Sanofi Appears to Have Identified a Potential Buyer for Its Consumer Health Division
Over the past year, Sanofi, the renowned French pharmaceutical leader, has actively sought a buyer for its consumer health segment. This search appears to be nearing completion.
On Friday, the company announced it is in discussions with private equity firm Clayton Dubilier & Rice regarding the possible sale of a 50% controlling stake in its consumer health division, known as Opella. Although financial details have not been revealed, Reuters reported a day before that the transaction is estimated at approximately 15 billion euros, which is roughly .4 billion.
The anticipated sale would provide Sanofi with a significant cash influx, enabling the firm to reallocate more of its resources towards its biopharmaceutical sector. This division—which covers vaccines and treatments for various conditions such as cancer, diabetes, and rare diseases—achieved sales exceeding 18 billion euros in the first half of this year. In contrast, Opella brought in nearly 3 billion euros during the same timeframe.
It has become increasingly common for major pharmaceutical companies to divest their over-the-counter divisions to prioritize higher-margin branded pharmaceuticals. For instance, Novartis executed such a plan in 2018, with Pfizer, GSK, and Johnson & Johnson also spinning off or selling their consumer health operations recently.
Sanofi’s recent announcement clarifies its trajectory in the divesture of Opella. Just a few months earlier, in late July, Chief Financial Officer François Roger mentioned during an earnings call that the company was engaged in a competitive evaluation process with three main strategies: a private spin-off, creating a publicly traded entity, or pursuing a sale.
In late September, Bloomberg reported that Sanofi had received binding offers from both CD&R and Paris-based PAI Partners, another private equity firm.
“The competition remains fully open, with our aim centered on shareholder value creation,” Roger stated in July. “Typically, a competitive scenario positions you better to maximize value, leaving us optimistic about our quality assets.”
Opella markets well-known brands like Allegra and Icy Hot, employing over 11,000 individuals across 100 countries, managing 13 manufacturing facilities, and overseeing four research centers.
Based in New York, CD&R boasts a diverse portfolio spanning more than 40 companies in various fields, including healthcare, technology, retail, and finance. Notable healthcare investments consist of Inizio, specializing in drug commercialization, and Aster Insights, a data solutions company focused on cancer drug development, gaining traction from the venture arms of Merck & Co. and McKesson.