Feb 24, 2020: Sanofi plans to produce a major leading European company dedicated to the production and marketing to the third parties of active pharmaceutical ingredients (API), which are the important molecules responsible for the valuable effects used in the composition of any drug.
The project consists of creating a separate company which would combine Sanofi’s API commercial and development activities with six of its European API production sites : Brindisi (Italy), Frankfurt Chemistry (Germany), Haverhill (UK), St Aubin les Elbeuf (France), Újpest (Hungary) and Vertolaye (France).
With growing medicine shortages that significantly impact patient care, the new thing would contribute to supporting and securing API manufacturing as well as supply capacities for Europe and beyond. In Europe, the new API industry champion is expected in order to help in balancing the industry’s heavy reliance on API sourced from the Asian region.
With approximately € 1 billion in expected sales by 2022, the new company will rank as the world’s second-largest API firm. It is planned to hire 3,100 skilled staff and be headquartered in France. A proposed IPO on Euronext Paris would be evaluated according to market conditions, with a decision anticipated by 2022.
The new entity plans to increase its sales to third parties by operating independently and to extend its collaborations with other pharmaceutical companies in order to take advantage of new growth opportunities and have the ability to adapt deftly to customer needs. The new company would be exclusively positioned to benefit from its important competitive strengths, including a broad portfolio of both volume and niche products, high standards of quality, competitive pricing, state-of-the-art industrial capabilities and technologies across Europe (including France, Italy, Germany, Hungary, and the United Kingdom) as well as purchase an extensive commercial network covering more than 80 countries.
Sanofi is fully dedicated to the new company’s success and intends to establish a long-term customer relationship with the new API supplier and to hold an alternative stake of about 30% in the new company. To provide the optimal conditions for success, Sanofi intends the new company to be debt-free in order to maximize its future investment capacities, and is committed to outstanding an important customer.
https://www.sanofi.com/en/media-room/press-releases/2020/2020-02-24-16-03-59
