With reports swirling about potential interest in Sanofi’s consumer health business, the French pharma has confirmed that a deal is indeed brewing.
Sanofi has entered negotiations with private equity outfit Clayton, Dubilier & Rice (CD&R) to potentially sell a 50% controlling stake in its consumer health business, dubbed Opella, the company said Friday.
France-based Opella employs more than 11,000 people across 100 countries. The company operates 13 manufacturing sites and four research and innovation centers, Sanofi said in a release.
As the world’s third-largest firm in over-the-counter vitamins, minerals and supplements, Opella also markets popular household brands like allergy med Allegra, Icy Hot for muscle pain, Gold Bond powder and Selsun Blue shampoo.
Opella already operates as a standalone unit within Sanofi, and a potential separation, either through a sale or spinoff, forms part of the French Pharma’s plan to hone its focus on innovative medicines and vaccines.
Late last month, Bloomberg reported that Sanofi had received separate offers from PAI partners and CD&R for Opella, which could be valued at 15 billion euros (then $16.7 billion).
When reached for comment, Sanofi pointed Fierce Pharma toward its October 2023 announcement telegraphing a potential consumer health separation, noting that it expected a transaction to materialize in 2024’s fourth quarter “at the earliest.”
“We are keeping all options open, including a listing, and a sale, to maximize value creation for all our stakeholders,” the spokesperson said last month.
Opella generated 5.2 billion euros ($5.6 billion) in 2023, accounting for 11% of Sanofi’s total business.
Sanofi’s bid to separate from Opella forms part of a larger trend in which major pharma companies like Johnson & Johnson, Pfizer and GSK have spun off their consumer health arms.
Still, Sanofi CEO Paul Hudson has said he’s interested in holding onto a stake in Opella once the split is done.
By Fraiser Kansteiner
Source: fiercepharma.com
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