French government secures guarantees in sale of Doliprane to US fund

Sanofi has made the decision to sell a 50% stake in its subsidiary Opella, the producer of Doliprane, to Clayton, Dubilier & Rice (CD&R), an American investment fund.

The sale is expected to be completed by the second quarter of 2025 and values Opella at approximately €16 billion.

The French Government's Role

The French government has played a significant role in the negotiations, securing strong guarantees to protect French interests in the deal.

As part of the agreement, CD&R has committed to investing €70 million in France over the next five years to strengthen Opella's production capabilities.

The deal also includes various sanctions to ensure compliance, such as financial penalties for production stoppages and job losses.

Maintaining supply chains with French suppliers and subcontractors is also a requirement.

Bpifrance's Involvement

The French government has actively participated in the transaction, with state-owned investment bank Bpifrance set to acquire a stake in Opella.

This move aims to ensure French control over strategic assets in the pharmaceutical sector.

Bpifrance will be represented on the board of directors to protect the interests of the French state.

Preservation of Opella's Operations

The agreement guarantees the preservation of Opella's production sites and headquarters in France, as well as the continuity of research and development activities.

This commitment reflects the government's focus on job protection and maintaining essential pharmaceutical manufacturing within the country.

Sanofi's Retained Stake

Despite the sale, Sanofi plans to retain a significant stake in Opella, allowing the company to remain involved in its operations.

Sanofi's CEO, Paul Hudson, believes in Opella's potential for value creation and intends to focus on innovative medicines and vaccines.

Private Equity in the Pharmaceutical Industry

The sale of Doliprane to CD&R highlights the increasing involvement of private equity in the pharmaceutical industry.

It also reflects a trend of public-private partnerships as governments seek to protect national interests while fostering investment and innovation.

French Government's Commitment

The French government's vigilance in ensuring job security and production capabilities in France demonstrates its commitment to safeguarding the pharmaceutical industry.

This sale represents a strategic move by Sanofi with implications for the pharmaceutical landscape in France and globally.

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