Sanofi transfers 16 consumer health brands to Stada as part of CEO Hudson’s refocus effort
As part of a reorganization plan to cut costs and prioritize the immunology blockbuster Dupixent, Sanofi is parting ways with a handful of mainstream brands sold primarily in Europe.
As part of its quest to streamline consumer healthcare and ultimately transform the unit into a stand-alone enterprise, Sanofi will outsource 16 consumer healthcare products to Germany’s Stada Arzneimittel, the companies mentionned Monday.
As part of the deal, which is expected to be finalized in the third quarter, Stada will get its hands on product registrations, trademarks and trade rights in 13 countries, including France, Germany, Italy, Poland. and Spain, where sales are the highest. The companies did not disclose financial details.
The portfolio covers the brands of cold and flu medicine, skin care and dietary supplements, Stada mentionned in a press release.
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Sanofi does not expect the sale to weigh on its European workforce. The deal does not cover the change in personnel or manufacturing equipment, Stada said in its statement.
Stada, a specialist in generics and over-the-counter products, believes the deal will strengthen its position as “the top five players in the European consumer health market,” CEO Peter Goldschmidt said in a statement. By investing in Sanofi’s portfolio, which includes “digital channels” and “product innovation”, Stada aims to give brands “a new lease on life in their respective niches,” added Volker Sydow, head of consumer health. of the society.
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While Stada is developing in the field of consumer health, Sanofi is shrinking with a view to ultimately developing the activity as an independent company. Sanofi unveiled the strategy as part of CEO Paul Hudson’s renewed vision for the company in December 2019. Sanofi also aims to generate € 2.5 billion in annual spend by 2022, and the Hudson strategy includes additional focus on growth engines such as Dupixent and vaccines.
As it stands, Sanofi is still on track to “complete this transformation by the end of 2022,” the company spokesperson said.