(Reuters) – French drugmaker Sanofi said on Friday it was looking into the separate listing of its Consumer Healthcare business from the fourth quarter of next year and that it plans to boost drug development at its core business.
“Sanofi is reviewing potential separation scenarios, but believes that the most likely path would be through a capital markets transaction, by creating a listed entity headquartered in France,” Paris-listed Sanofi said in a statement
The timing for the spin-off, which Sanofi said won’t happen before the the fourth quarter of 2024, will be set to maximize value creation for shareholders, Sanofi said, adding that it would consult with employee representatives on any planned deal.
Sanofi also said it expects 2024 adjusted earning per share to decline by a “low-single digit” percentage, citing increased spending on research and development and a higher tax rate, followed by a strong rebound in 2025.
Sanofi is targeting cost savings of a total of up to 2 billion euros ($2.11 billion) from 2024 to the end of 2025, of which most will be reallocated to fund innovation and growth, it added.
($1 = 0.9463 euros)
(Reporting by Ludwig Burger, editing by Tassilo Hummel)
