Sanofi will transfer ownership of the €11.4bn Merial animal health business to Boehringer in return for the latter's consumer healthcare (CHC) business, valued at €6.7bn.
Sales of Boehringer’s CHC business were €1.51bn in 2015, contributing 10% to the company’s net sales.
The leading brands of CHC business include the antispasmodic Buscopan, the laxative Dulcolax, the multivitamins Pharmaton, the cough treatments Mucosolvan and Bisolvon and the sore throat treatment Mucoangin/Lysopaïne.
The European Commission was notified of the plan in June this year. The regulator has however expressed concerns that it would have reduced competition for some over-the-counter medicines, potentially resulting in higher prices and less choice for consumers.
The major overlaps were in the areas of gastrointestinal treatments, coughs and colds, pain and mobility, cardiac stimulants, vitamins and well-being, the commission said.
In response, Sanofi offered to sell off some of the operations run by either company in the markets concerned.
The commission’s approval is conditional on the two companies offloading businesses in the Czech Republic, Estonia, France, Hungary, Greece, Ireland, Latvia, Poland and Slovakia.
Image: Sanofi Gerntilly site. Photo: courtesy of Sanofi.