Sanofi to Create Pharmaceutical Ingredients Leader With Eyes to Spinoff

   By Carlo Martuscelli

France's Sanofi SA said Monday that it will consolidate its six active pharmaceutical ingredient production sites into a new market-leading company which it will consider for a separate listing.

The new entity is expected to generate around 1 billion euros ($1.08 billion) in sales by 2022, and would be the second-largest API producer in the world, the drug maker said. A decision on an eventual spinoff on the Euronext Paris will be made by 2022. In the event of a public listing Sanofi said it will retain about a 30% stake in the company.

"This new entity would be agile as a standalone company, and able to unlock its growth potential, especially in capturing new third-party sales," said Philippe Luscan, executive vice president of global industrial affairs.

The company is expected to employee about 3,100 people, with headquarters in France. Sanofi said it intends to purchase ingredients from the new company in a long-term supply deal.

Write to Carlo Martuscelli at carlo.martuscelli@wsj.com; @carlomartu

(END) Dow Jones Newswires

February 24, 2020 10:38 ET (15:38 GMT)

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