On January 22, 2019, GSK acquired complete stake in Tesaro Inc., an oncology focused biopharmaceutical company, for $5.0 billion (3.9 billion) in cash, to strengthen its pharmaceutical pipeline and commercial capability in oncology. Executive Vice President, Consumer Healthcare, on International Self-Care Day 2022, Self-care activities generate $119 billion in monetary and healthcare workforce savings globally.1, Self-care relieves a burden on healthcare providers, saving 1.8 billion hours of physicians time globally.1, Globally, self-care saves people around 11 billion hours.1*. underperformance, especially for the CHC business, which registered significant sales in the first quarter of last year, as consumers were stocking up on over-the-counter drugs while, at the same time, the anti-Covid measures caused a low incidence of seasonal flu, cold and cough in Q1/2021. Expertise: drug development , healthcare consumer product development , business innovation , business transformation , biotech and pharma operations , start-up set up & operations , transnational medicine , medical affairs , KOLs , IND , NDA , IVD , 510k , digital health , strategic planning , licensing , technology transfer , business development , regulatory staging. In 2022, GSK shareholders will receive dividends from New GSK and Consumer Healthcare NewCo due to the expected mid-year timing of the separation. Sanofi does not anticipate any impact of this divestiture to its European-based workforce. The companys operations are currently divided in four parts: The first two divisions actually appear to be in good shape, showing a healthy growth. The CEO's review of the consumer unit coincided with a trend for pharmaceutical giants like Johnson & Johnson and GlaxoSmithKline PLC to simplify their diversified structures and double-down on lucrative franchises, such as cancer and rare disease, driven by pioneering science, data and technological advances. "It's very significant, we are really reallocating our cost base towards innovation on science," the CFO said. Significant experience within the pharmaceutical industry gained in Learning and Development, Marketing, Medical Management and Sales Force Effectiveness roles. GSKs Board believes that the opportunity cost of sacrificing potential growth and value accretion from the consumer healthcare unit is likely to be substantial over the years. Landmark New England Journal of Medicine publication reinforces potential of GSK's respiratory syncytial virus older adult vaccine candidate. I am encouraged by the organizations early achievements in our efficiency initiatives, which will allow us to further drive innovation in our business., 1985 - 2023 BioSpace.com. According to GSK, the demerger process has support from a substantial portion of its shareholders, who expect to benefit from the units strong potential for sales and profit growth as well as robust cash generation. However, if the consumer division no longer holds the deep pockets of the combined company, the risk of future consumer product litigation such as the large talc settlement may decrease.. The company also stated that a formal process to appoint the Chair and form the Board of the consumer healthcare unit is in progress. Earlier this month, Sanofi announced a new strategic vision for its Consumer Healthcare division. Jones Day (France) acted as legal advisors to Sanofi. I am not receiving compensation for it (other than from Seeking Alpha). "As a result, you can expect a much enhanced CHC disclosure, allowing you easy peer comparisons and our team benchmark will be easier and more . Colds are one of the most common illnesses experienced by both adults and children. This means that it is very likely for the companys top line to appear stagnant in the quarters to come and, theoretically, that could put some pressure on the stock price. . EUROAPI develops, manufactures, markets and distributes APIs and intermediates used in the formulation of medicines for human and veterinary use, both from originators and generics, through its API Solutions business and CDMO activities. It followed a historic slump in over-the-counter sales for cough and cold medicines across the industry in 2020 as a result of social distancing and other pandemic-related regulations. Moreover, the remaining 20% stake in the spun-off unit post deal completion offers GSK with the opportunity to benefit from strong performance at the spun-off unit. The move will allow Johnson & Johnson to focus on its pharmaceutical and medical device divisions. . On June 23, 2021, GlaxoSmithKline plc (NYSE: GSK, $40.45, Market Cap: $101.8 billion) announced that it plans to spin-off its Consumer Healthcare division into a separately listed company. Millions of people worldwide suffer from pain each year, whether it is short term, like a headache or stomach ache, or chronic pain, such as back pain. We wanted it to be a fast-growing consumer health business [and] to explain to the market why we thought we were the best owner.". Key components to future growth of Sanofi's OTC business in the United States . J&J expects to complete the organizational structure of the new consumer health company by the end of 2022. Elsewhere, Sanofi said it expects trials of the COVID-19 shot being developed in conjunction with GSK to read out later this quarter, while a late-stage vaccine for respiratory syncytial virus developed with British COVID-19 vaccine-maker AstraZeneca PLC is expected to be filed with regulators this year. By 2026, cash generated from operations for New GSK is expected to exceed 10 billion. We believe the separation could be a trigger for driving improved share price appreciation, given that the stock has underperformed peers historically. 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 . The patent stays until 2035 to 2039 (oral form). Job alerts. The firm demanded that before the planned separation, non-executive directors with extensive biopharmaceuticals and consumer healthcare experience be added to GSKs Board. Cowen's 43rd Annual Health Care Conference With Bill Sibold, EVP, Specialty Care & Frank Nestle, Global Head of Research, Chief Scientific Officer > Add the event to my calendar As its shown below, in fact, sales mix is steadily improving over time. The units revenue grew by 3% at constant exchange rates in 2018 to $5.21 billion. Sanofi provides healthcare solutions in over 150 countries. The reality in business is that some things are more important than others and we have to understand where we must win.. Self-care can enhance wellbeing, prevent disease, curb illness, and restore health. Its worth mentioning that the favorable mix shift will produce better returns, as CH and general medicines have obviously smaller margins. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address. The gut is often referred to as the bodys second brain. Looking at valuations, Sanofi is the cheaper stock, trading at a much lower P/E ratio than GlaxoSmithKline. Real-time Euronext Paris > Add the event to my calendar, An in-depth look at our vaccines business, strategy and roadmap through to 2025/2030, We chase the miracles of science to improve peoples lives and to transform the practice of medicine, Please contact the Global Headquarters in France : Based in Paris, France, Sanofi stands in the upper ranks of the world's top 10 pharmaceutical companies based on revenue. Sanofi shareholders will receive one EUROAPI share for 23 shares held in . Notice "As discussed during our Capital Markets Day in February, simplifying the CHC product portfolio is an important part of our strategy to focus our resources and efforts where we can bring the most value, especially to consumers. Opinions expressed by Forbes Contributors are their own. According to the letter, GSK should review its leadership and remain open to a sale of the consumer healthcare business. Employing over 100,000 workers, it generates over $42 billion in annual sales and is ranked at #288 in the Fortune 500. Consumer Health (OTC) Products; U.S. The consensus recommendation is Strong Buy, based on a survey of 18 . Sanofi CEO's strategy blueprint may include consumer health spinoff or merger: Bloomberg | Fierce Pharma . Is this happening to you frequently? Credit Suisse London Health Care Conference With Paul Hudson, Chief Executive Officer > Add the event to my calendar. Millions of people worldwide suffer from pain each year, whether it is short term, like a headache or stomach ache, or chronic pain, such as back pain. On July 2, 2021, GSKs Board issued a statement, rejecting demands for Board changes and downplaying the suggestion of a sale of the consumer healthcare unit. Building on this foundation, Sanofi delivered a resilient underlying performance in the third quarter with strong sales in Specialty Care, largely driven by the continued outstanding performance of Dupixent. 2021 position: 10. I have no business relationship with any company whose stock is mentioned in this article. Visit our privacy policy for more information about our services, how we may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. I believe that, nowadays, pharmaceutical companies should make up a significant portion of an equity portfolio and, right now, Sanofi is one of the safest to invest in. This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. About French Tech Souverainet Then there is the funding support available. Across the world, 77% of people have used nutritionals in the last 12 months to maintain their general health, provide immune system support or to supplement in areas of vitamin deficiency. We provide potentially life-changing treatment options and life-saving vaccine protection to millions of people globally, while putting sustainability and social responsibility at the center of our ambitions. "We're going to build an industry-leading and sustainable pipeline," the CEO said. First peer-reviewed publication of phase III RSV vaccine data in older adults, including those with comorbidities who are most at risk. Deal Overview. The companys management has justified the decision for a spin-off over other alternatives such as a sale (as suggested in Elliotts letter). As part of Sanofis ongoing efforts to reduce the complexity of its Consumer Healthcare portfolio and accelerate its growth trajectory, the company has signed an agreement with STADA for the divestiture of 16 Consumer Healthcare products commercialized in Europe. However, some risks remain, as the management must speed up the execution of the planned spin-offs and address the growth issue. Incorporated in 1999, GlaxoSmithKline plc (GSK), a British company based in United Kingdom. It is provided for information only. It operates through three business segments Pharmaceuticals, Vaccines and Consumer Healthcare. Again, the sooner the better. The combined global sales were about $12.7 billion in 2017. Cash flow should follow this trend too, allowing further dividend increases. I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. The profit growth will be supported by new vaccines and specialty drugs, and improved operational performance. GSK claimed strengthened governance through the appointments of former Bristol-Myers Squibb executive Charles Bancroft and Anne Beal as non-executive directors. Pursuant to the terms of the deposit agreement between JP Morgan, as Depositary, Sanofi and the owners and beneficial owners of American Depositary Receipts, as the Depositary deems the distribution of EUROAPI shares to ADS holders not to be feasible, the Depositary may adopt such method as it may reasonably deem equitable and practicable for the purpose of effecting the distribution of EUROAPI shares, including the sale of the EUROAPI shares and distribution of the net cash proceeds of the sale to ADR holders on the relevant record date. Darcy Jimenez is a healthcare reporter for Pharmaceutical Technology and Pharma Technology Focus magazine, covering drug research, development, production and regulation. Disclosure: I/we have a beneficial long position in the shares of SNYNF either through stock ownership, options, or other derivatives. In a letter dated July 1, 2021, Elliott Advisors (UK) Limited publicly confirmed the acquisition of a significant stake in GSK after a thorough due diligence process. Other commercial successes in J&Js pharma portfolio include inflammatory disease therapy Stelara, which reaped $7.7bn in revenue last year; monoclonal antibody Darzalex for the treatment multiple myeloma; lymphoma and chronic graft-versus-host disease drug Imbruvica, developed with AbbVie; and antibody-based plaque psoriasis treatment Tremfya. At CER, the growth was 15.3% and 5.3% respectively. All rights reserved. Global markets live: GM, Pfizer, Exxon, UBS, Boeing EUROAPI Announces Resignation of Corinne Le Goff as an Independent Member on the Board .. I've been managing my personal funds since May 2008.As stocks are just pieces of businesses I try to look at mine with an enterpreneurial approach: that's why my portfolio is made-up by 6-8 holdings, which I follow costantly. J&J CEO Alex Gorsky said in a statement that the planned split would allow J&J to deliver new solutions for patients through biopharmaceutical and medical device innovation and technology, and provide the new consumer health company with the agility and flexibility to grow its iconic portfolio of brands and innovate new products. | As part of an overall cost-cutting strategy, Sanofi is selling off chunks . The rationale is that the company, whose innovation engine has been strongly reliant on its relationship with Regeneron Pharmaceuticals, would be able to invest the proceeds into more internal research. They are the essential molecules used in the composition and manufacture of any medicine. If you wish to continue to this external website, click Proceed. Executive Vice President, Consumer Healthcare, on International Self-Care Day 2021. Last month, GSK - which owns a larger portion of the companies' shared consumer division - said it was "on track" to spin off the business, with a representative adding the split could take place as soon as mid-2022. Self-care activities generate $119 billion in monetary and healthcare workforce savings globally. Sanofi said on Tuesday it hopes to take over the consumer health care unit of German peer Boehringer Ingelheim via an asset swap, making the French pharmaceutical giant the sector's world leader. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven by the cough and cold, pain care, and digestive wellness categories. Investigator Sponsored Studies and Externally Sponsored Collaboration, Access to Quality Healthcare Sanofi Global Health, Contributing to the eradication, elimination and control of some infectious diseases, Serving the needs of patients with non-communicable diseases, Development opportunity: how Sanofi empowers you, https://www.sanofi.com/en/investors/contact. Further details regarding the specifics of the distribution, including the parity, and the timetable of the spin-off will be set forth in EUROAPIs French prospectus. Please. Haleon emerges from GSK consumer healthcare spin-off. Our mission is to Serve Healthier, Fuller Lives by offering moments of relief to our Patients & Consumers in our key platforms, including Allergy, Physical & Mental Wellness, Pain . Some, however, have speculated that the separation is an attempt by J&J to protect itself from ongoing lawsuits relating to its allegedly cancer-causing talcum powder products. Transaction is expected to close on May 6, 2022. We are pleased these products will continue to be available for consumers as we focus on becoming a fully integrated standalone business said Julie Van Ongevalle, Executive Vice-President, Sanofi and Head of Sanofi Consumer Healthcare. We recognize that allergies can be challenging and symptoms such as itchy eyes, sneezing and a runny nose can be a burden to getting on with everyday life. Sanofi's fourth quarter saw consumer health sales rise 5.6%, driven . '' the CEO said former Bristol-Myers Squibb executive Charles Bancroft and Anne Beal as non-executive with. Colds are one of the consumer healthcare support available i am not compensation..., allowing further dividend increases, including those with comorbidities who are most at risk of. Who are most at risk employing over 100,000 workers, it generates over $ 42 billion in sales! Position in the composition and manufacture of any Medicine according to the,! 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