Sanofi finalizes the €10 billion deal for the sale of its Opella division, which includes the Doliprane brand.
The Endgame of a Healthcare Saga: Sanofi Sells Off Opella to CD&R
It's the climax of a heated political saga that rocked the French political arena in fall 2024. Sanofi officially announced on Wednesday, April 30, the completion of the sale of half of Opella's shares, its over-the-counter medication powerhouse, to the American investment fund CD&R.
In September 2023, Sanofi revealed its ambition to separate its non-prescription medications and dietary supplements subsidiary. A year later, on October 21, 2024, Sanofi unveiled that it had entered exclusive negotiations with CD&R to sell half of the capital of its consumer healthcare division. The deal is sealed, and Sanofi walks away with a hefty €10 billion in cash, about 48.2% of Opella's shares still in its possession[1][2][3].
Health Sovereignty Concerns Eased
In the aftermath of the sale announcement, a wave of criticism swept over the political landscape. Elected officials from every side opposed the deal, sparked by worries about job security and national health autonomy with a foreign takeover on the horizon. To address these concerns, Bpifrance, the French public bank, will claim a 1.8% stake in Opella and join its board of directors[1][2].
The government brokered this deal to alleviate the public's worries over foreign control of a strategic sector like healthcare.
Strategic Shift for Sanofi
By shedding its consumer healthcare business, Sanofi transforms into a "pure-play biopharma," focusing purely on the development of prescription drugs and vaccines[3]. This move aligns with the industry's overall trend, where players like Novartis, GSK, Johnson & Johnson, and Pfizer have opted to divest non-core assets to concentrate on pharmaceutical research and development[3].
The Balance of Power
CD&R's 50% controlling stake could raise concerns about the balance of decision-making power. However, Bpifrance's participation ensures some degree of French influence over Opella's operations[2][3].
Global Implications
Opella, with its global reach, operates in over 100 countries, runs 13 manufacturing sites, and boasts four innovation centers[3]. The potential decisions made by the new ownership structure could reverberate beyond French borders.
In essence, while the sale of Opella marks a strategic turning point for Sanofi, the impact on French health sovereignty will depend on how the balance of power between the new owners and French investors shapes up, particularly in a critical sector like healthcare.
- Sanofi, after selling half of Opella's shares to CD&R, now holds a cash inflow of €10 billion, maintaining approximately 48.2% ownership.
- Bpifrance, the French public bank, will claim a 1.8% stake in Opella and also join its board of directors, as part of efforts to alleviate public concerns over foreign control.
- With this sale, Sanofi positions itself as a "pure-play biopharma," focusing solely on prescription drugs and vaccines, following industry trends set by companies like Novartis, GSK, Johnson & Johnson, and Pfizer.
- The 50% controlling stake held by CD&R may raise concerns about the balance of decision-making power, but Bpifrance's participation ensures some level of French influence over Opella's operations.
- As Opella works across more than 100 countries, operates 13 manufacturing sites, and has four innovation centers, the decisions made by the new ownership structure could have significant global implications, potentially impacting health-and-wellness, finance, and business sectors beyond French borders.
