Sanofi’s sale of its $17bn consumer health business Opella just advanced a step closer, after the drugmaker signed a share purchase agreement with buyer Clayton Dubilier & Rice (CD&R).
The two companies agreed on the transaction that will see Sanofi hand over a 50% controlling stake of Opella to US private equity CD&R. French public investment bank Bpifrance is expected to participate as a minority shareholder with a 2% stake in the health business.
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Sanofi, which will remain a significant shareholder, said the deal is expected to take place in Q2 2025 at the earliest, with customary regulatory approvals still required.
The share purchase agreement is the first public update on the deal since Sanofi entered exclusive talks with CD&R in October 2024. At the time, the French pharma company placed an enterprise value of €16bn ($17bn) on Opella, around 14 times the estimated core earnings (EBITDA) for 2024. The decision to divest Opella is part of Sanofi’s ongoing strategy to become a pureplay biopharma company.
Opella employs more than 11,000 people worldwide and is known for making Doliprane, one of France’s most-sold paracetamol-based painkillers. The medicine is so popular that most paracetamol products are referred to as Doliprane, regardless of the manufacturer. In addition, Opella develops allergy treatment Allegra (fexofenadine) and irritable bowel syndrome (IBS) relief medicine Buscopan (hyoscine butylbromide), among others. Sales in the business totalled €5.6bn ($5.8bn) in 2023, accounting for 11% of Sanofi’s total business.
Sanofi also claims Opella is also the third-largest business in the world in the over-the-counter vitamins, minerals, and supplements market.
Given Opella’s significant economic contribution to France, Sanofi’s divestment prompted concerns in the country about the potential loss of a strategic asset to a US company. The Bpifrance stake is part of a guarantee from the French Government to keep jobs and production in the country.
Sanofi honing its focus on innovative medicines and vaccines while shedding its consumer health business is not unique. Johnson & Johnson (J&J) and GSK both made the same play in 2022, creating independent consumer healthcare businesses Kenvue and Haleon, respectively.
Opella is not the only big business decision recently made by Sanofi, as it has been busy increasing its ownership and reducing stakes held by investors. Earlier this month, Sanofi bought back a $3.1bn stake held by cosmetics giant L’Oréal, cutting the latter company’s ownership. In addition, Sanofi agreed to purchase a further $2.08bn in shares held by other stakeholders.
