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Sanofi (FRA: SNW), the giant healthcare company, is considering spinning off its consumer health business. In a statement, the management said it was hoping to create a separate company listed in France.
Sanofi’s decision comes a few months after Johnson & Johnson created Kenvue, a consumer health company now valued at over $35.78 billion. Kenvue owns brands like Listerine, Aveeno, Benadryl, and Clean & Clear that are sold around the world.
A while before that, GlaxoSmithKline (LON:GSK) created a separate company known as Haleon, which is listed in London. Haleon owns brands like Sensodyne, Parodontax, Centrum, and Panado. It is now valued at over 30 billion pounds.
Sanofi owns a large consumer health company that owns some well-recognizable brands. This division is divided into allergy solutions like Allegra and Xyzal, cough, cold & flu drugs like Bisolvon, Mucosolvan, and digestive wellness products like DulcoLax, Essentiale, and Buscopan.
Sanofi’s consumer health care also owns pain relief drugs like Eve, Doliprane, and phsyical and wellness brands like Unisom and Pharmaton. This division is an important one for Sanofi.
In the third quarter, consumer healthcare’s revenue rose by 4.6% to €1.2 billion. Specialty care’s revenue jumped by 13% to €4.6 billion while its vaccines and GenMed revenue tumbled by 0.6% to €3. Billion and -6.6% to €3 billion, respectively.
Sanofi’s consumer health business generated over €5.1 billion in revenue in 2022. At the current exchange rate, this revenue translates to $5.2 billion. Kenvue made $15 billion while Haleon made $12.2 billion. Therefore, this means that Sanofi’s consumer business could get a valuation of over $12 billion.
Sanofi also launched a new Play to Win strategy as it seeks to continue growing. As part of this strategy, the company aims to scale Dupixent, a drug that prevents severe asthma attacks. It aims to make the drug a world-leading medicine in the coming years.
Sanofi stock price tumbled by more than 13% and crashed to a low of 86 euros, the lowest level since March 13th. It has tumbled by more than 17% from its highest level this year.
The post Sanofi to create its own Haleon, Kenvue as its stock price tumbles appeared first on Invezz
