By Adria Calatayud

Sanofi plans to split its consumer-healtchare and pharmaceutical operations, making it the latest big drugmaker to sharpen its focus on prescription medicines by offloading adjacent businesses.

The French company outlined the plan on Friday as part of a strategic update that includes increased investment in its pipeline and a cost-savings program.

Sanofi said it is evaluating potential separations options, but believes that the most likely path would be through a capital markets transaction, by creating a listed entity headquartered in France. The split could take place in the fourth quarter of 2024 at the earliest, it said.

The move will allow Sanofi to increase its focus on innovative medicines and vaccines, the company said. The split will create two entities and will enable each to pursue its own strategy, it said.

Sanofi was one of the few big pharma companies that still housed innovative drugs and consumer-healthcare operations under the same roof.

Johnson & Johnson earlier this year spun off consumer-health business Kenvue, which owns brands such as Band-Aid and Tylenol, and GSK last year separated its Haleon consumer arm. Other pharma giants such as Novartis and Pfizer made similar moves in recent years.

The plan remains subject to market conditions and consultation with social partners. Sanofi's consumer-healthcare business is present in 150 countries and employs more than 11,000 people, it said.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

October 27, 2023 02:20 ET (06:20 GMT)

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