Sanofi and Boehringer Ingelheim reach next step in business swap
Sanofi and Boehringer Ingelheim have signed contracts contracts to secure the exchange of Sanofi’s animal health business (Merial) and Boehringer Ingelheim’s consumer healthcare business.
This step marks a major milestone before closing of the transaction which is expected by year-end 2016 and remains subject to approval by all regulatory authorities in different territories. The integration of Boehringer Ingelheim’s Consumer Healthcare business into Sanofi and Merial into Boehringer Ingelheim would start after closing.
Upon closing this transaction will be a significant business swap in the pharmaceutical sector and an important event in the history of both companies.
A “win” for both companies
Commenting on the news, Prof Dr Andreas Barner, Chairman of the Board of Boehringer Ingelheim, said: “This is a win for Boehringer Ingelheim and Sanofi alike. Moreover, it is one of the most significant steps in our corporate history. It demonstrates the consistent orientation of our business towards innovation-driven sectors. As a research based pharmaceutical company, we will substantially enhance our position in the future market for Animal Health and will prospectively be one of the largest global players in this segment. The similarity in culture and approaches of BI and Sanofi will ensure that the businesses acquired by the other partner will develop well in the future.”
Olivier Brandicourt, M.D., Chief Executive Officer, Sanofi, said: “In signing these contracts, we are meeting one of the key strategic goals of our roadmap 2020, namely to become a leader in consumer healthcare and a leading diversified global human healthcare company. This business swap will bring a complementary portfolio to our consumer healthcare activity with highly recognized brands, allowing for mid and long term value creation, and enhancement of our market penetration in some major countries.”
The strategic swap lays the foundation for both companies to reach size and scale in two highly attractive pharmaceutical activities.