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Sanofi (SNY, Financials) closed its previously announced deal to carve out consumer health business Opella into a standalone global leader, marking a strategic pivot toward pure-play biopharma operations.
The French drugmaker completed the transaction with private equity firm Clayton, Dubilier & Rice, selling a 50% controlling stake in Opella. Sanofi maintains a 48.2% share, while state-owned investor Bpifrance holds the remaining 1.8%.
Sanofi reported net cash proceeds of about 10 billion ($10.7 billion) from the deal, which it had outlined earlier in 2024. The company said Opella will now operate independently with over 11,000 employees, 100-country reach, and brands like Allegra, Doliprane and Dulcolax.
Sanofi said the divestiture supports its aim to become a focused biopharma player. CEO Paul Hudson said in a statement the deal enables Opella to pursue long-term growth with the operational and financial backing of CD&R.
The deal echoes a broader industry trend of large pharma companies shedding non-core consumer units to concentrate on high-margin drug pipelines.
Investors may monitor how Sanofi deploys the proceeds amid growing competition in the biopharma space. Meanwhile, Opella's next phase of international expansion could influence valuations if it prepares for a future IPO or further M&A.
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This article first appeared on GuruFocus.