Capital Trend! $16.9 Billion Pharma Spin-off

Recently, French multinational pharmaceutical giant Sanofi has been in negotiations with U.S. private equity firm Clayton, Dubilier & Rice (CD&R), possibly selling a 50% stake in its consumer health business unit Opella.

At the end of September, foreign media reported that Sanofi received separate offers for Opella from PAI Partners and CD&R, with an estimated valuation of €15.5 billion (approximately $16.9 billion). Opella currently employs 11,000 people globally, has 13 manufacturing bases, and four research and innovation centers. Sanofi plans to sell its remaining shares in the company over the next few years.

On October 21, 2024, both parties entered an exclusive negotiation phase. During the spin-off process, France's national investment bank Bpifrance is expected to take a minority stake, approximately 2%.

In the first half of 2024, Opella accounted for 13.3% of Sanofi's total revenue, with a performance of €2.8 billion.

In 2023, Opella's sales were €5.18 billion. Sanofi stated that Opella ranks third in the over-the-counter (OTC) drugs, vitamins, minerals, and supplements market. Well-known brands include the antihistamine Allegra (fexofenadine hydrochloride), painkiller Doliprane, Novanight, Icy Hot, and Dulcolax, among others.

The potential buyer, the investment giant CD&R, was founded in 1978 and manages over $30 billion in investments.

Other Similar Pharma Spin-offs

Previously, Johnson & Johnson spun off its consumer business and listed it under the name Kenvue.

GlaxoSmithKline (GSK) also spun off its consumer business and listed it as Haleon.

About Sanofi

Sanofi is a global leader in innovative pharmaceuticals and healthcare, with the mission to "pursue scientific breakthroughs and renew the vitality of life." As one of the first multinational companies to enter China after the reform and opening-up, Sanofi established its office in China in 1982. It currently has 12 offices of various models, 3 production bases, 4 major research and development centers, and 1 digital innovation center. Its diversified business covers pharmaceuticals, human vaccines, and consumer health.

In 2023, Sanofi made breakthroughs in China, receiving approval for 12 innovative products and indications. In the first half of 2024, these contributed €1.522 billion in sales performance.