French pharmaceutical company Sanofi is reportedly considering spinning off or selling its consumer health products division, which could be valued at over $20 billion according to Bloomberg. The company has reportedly reached out to banks seeking proposals for the transaction, which could take place as early as the fourth quarter of this year.
Sanofi’s consumer unit markets a wide range of well-known over-the-counter products, including Zantac 360, Allegra, Nasacort, Selsun Blue, Gold Bond, and Aspercreme. The spinoff or sale of this division would align with a growing trend among Big Pharma companies to separate their consumer or generic drug operations as independent entities.
Several private equity firms, including Advent International, Blackstone, CVC Capital Partners, KKR, and Clayton Dubilier & Rice, have reportedly expressed interest in acquiring the unit. Sanofi is expected to make a decision on the deal’s structure, whether to proceed with a spinoff or a sale, at a later date.
If Sanofi proceeds with a spinoff, the listed entity would likely be headquartered in France. The company’s representative told Bloomberg that the separation would most likely occur through a capital markets transaction, which would take place at the earliest in the fourth quarter. The move would make Sanofi the latest Big Pharma company to spin out its consumer or generic drug operations as separate entities, following similar actions by Johnson & Johnson, GSK, and Novartis in recent years.
