Sanofi CEO to Unveil new Strategy in December to Sell or Spin-off Consumer Health Unit | 29 November, 2019

French drugmaker Sanofi is considering a joint venture or outright sale of its consumer healthcare unit as it readies its new strategic plan that is likely to be announced next month, a Reuters news report said.

Sanofi’s newly appointed CEO Paul Hudson plans to meet investors for a capital markets day in Cambridge, Massachusetts, on December 10.

Also likely to figure in its new strategic plan is an initial public offering (IPO) of the consumer healthcare business, which could be worth around US$ 30 billion, sources said. However, no final decision had been made so far, they added.

According to analysts, divestment or spin-off of Sanofi’s consumer healthcare arm would enable the group to invest more in internal research. Revenue of the consumer healthcare arm grew by 3 percent at constant exchange rates last year to US$ 5.2 billion (Euro 4.7 billion).

Sanofi may also take decision about the future of Sanofi’s ailing diabetes business, which has been under constant pricing pressure in the US, while drawing up its new strategic plan. Hudson said last month he and his teams would study the performances of every Sanofi division to decide where to invest.

“Prioritization will become increasingly important going forward,” Hudson had told reporters in October. “The reality in business is that some things are more important than others and we have to understand where we must win.”

Meanwhile, Muzammil Mansuri, Sanofi’s head of strategy and business development and member of the French drugmaker’s executive committee, will be retiring from the company. This is the first major management change under Hudson, who took over on September 1.

Mansuri had joined Sanofi in 2016 from Gilead Sciences where he was in charge of research and development strategy and corporate development.

Hudson said in the memo that Alban de la Sabliere, currently head of business development, and Laurent Van Lerberghe, head of strategy, would take on more responsibilities as of December 1 and report directly to him. Even though the group’s new strategy is still in the works, Hudson has made no secret that significant changes were underway.
(Source: PharmaCompass)