Sanofi and Grigg Ingham plan to replace $25 billion in assets

This year's wave of mergers and acquisitions in the international pharmaceutical industry has not stopped at all. Sanofi and Grigg Ingham are also planning asset replacement restructurings since Novaral and GSK completed asset replacements, with Sanofi selling its animal division to Grigg Ingham and Grigg Ingham transferring consumer health to Sanofi for a total of $25 billion in assets.
Sanofi's Merial is last valued at 11.4 billion pounds ($12.5 billion) and Grigg Ingham's Consumer Healthcare (CHC) is valued at 6.7 billion pounds, so Grigg Ingeham will need to pay an additional 4.7 billion pounds to Sanofi, which will use the money to buy back shares in the company. With 6,600 employees in 150 countries, Merial's main pet products, livestock and veterinary public health operations, Grigg Ingham's CHC does not include the Chinese component.
The deal, which is expected to close in the fourth quarter of next year, will bring in revenues of 1.6 billion pounds for Griggingham's consumer health division, plus Sano's already 3.5 billion pounds will reach 5.1 billion pounds, starting in 2018, and Sanofi's share price has risen since the news was announced.
is not surprising that Sanofi parted ways with the animal division, which the company said earlier this year would deal with. Still, the approach came as a shock to market participants, as Sanofi had previously considered an independent IPO or spin-off of the animal division.
Sanofi announced that the deal significantly strengthened Sanofi's consumer health division, increasing sales in the sector to 5.1 billion pounds, making it a leader in the sector. Grigg Ingeham's consumer health department will complement Sanofi's sales of short boards, including the cough and cold industry, which has reached critical levels in Germany and Japan. Overall, Sanofi will have a global market share of 4.6%.
's strategic vision was described in a comparison last month with big drug companies such as Sanofi, which are slimming down in order to refocus on an area of expertise and spin off non-main divisions or products. A representative example is Novartis's purchase of GSK's oncology division with a vaccine division and the divestiture of Consumer Health to a joint venture led by GSK. Mercator also sells consumer health to Bayer, and AstraZeneta sells some of its products while aggressively buying respiratory combinations like Almirall.
Of course, this wave of weight loss has been much less thanks to pharmaceutical giant Pfizer, which has been embarking on a series of slimming projects since a long time ago, from selling its nutrition division to Nestle to selling animal health to Zoetis. Pfizer and Aer Lingin also completed a $150 billion century acquisition this year, which is only the beginning, and industry insiders are now expecting the company to be further split into two pieces: one focusing on innovative drug therapies and the other focusing on the operation of older and lower-cost drugs, including generics.
's statistics, which ended in September 2015, show that the total value of mergers and acquisitions in the biotechnology and pharmaceutical industries has reached a record $235 billion this year, especially with the recent Pfizer-Aer Lingen merger, which means this year will be an unprecedented year for mergers and acquisitions in the biotechnology and pharmaceutical industry. (Bio Valley)