Sanofi Plans to Spin Off Drug Ingredient Business
Sanofi (NASDAQ: SNY) announced on Monday that the company intends to spin off its drug ingredient manufacturing assets into a separate business. This new entity, which doesn't have a name yet, will employ over 3,100 employees and own six active pharmaceutical ingredients (API) factories in the UK, France, Germany, Italy, and Hungary.
The pharmaceutical giant went on to say that this new spinoff would become the second-largest API manufacturer in the world, with expected sales of around $1.1 billion in 2022. Sanofi would become a customer to this new API business while owning a 30% minority stake while the remaining 70% will be floated on the Paris stock exchange via an initial public offering (IPO).
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Source Fool.com
