Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Sanofi and Boehringer Ingelheim are in exclusive talks on a potential asset swap that would see the French pharmaceutical firm swap its animal health unit (Merial) with the German company's consumer healthcare (CHC) business.
Subscribe to our email newsletter
Boehringer would pay Sanofi €4.7bn as part of the agreement. The French company’s animal-health business has an enterprise value of €11.4bn and Boehringer’s CHC business is valued at €6.7bn.
The deal does not include Boehringer’s consumer health-care business in China. The combination of Merial and Boehringer Ingelheim’s complementary strengths would have annual sales of about €3.8bn this year.
Sales of Sanofi CHC business were €3.3bn in 2014, while sales of Boehringer Ingelheim CHC business (excluding China) are estimated at around €1.6bn for 2015.
Sanofi CEO Olivier Brandicourt said: "In entering into exclusive negotiations with Boehringer Ingelheim, we have acted swiftly to meet one of the key strategic objectives of our roadmap 2020, namely to build competitive positions in areas where we can achieve leadership."
The companies expect to sign definitive agreements in the coming months after consulting with the appropriate social bodies.
The potential transaction is anticipated to be completed in the fourth quarter of 2016, subject to regulatory approvals.
A portion of the net proceeds would be used by Sanofi to repurchase shares.
Image: Sanofi Paris Headquarters (Rue La Boétie). Photo: courtesy of Daniel Rousselot/Interlinks Image.