Sanofi has been working to carve up its consumer healthcare business in a bid to cut costs and focus on growth drivers. Now, Brazil's largest pharmaceutical company is getting in on the M&A action.
Sanofi unveiled the sale of eight over-the-counter and four prescription products to Brazil's Hypera, which spent $190.3 million on the acquisition. Among the products included in the deal are mouthwash Cepacol and antipyretic AAS.
The sale is part of Sanofi’s ongoing effort to streamline and eventually establish its healthcare unit as a standalone business.
“Simplifying the consumer healthcare product portfolio is an important part of our strategy to focus our resources and efforts where we can bring the most value,” consumer chief Julie Van Ongevalle said in a statement.
At the same time, as Sanofi explained in February, the consumer healthcare unit is banking on efforts to develop first-in-class prescription-to-over-the-counter switches for versions of erectile dysfunction drug Cialis and flu medication Tamiflu. Neither of the drugs can be obtained in the United States without a prescription.
Less than three weeks ago, Sanofi sold 16 consumer health products to Germany's Stada. The deal will give Stada commercial rights in 13 European countries to the products which include flu medications, food supplements and skincare treatments.
Neither sale will require workforce reductions, the companies have said.
Before that, in March, Sanofi sold its portfolio of seven anti-inflammatory drugs to Fidia Framaceutici of Italy for commercialization in a variety of countries around the world.
The effort is part of Sanofi's overall reorganization. CEO Paul Hudson wants to slash expenses and go all-in with blockbuster Dupixent, plus other growth drivers such as vaccines.
Last year, sales for Sanofi's consumer unit slipped 1.9% at constant exchange rates, while vaccines posted an 8.8% increase and pharmaceutical revenues grew 3.1%. Within pharmaceuticals, specialty care drugs posted a whopping 22% increase.