By Arno Schuetze and Matthias Blamont
FRANKFURT/PARIS, Nov 21 (Reuters) - Sanofi is
considering a joint venture or outright sale among options for
its consumer healthcare unit, sources told Reuters, as the
French drugmaker prepares to present a new strategic plan next
month.
An initial public offering (IPO) of the unit, which could be
worth around $30 billion according to two sources familiar with
the matter, is also on the cards. Sources cautioned that no
final decision had been made.
Recently appointed chief executive Paul Hudson, who took the
job on Sept. 1, plans to meet investors for a capital markets
day in Cambridge, Massachusetts, on Dec. 10.
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 euros ($5.21 billion), arguing proceeds would enable
the group to invest more in internal research.
"Sanofi is looking at various options, joint venture,
initial public offering, sale (...) They are talking to
investments banks about options but have not taken a decision,"
one of the sources said.
The source added that forming a consumer healthcare joint
venture with one of its large peers would allow it to benefit
from cost cuts and later reap a higher valuation in a possible
IPO or sale further down the line.
Shares in Sanofi were up 1.45% at 84.08 euros at 1030 GMT,
after Bloomberg earlier reported that the company was studying
options for the consumer unit.
A Sanofi spokesman had no comment.
Hudson said last month he and his teams would study the
performances of every Sanofi division to decide where to invest.
"Prioritisation will become increasingly important going
forward", Hudson 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."
Sanofi swapped its animal health unit with Boehringer
Ingelheim for the German company's consumer healthcare
operations in a $20 billion deal closed in 2017.
Britain's GlaxoSmithKline, in turn, has created the
market leader after agreeing to combine its consumer healthcare
unit with that of U.S Pfizer last year. The joint
venture will be spun off and separately listed.
Analysts at Bernstein Research said in a September note that
there was significant opportunity for consolidation because the
top 10 players in consumer health only have a combined 23%
market share between them.
The GSK joint venture has a global market share of 3.5%,
with Johnson & Johnson, Bayer and Sanofi as
close competitors.
($1 = 0.9022 euros)
(Additional reporting by Pamela Barbaglia in London and Ludwig
Burger in Frankfurt; Editing by Alexandra Hudson)
Glaxosmithkline (GSK)