In a push to free itself up for more R&D, Sanofi is acquiring a stake in German drugmaker, Cheplapharm.
Per the deal, Sanofi will offload 20 older medicines and three global manufacturing sites to Cheplapharm in exchange for a 26.4% equity stake in the company.
Unlike traditional pharmas, Cheplapharm specializes in maintaining mature medicines. The company buys established and off-patent branded medicines from reputable drugmakers, freeing up drugmakers—like Sanofi—to prioritize innovation.
Sanofi and Cheplapharm have worked together for more than a decade. But until the Sanofi deal, Cheplapharm outsourced its manufacturing. The partnership signals a transition toward inhouse manufacturing for Cheplapharm as it takes over production sites for the blood thinner Lovenox in Hungary, Singapore and France. The transfer of the manufacturing sites will include a total of 565 employees.
The deal allows Sanofi to shed assets wrapped up in more mature products at a time when the company’s new CEO Belén Garijo—who took the helm in May—has set sights on strengthening the company’s innovation for the good of mid and long-term growth.
In 2025, Sanofi’s R&D engine suffered multiple high-profile setbacks, sparking the change in leadership. In a Q2 earnings call, senior leadership also emphasized a stronger pipeline in preparation for the eventual biosimilar competition coming for megablockbuster Dupixent, the immunology drug Sanofi shares with Regeneron.
Since Garijo’s appointment, Sanofi has streamlined its portfolio, made several moves to improve cost effectiveness—including trimming its staff at Blueprint in Campbridge, and rearranged its R&D leadership.
“This new partnership, together with our equity stake in Cheplapharm, underscores our commitment to ensuring patients continue to benefit from today’s essential medicines while also pursuing tomorrow’s breakthroughs," said Thomas Grenier, executive vice president of general medicines at Sanofi.
The transaction is not expected to have any impact on Sanofi’s financial guidance for 2026, according to a statement from the company. Sanofi is expected to start transferring the agreed upon portfolio of medicines in the first quarter of 2027 and the manufacturing sites will follow. The deal is expected to be complete by the third quarter of 2027.