FILE PHOTO: The logo of Sanofi is seen during the annual results news conference in Paris, France, February 6, 2020. REUTERS/Benoit Tessier
PARIS (Reuters) – Sanofi (SASY.PA) plans to create a standalone company dedicated to making active pharmaceutical ingredients (API), components that are biologically active in a drug, and will decide whether to list it on Euronext Paris by 2022.
French drugmaker Sanofi said on Monday it would create the business on the back of the combination of its API commercial and development activities with six of its European API production sites in Italy, Germany, Britain, France and Hungary.
Europe’s pharmaceutical sector is highly dependent on raw materials and active ingredients from Asia, buying products from companies such as India’s Sun Pharmaceuticals (SUN.NS) and Aurobindo Pharma (ARBN.NS).
Sanofi said the new group will be headquartered in France, operate with at least 3,100 skilled employees and have sales estimated at around 1 billion euros ($1.08 billion) by 2022.
“Sanofi is fully committed to the new company’s success and intends to establish a long-term customer relationship with the new API supplier and to hold a minority stake of approximately 30% in the new company,” it said in a statement.
France’s CGT union said the announcement was detrimental to staff and was putting the future of factories at risk.
“Clearly, the management is willing to outsource production. Retaining a 30% stake in the new entity is purely to look good,” a spokesman for the union said.
Reporting by Matthias Blamont; Editing by Alexander Smith
more recommended stories
Oil prices fall as coronavirus case surge heightens demand fears
MELBOURNE/SINGAPORE (Reuters) – Oil prices slipped.
Dollar holds advantage as anxiety grows over rise in coronavirus cases
TOKYO (Reuters) – The dollar held.
Ex-Morgan Stanley diversity officer says bank slashed her budget by 71%
FILE PHOTO: The headquarters of Morgan.
Google sets 2025 leadership diversity goal, ends ‘tailgater’ ID checks
SAN FRANCISCO (Reuters) – Alphabet Inc’s.
Main Street’s boldest take on Wall Street in bankruptcy stock frenzy
NEW YORK (Reuters) – When Bryan.
Senate bill aims to improve aircraft certification after 737 MAX crashes
SEATTLE/CHICAGO/TRURO, Mass. (Reuters) – U.S. senators.
Transparency needed to restore trust after 737 MAX crashes: FAA chief
FILE PHOTO: Boeing 737 Max aircraft.
Global stocks jump on Fed support, easing second wave fears
TOKYO/HONG KONG (Reuters) – Asian shares.
Oil prices ease as coronavirus infections rise
TOKYO (Reuters) – Oil prices dipped.
Exclusive: U.S. companies can work with Huawei on 5G standards – Commerce Department
(Reuters) – The United States on.