France Takes Stake in Sanofi Unit in €16 Billion Deal

Sanofi sells off its generics unit to Advent and Blackstone-backed firm

Deal completed just in time to make it easier to acquire Horizon Therapeutics

France has acquired a stake in Sanofi's generics unit as part of a €16 billion sale to the private equity firm Advent International and the Blackstone Group. The deal, which was first announced in July 2023, will see Sanofi sell its Zentiva unit, which makes generic and biosimilar medicines, to the private equity consortium. The deal is expected to close in the first half of 2024, subject to regulatory approvals.

The French government has acquired a 12% stake in the new company, which will be called Viatris. The government's investment is intended to protect jobs and ensure that the company remains headquartered in France. Viatris will be one of the world's largest generic drugmakers, with annual sales of around €11 billion.

The sale of Zentiva is part of Sanofi's ongoing strategy to focus on its core businesses, which include prescription drugs and vaccines. The company has been divesting non-core assets in recent years, including its animal health unit, which it sold to Boehringer Ingelheim in 2017.

The proceeds from the sale of Zentiva will be used to help fund Sanofi's acquisition of Horizon Therapeutics, a U.S.-based biotech company. The deal, which was announced in December 2022, is expected to close in the first half of 2023.

Horizon Therapeutics specializes in developing and commercializing medicines for rare diseases. The company's products include Tepezza, a treatment for thyroid eye disease, and Krystexxa, a treatment for gout. The acquisition of Horizon Therapeutics will give Sanofi a stronger presence in the rare disease market.