Sanofi has agreed to divest five of its over-the-counter consumer healthcare products in Europe to French pharma firm Ipsen for €83m.
The divestiture from Sanofi will fulfill the European Commission’s requirement related to the former’s deal with German drugmaker Boehringer Ingelheim.
The deal includes Prontalgine, an analgesic for the treatment of moderate to severe pain.
Available only in France, Prontalgine is said to have taken its sales revenue in double digit rates in the last four years or so.
Ipsen is also buying antispasmodic treatment Buscopan, laxative treatment Suppositoria Glycerini, and cough and flu products Mucothiol and Mucodyne.
For Ipsen, the acquisition would speed up conversion to OTx business model by leveraging its Primary Care business infrastructure.
Ipsen CEO David Meek said: “This tactical bolt-on transaction resulting from the European Commission’s requirement to divest certain assets from the Sanofi / Boehringer Ingelheim consumer healthcare deal strengthens our consumer healthcare portfolio in France with the addition of Prontalgine.
“The opportunity immediately improves the profitability profile of Ipsen’s Primary Care business. It adds a limited portfolio of well-established and market leading brands in a key market such as France.”
Put together, the five regional consumer healthcare brands cover a geographic scope of eight countries in Europe. Their manufacturing for Ipsen will be handled by third parties.
Ipsen Primary Care executive vice president Jean Fabre said that the new assets from Sanofi would expand the company’s Primary Care’s OTx portfolio besides improving its value proposition to consumers.
Fabre added: “The products are fully synergistic with our existing infrastructure, and the key asset Prontalgine, a well-established and growing market player for pain management in France with mid-30% market share, will help us achieve a critical mass at the pharmacy level, accelerating the development of our consumer healthcare business.”
The acquisition is likely to close in the second quarter of the year upon meeting of customary closing conditions which includes an approval from the European Commission.
Ipsen is planning to finance the transaction through its cash in hand and lines of credit.