Sanofi, CD&R Ink Deal to Support Consumer Healthcare Company Opella

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Sanofi and CD&R have announced a joint venture aimed at supporting the growth of Opella, a French healthcare company. According to Sanofi, the company would potentially sell a 50% controlling stake in Opella to CD&R, while staying on as a significant shareholder. The deal aims to set up Opella as a standalone, global leader in consumer healthcare with a focus on innovative medicines and vaccines, according to Sanofi.¹

“We are proud of what Opella and its inspired people have already accomplished. We are confident that the future of Opella will be even brighter. We share the love and emotional attachment to Opella’s brands, hence our decision to remain vested in its future,” said Paul Hudson, CEO, Sanofi, in a press release. “We will support Opella on its path to become an independent company, grounded in talented people, a deep consumer expertise and a truly global presence with deep roots in France. Our chosen partner CD&R has demonstrated unique capabilities in the consumer space, with deep values of respect for employees, customers, communities in which they operate, and the environment. We also welcome Bpifrance as a supporter of Opella’s development journey. At the same time, Sanofi can focus even more in bringing innovative solutions to patients suffering from debilitating or life-threatening diseases or viruses such as RSV, COPD, or multiple sclerosis.”

Opella currently operates in 100 countries, with an estimated value of $17 billion dollars. Its portfolio includes brands such as Allegra, Doliprane, and Dulcolax, working in the OTC and vitamins, minerals, and supplements market. The proposed transaction is subject to the finalization of definitive agreements, completion of the appropriate social processes, and subject to customary statutory approvals. It is expected to close in Q2 2025 at the earliest.¹

“This is an exciting opportunity for CD&R to partner with Sanofi, one of the world’s leading healthcare companies, to support Opella’s ambitious management team as it invests in innovation and growth to create a French-headquartered, global consumer healthcare champion. Opella is differentiated by the quality of its brand portfolio and its highly skilled and motivated workforce,” said Eric Rouzier, partner, head, European healthcare, CD&R, in the press release. “We see significant opportunities to enhance Opella’s market leadership by leveraging our deep industry expertise, broad network of operating talents, and capital resources to position the company for accelerated growth. We look forward to supporting both its French operations, including Opella’s critical manufacturing footprint and advanced R&D capabilities, and further developing its global platform to better serve employees, consumers, and patients.”

Last week, Sanofi also announced that it had agreed to terms with Orano Med to codevelop radioligand therapies (RLTs) for rare cancers. The collaboration will focus on the discovery, design, and clinical development of RLTs based on lead-212 alpha-emitting isotopes, which have the potential to destroy cancer cells with little damage to healthy tissue. Under terms of that deal, Sanofi is expected to make an investment of approximately $325 million, a 16% equity stake in the new entity.^2,3

“This announcement is a major and exciting milestone in Opella's journey. Building on significant transformations, we have grown into one of the largest global players in our sector, bringing relevant innovation to more than half a billion consumers worldwide. Partnering with CD&R will allow Opella to unlock its full development potential, to further drive value creation and deploy the exceptional talent of our teams to become a leading company in the fast-moving consumer healthcare space. We are poised to continue leveraging our strong scientific roots to grow our iconic “love brands” to meet consumers’ evolving needs and make self-care as simple as it should be,” said Julie Van Ongevalle, president, CEO, Opella, in the press release.

References

1. Press Release: Sanofi and CD&R partner to fuel Opella’s ambitions in consumer healthcare. Sanofi. October 21, 2024. Accessed October 22, 2024. https://www.sanofi.com/en/media-room/press-releases/2024/2024-10-21-05-30-00-2965875

2. Sanofi, Orano Strike Deal to Develop Radioligand Medicines for Rare Cancers. PharmExec. October 17, 2024. Accessed October 22, 2024. https://www.pharmexec.com/view/sanofi-orano-strike-deal-develop-radioligand-medicines-rare-cancers

3. Press Release: Sanofi and Orano join forces to develop next-generation radioligand medicines. Sanofi. October 17, 2024. Accessed October 22, 2024. https://www.sanofi.com/en/media-room/press-releases/2024/2024-10-17-05-30-00-2964590