Sanofi Goes The Rival Way: Plans Separation Of Consumer Healthcare Unit
Portfolio Pulse from Vandana Singh
Sanofi SA (NASDAQ:SNY) plans to spin off its consumer healthcare business to increase investment in its drug-development pipeline and cut costs. The separation is expected to occur by Q4 2024. Sanofi is targeting cost savings of up to €2 billion from 2024 until 2025-end. The company reported a 10.4% decline in Q3 business operating income and a 4.1% decrease in revenues. However, consumer healthcare sales increased 4.6%. Sanofi reiterates its FY23 Business EPS guidance to grow mid-single-digit at CER.
October 27, 2023 | 11:44 am
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Sanofi's decision to spin off its consumer healthcare business could lead to increased focus on drug development and cost reduction. However, the company's Q3 results showed a decline in operating income and revenues.
The spin-off decision could potentially lead to increased focus on drug development and cost reduction, which could be beneficial for the company in the long run. However, the company's recent financial performance, with a decline in Q3 operating income and revenues, could negatively impact investor sentiment in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100