Sanofi SA, the French pharmaceutical company, has announced plans to potentially separate its consumer healthcare division by listing it on the capital markets by the end of next year.
If the initial public offering (IPO) occurs, it would be the third of its kind following GSK PLC (LSE:GSK, NYSE:GSK)'s spin-out of Haleon PLC (LSE:HLN, NYSE:HLN) and Johnson & Johnson (NYSE:JNJ)'s demerger of chemist shelf staples.
According to reports, the move aims to increase research and development (R&D) spending in Sanofi's core drug business.
The timing is designed to maximise shareholder value, and consultations with employee representatives will occur before any deal is finalised.
CEO Paul Hudson stated that the core drug business has grown sufficiently to operate without the consumer healthcare division's cash flows.
Sanofi aims to focus its R&D on immunology and inflammation, building on the success of its drug Dupixent, co-developed with Regeneron.
It is targeting up to €2 billion (£1.68 billion) in cost savings from 2024 to 2025, primarily to fund innovation and growth.