Panama7/iStock Editorial via Getty Images
Sanofi (NASDAQ:SNY) is reportedly lining up banks for a potential spinoff of its consumer health products division.
The French drugmaker has asked banks to submit proposals to work on the deal, which could occur as early as Q4. The company is mulling whether to spin off the unit or sell it outright. A separate listing could be valued at over $20B, according to Bloomberg.
A Sanofi representative told Bloomberg that the company would most likely seek to separate the unit through a capital markets transaction, which would occur at the earliest in Q4. The listed entity would likely be headquartered in France.
Advent International and Blackstone (BX) have all reportedly shown interest in the unit, along with CVC Capital Partners, KKR (KKR), and Clayton Dubilier & Rice, Bloomberg added.
Sanofi’s consumer unit markets a number of well-known over-the-counter products, including Zantac 360, Allegra, Nasacort, Selsun Blue, Gold Bond and Aspercreme.
Sanofi would be the latest Big Pharma denizen to spin out its consumer or generic drug operations as separately traded entities. Johnson & Johnson (JNJ) spun out its consumer products division as Kenvue (KVUE) last year, while GSK (GSK) spun out its consumer division as Haleon (HLN) in 2022.
Last year, Novartis (NVS) spun out its Sandoz division, listing the generic drugmaker on the SIX Swiss Exchange.