Sanofi, a French pharmaceutical company, is preparing to say goodbye to the iconic yellow Doliprane, a popular pain reliever, which it acquired twenty years ago when it absorbed Aventis. This decision has caused some friction between the French government and the pharmaceutical industry leader. In October 2023, Sanofi announced its intention to divest Opella, its over-the-counter medicine subsidiary that includes around one hundred products, including the popular pain reliever sold in French pharmacies.
The French government had expressed its desire for Sanofi to retain Opella, but the company has decided to proceed with the sale. The government has stated that they will closely monitor the sale to ensure the preservation of production capacities in France, emphasizing that the paracetamol produced in France should remain in the country. This situation echoes a similar case with Servier, another pharmaceutical company looking to divest its subsidiary Biogaran, the leading generic drug manufacturer in France.
To address the controversy surrounding the sale of Opella, Sanofi is considering retaining a significant minority stake in the subsidiary to maintain some level of control. Additionally, the company may also explore options such as selling a portion of the business to a private entity or conducting an initial public offering (IPO), allowing Sanofi to retain a portion of the capital of the consumer health division. The company has not yet finalized the details of the divestment of its subsidiary, but there is significant interest from potential buyers.
Various candidates, including the French investment fund PAI and the American company Advent, have expressed interest in acquiring Opella. Advent previously acquired Zentiva, Sanofi’s former generic drug subsidiary, for 1.9 billion euros in 2018. Several indicative offers were reportedly submitted in mid-July, indicating a competitive process for the sale of the subsidiary. Despite the decision to part ways with Opella, Sanofi aims to reassure the public that the iconic Doliprane will continue to be available in France, regardless of the outcome of the sale.
The potential sale of Opella has raised concerns about the future production and availability of paracetamol in France, as well as the impact on Sanofi’s overall strategy. The government’s emphasis on maintaining domestic production capabilities reflects broader concerns about the sovereignty of pharmaceutical supply chains. As Sanofi evaluates its options for divesting Opella, stakeholders will closely monitor the process to ensure a smooth transition and preserve the availability of essential medicines in France. The competitive interest from potential buyers indicates that the sale of the subsidiary may attract significant attention from industry players looking to expand their portfolios.
