Sanofi to Create Pharmaceutical Ingredients Leader With Eyes to Spinoff
25 February 2020 - 2:53AM
Dow Jones News
By Carlo Martuscelli
France's Sanofi SA said Monday that it will consolidate its six
active pharmaceutical ingredient production sites into a new
market-leading company which it will consider for a separate
listing.
The new entity is expected to generate around 1 billion euros
($1.08 billion) in sales by 2022, and would be the second-largest
API producer in the world, the drug maker said. A decision on an
eventual spinoff on the Euronext Paris will be made by 2022. In the
event of a public listing Sanofi said it will retain about a 30%
stake in the company.
"This new entity would be agile as a standalone company, and
able to unlock its growth potential, especially in capturing new
third-party sales," said Philippe Luscan, executive vice president
of global industrial affairs.
The company is expected to employee about 3,100 people, with
headquarters in France. Sanofi said it intends to purchase
ingredients from the new company in a long-term supply deal.
Write to Carlo Martuscelli at carlo.martuscelli@wsj.com;
@carlomartu
(END) Dow Jones Newswires
February 24, 2020 10:38 ET (15:38 GMT)
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