Sanofi Spin-off (API Business) Notes
January 14, 2021 Update
- Sanofi announced that it has a new name for its API business which it will spin off in 2022.
- The new company will be called EUROAPI (how creative!)
- The active pharmaceutical ingredient (API) business is Sanofi’s “made in Europe” solution to the region’s heavy reliance on materials sourced from countries like China and India—an issue thrown into relief by the COVID-19 pandemic.
- Pegged at €1 billion ($1.2 billion) in sales by 2022, the company “will rank number 1 in small molecules API, and number 2 on the global API market,” Sanofi estimates.
- Along with the new moniker, Sanofi tapped Karl Rotthier, former CEO of Dutch drugmaker Centrient Pharmaceuticals, to steer the EUROAPI ship. Rotthier joins as CEO of the business, which comprises six Sanofi sites in France, Italy, Germany, Hungary and the U.K., on Jan. 18.
- The company, with 3,200 staffers, will be based out of France, Sanofi said.
- The French Big Pharma plans to own about a 30% stake in the new company; plus, it says it will be one of EUROAPI’s first customers. Sanofi intends to decide by 2022 whether to launch an IPO for the company on Euronext Paris.