INDIA – Sanofi India Limited, formerly Aventis Pharma Ltd, plans to demerge its consumer healthcare business in India following the approval of the company’s Board of Directors.
This news comes as Sanofi India Ltd.’s consumer healthcare business annual turnover at the end of the Financial Year 2022 is valued at around Rs. 730 crores (approx. US$89 million).
Under the latest Scheme of Arrangement, Sanofi is set to separate from India’s consumer business to form an entirely new legal independent entity, Sanofi Consumer Healthcare India Limited (SCHIL).
Sanofi Consumer Healthcare India Limited will fully integrate Sanofi’s global consumer healthcare strategy to facilitate better participation in the Indian consumer healthcare landscape.
“In the rest of the world as well as in India, implementing the global standalone organization of the consumer healthcare (CHC) business within Sanofi is the best platform to unleash its growth potential,” the healthcare company said in a press release.
Sanofi will continue to own a 60.4% stake in both entities upon completion of the proposed demerger of SIL’s consumer healthcare business.
Moreover, shareholders of Sanofi India Limited will receive a 1:1 SCHIL equity share of INR 10/- (US$0.12) each, for each equity share owned.
The subsidiary will include all assets and liabilities pertaining to the business, including top consumer healthcare brands like Allegra, Combiflam, DePURA, and Avil.
“The proposed demerger is fair for all shareholders. Subject to necessary approvals, SCHIL will be listed on the BSE and the National Stock Exchange Limited,” the company stated.
This proposed demerger will create new opportunities for the business growth of the parent company Sanofi while benefitting employees based at the Sanofi affiliates in India.
In turn, the new entity is well-positioned to unlock and maximize Sanofi’s business potential in both the pharmaceuticals business (SIL) and consumer healthcare business (SCHIL) in India.
Sanofi Consumer Healthcare India Limited is expected to be fully operational by the second half of 2024, the proposed transaction remains subject to necessary approvals.
“The proposed standalone consumer health company in India will be equipped by way of the portfolio, specific global skills, and consumer-centric mindset to truly evolve as a fast-moving consumer healthcare company,” outlined Sanofi India.
According to the company’s statement, Sanofi Consumer Healthcare India Limited has an ambitious growth plan.
The independent company is expected to build consumer-centric strategies, shape the over-the-counter (OTC) market environment, and boost best-in-class digital and e-commerce capabilities.
Furthermore, the proposed demerger will enable Sanofi’s General Medicines business to focus on its long-term success factors to improve the lives of patients in India.
Sanofi India Ltd has a diverse pharma portfolio of products, which includes established and leading General Medicines brands.
The pharma unit is looking to expand its life-changing treatment portfolio available in the country as well as drive world-class scientific Healthcare Professional (HCP) engagement.
With the separation of Sanofi’s consumer business, the General Medicines division plans to invest in expanding the market reach of its pharmaceutical brands and accelerate its digital transformation.
These General Medicines brands include Lantus, Toujeo, Clexane, Amaryl, Apidra, Frisium, Cardace, Lasix, Targocid, Cetapin, and the recently approved diabetes drug Soliqua.
The landmark decision of French drugmaker Sanofi follows a growing trend in the global health industry as companies pursue growth opportunities and investments.
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