French drugmaker Sanofi (Euronext: SAN) and German pharma firm Boehringer Ingelheim have signed a definitive agreement for a business swap announced late last year.
Under the deal Sanofi will exchange its animal health business with Boehringer Ingelheim’s consumer healthcare businesses, the companies said in a joint statement. The transaction is expected to close by year-end 2016.
Andreas Barner, chairman 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.”
Upon successful completion, Boehringer Ingelheim’s CHC business, valued at €6.7 billion, would be transferred to Sanofi and Sanofi’s Merial, valued at €11.4 billion – would be transferred to Boehringer Ingelheim.
The transaction includes a cash payment to Sanofi of €4.7 billion to reflect the difference in the value of the two businesses.
Sanofi expects the deal to add to its earnings after 2017.
Olivier Brandicourt, chief executive of 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.”
http://www.pharmafile.com/news/505354/sanofi-boehringer-ingelheim-sign-definitive-agreements-swap
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