of which two were healthcare: Bioverativ and . In addition to its highly diversified customer base of approximately 530 customers, EUROAPI benefits from a strong and long-term customer relationship with Sanofi, which represented nearly half of EUROAPIs revenues in 2021. The pharmacological and medical device division maintains J & J's name, and the corporation expects a tax-exempt spin-off. By downloading this Whitepaper, you acknowledge that we may share your information with our white paper partners/sponsors who may contact you directly with information on their products and services. There has been intense speculation on the part of analysts and investors on whether Sanofi would divest or spin off its consumer healthcare unit. Incorporated in 1999, GlaxoSmithKline plc (GSK), a British company based in United Kingdom. Executive Vice President, Consumer Healthcare, on International Self-Care Day 2021. Start Now! Design Paris-based Sanofi is reportedly considering either a joint venture or a sale of its consumer healthcare division. The companys consumer health unit is worth about $30 billion and one of the companys options is an initial public offering (IPO). With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer commercializing best-seller drugs. While cough is the most common symptom of a cold, people can experience up to five symptoms during the life cycle of a cold. The unit's revenue grew by 3% at constant exchange rates in . I have no business relationship with any company whose stock is mentioned in this article.
Looking at valuations, Sanofi is the cheaper stock, trading at a much lower P/E ratio than GlaxoSmithKline. Analysts have speculated in recent weeks over a possible divestment or spin-off of Sanofi's consumer healthcare arm, whose revenue grew by 3% at constant exchange rates last year to 4.7 billion . We believe that empowering individuals, the community, and healthcare professionals to promote and practice self-care will lead to people all over the world being healthier. expected "in just a few months," as reasons for upgrading stock in the Paris-based drugmaker to a "buy. Sanofi Offloads 16 Consumer Health Brands Health 9 hours ago Web As part of its quest to streamline consumer healthcareand eventually spin off the unit as a standalone businessSanofi will offload 16 consumer . Sanofi shareholders will receive one EUROAPI share for 23 shares held in . The profit growth will be supported by new vaccines and specialty drugs, and improved operational performance. The company operates in three major business segments, Pharmaceuticals, Vaccines and Consumer Healthcare. Other commercial successes in J&Js pharma portfolio include inflammatory disease therapy Stelara, which reaped $7.7bn in revenue last year; monoclonal antibody Darzalex for the treatment multiple myeloma; lymphoma and chronic graft-versus-host disease drug Imbruvica, developed with AbbVie; and antibody-based plaque psoriasis treatment Tremfya. In the past, Elliott has sought changes at Alkermes Plc, Allergan and Bayer AG, as well as the sale of Alexion Pharmaceuticals Inc., prior to its acquisition by AstraZeneca Plc. From Elliott reported ), which the drugmaker considered to undervalue the.. Defense against a potential activist campaign from Elliott shareholders will receive one EUROAPI share for shares. Have a beneficial long position in the future, please enable Javascript cookies. Joint venture or a sale of its consumer Healthcare NewCo due to the expected timing... 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