Sanofi and Boehringer Ingelheim (BI) agreed to swap businesses. Sanofi will exchange its €11.4 billon animal health business (Merial) with BI’s €6.7 consumer healthcare (CHC) business. BI’s CHC business in China would be excluded from the agreement, and the deal would also include a cash payment from BI to Sanofi of €4.7 billion.
Sanofi would become a global leader in consumer healthcare and BI would be the second largest animal health company. Sanofi will gain access to iconic brands in antispasmodics, gastrointestinal, and analgesics and attain critical mass in cough and cold, explained a Sanofi spokesperson.
Combining Merial's and BI’s complementary strengths in antiparasitics, vaccines, and pharmaceutical specialities would place the combined company in the key growth segments of the industry, according to a BI official, adding that the species portfolios are highly complementary building on Merial's expertise in companion animals and poultry and BI's expertise in swine.
“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. This transaction would allow Sanofi to become a world leader in the attractive nonprescription medicines market and would bring a complementary portfolio with highly recognized brands, allowing for mid and long term value creation,” said Olivier Brandicourt, M.D., CEO of Sanofi.
“Boehringer Ingelheim's strategic priority is to focus on the company's core areas of expertise and businesses with an established global scale, or where a pathway to a global scale can be achieved and prioritized among Boehringer Ingelheim's portfolio opportunities,” said Prof. Dr Andreas Barner, chairman of the board, Boehringer Ingelheim. “Boehringer Ingelheim Animal Health is and will stay strongly committed to bringing novel, innovation driven solutions to veterinarians and animal owners. Our combined Animal Health business would be well positioned for growth and emergence as a leader globally. “