Sanofi and Boehringer Ingelheim close 
business swap

The pharma companies confirmed that their strategic transaction signed in June 2016 has been successfully closed in most markets on January 1^st 2017. The closing of the acquisition of Merial in Mexico and the Merial and CHC swap in India have been delayed pending receipt of certain regulatory approvals but both are expected to close early 2017. Under the terms of the transaction, Boehringer Ingelheim will pay €4.7bn in cash to Sanofi because Merial is valued at €11.4bn while the value of Boehringer Ingelheim consumer healthcare (CHC) business Thomae is estimated at €6.7bn. 

“With this successful closing of the business swap with Boehringer Ingelheim, Sanofi is building a strong and innovative CHC Global Business Unit”, said Olivier Brandicourt, Sanofi’s Chief Executive Officer. The transaction, which does not include Boehringer’s CHC business in China, will make Sanofi the global number three in CHC, closely behind Bayer and GlaxoSmithKline/Novartis with expected pro forma sales of €5.1bn, €1.6bn thereof coming in from of Boehringer’s CHC business Thomae. With the deal, Sanofi strengthens its previously weak position in the important CHC markets Germany and Japan.

According to Hubertus von Baumbach, Boehringer’s Chairman of the Board of Managing Directors, the deal will improve Boehringer Ingelheim’s competitiveness in the Animal Health business segment “that is so strategically important to our company.” Boehringer will close up to vetmed leader Zoetis, a spin-out of Pfizer, with combined sales of Boehringer’s Vetmedica (€1.36bn) and Merial’s animal health business (€2.5bn) of €3.8bn in 2015.

Integration of Boehringer’s CHC business and former brands (including Buscopan, Dulcolax, Mucosolvan and Bisolvon) will be led by Alan Main, Executive Vice President Consumer Healthcare and member of Sanofi’s Executive Committee. The expanded Boehringer Ingelheim Animal Health business unit will be headed by Dr. Joachim Hasenmaier who will remain as Member of the Boehringer Ingelheim Board of Managing Directors.