Sanofi to create massive standalone API producer by melding 6 sites in Europe; IPO to come

sanofi HQ
Sanofi says it will create a standalone API production company in Europe with €1 billion in sales by 2022. (Sanofi)

New CEO Paul Hudson has pledged to squeeze €2 billion out of Sanofi’s annual costs in a couple of years through a mix of methods that leans heavily on clamping down on its manufacturing budgets. It has now announced a plan that it says will not only do that but add to its top line. 

The French drugmaker today trumpeted plans to create the world’s second-largest API production operation by clumping together its six API manufacturing sites in Europe and the U.K. It said the operation, with 3,100 employees, is projected to have about €1 billion in sales by 2022. 

RELATED: How will Sanofi save €2B? Chopping support staff and 'smart' purchasing, for 2

Sanofi intends to decide by then whether to float an IPO for the new French-based company on Euronext Paris. It said the company, in which it will hold a 30% share, will be debt-free to enhance its investment ability.

“With this endeavor, this new entity would be agile as a standalone company, and able to unlock its growth potential, especially in capturing new third-party sales and all the opportunities of a market growing at a pace of 6% per year,” Philippe Luscan, executive VP of Sanofi global Industrial affairs said in a statement. 

RELATED: Sanofi to add 350 jobs at shared services site in Hungary

Sanofi says it will include its API commercial and development operations with its API manufacturing sites Brindisi, Italy: Frankfurt, Germany; Haverhill, UK; St Aubin les Elbeuf and in Vertolaye, France and in Újpest, Hungary. 

The company said that such a business would help alleviate drug shortages and balance Europe’s “heavy reliance on API sourced from the Asian region.”

That, of course, has been top of mind as COVID-19 has wreaked havoc on manufacturing in China, the world’s Walmart of API sales. It says that statistics show 60% of global API production comes from China and India. 

Read more on

Suggested Articles

Besides paying $729 million to settle notorious kickback allegations, Novartis has promised to put strict restrictions on its future speaker programs.

Pharma companies including Pfizer and Novartis paused advertising on Facebook for July to protest hate and disinformation on the platform.

CureVac and Tesla are teaming up to produce the German vaccine maker's molecular RNA printers, Tesla CEO Elon Musk tweeted Thursday.