MW Sanofi in talks to sell consumer healthcare business that makes Dulcolax

By Steve Goldstein

Reports say business would be valued at around $16 billion

Sanofi on Friday said it's in talks with the private equity firm CD&R to sell just over half of its consumer healthcare business, in a deal that could yield billions of dollars for the French drugmaker.

Sanofi said the talks to sell 50% plus one share of what's called Opella fits with the company's broader strategy to focus on innovative medicines and vaccines.

Bloomberg and Reuters reported that the late-stage talks would value all of Opella at around EUR15 billion ($16.4 billion).

Sanofi shares (FR:SAN) $(SNY)$slipped 0.3% in early trade in Paris. The stock has gained 12% this year.

Analysts at Alphavalue said the reported deal price would value Opella at less than other consumer healthcare peers including Haleon $(HLN.UK)$ and Kenvue $(KVUE)$, though its ability to grow under private-equity ownership may be enhanced, so the remaining stake could surprise positively.

Consumer healthcare last year had annual sales of EUR5.18 billion, led by what it calls digestive wellness.

Sanofi in last year's annual results said Dulcolax was the category leader. Other brands it has includes Allegra, Doliprane, Novanight and Icy Hot.

-Steve Goldstein

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October 11, 2024 04:32 ET (08:32 GMT)

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