Boston, MA 05\/01\/2014 (wallstreetpr) –\u00a0Sanofi SA (ADR) (NYSE:SNY)<\/b> is on the verge of selling its older drugs portfolio. The portfolio is reported to be made up of drugs targeted at the treatment of cardio-metabolic conditions and high blood pressure. The drug portfolio fetches about $3.7 billion in annual revenue, according to people with insider knowledge.<\/p>\n
Though talks about the divestment of the old drugs business are already in the public domain, the French drugmaker has not come out to confirm the rumors. However, sources say the company could generate up to $8 billion from the sale of the older drugs business as it seeks to walk out of non-core operations.<\/p>\n
According to sources, Sanofi SA (ADR) (NYSE:SNY) hired Evercore Partners as its financial adviser to help with the divestment deal where the company has already made contacts with potential buyers. And those potential buyers are reportedly specialty pharmaceuticals and generic drugmakers.<\/p>\n
Drug companies realign<\/b><\/p>\n
Though Sanofi would not come out clearly over the rumored sale of older drugs division, realignment is everywhere in the pharmaceutical space. Several drug companies are already in asset sale or swap deals while several others have plans to consolidate as they focus on core businesses.<\/p>\n
One of the recent big pharmaceutical deals include the $20 billion asset transfer agreement between GlaxoSmithKline PLC (ADR) (NYSE:GSK)<\/b> and Novartis AG (ADR) (NYSE:NVS)<\/b>. The two giant drug companies announced a deal that will see GSK obtain a business unit from Novartis while also entering into a joint investment in the consumer health.<\/p>\n
Revenue at stake<\/b><\/p>\n
Deals in the drug manufacturing industry can be linked to efforts by companies to avoid revenue loss and grow the same. In some instances, the acquiring companies are faced with large-scale expiration of marketing exclusivity of their blockbuster drugs. In other cases, targets are seeking to unload divisions that are burdensome to operate. And all this is happening to protect revenue loss or gain focus on high performance areas that can generate bigger revenue.<\/p>\n
Sanofi SA (ADR) (NYSE:SNY) is in the league of companies that seek to give up stake in businesses that are underperforming so as to increase focus on mainstay products.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/01\/2014 (wallstreetpr) –\u00a0Sanofi SA (ADR) (NYSE:SNY) is on the verge of selling its older drugs portfolio. The portfolio is reported to be made […]<\/p>\n","protected":false},"author":10,"featured_media":20821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[1734,1740,1735,1464,3599,3598],"stock_ticker":[],"class_list":["post-20820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-glaxosmithkline-plc-adr-nysegsk","tag-novartis-ag-adr-nysenvs","tag-nysegsk","tag-nysenvs","tag-nysesny","tag-sanofi-sa-adr-nysesny","entry"],"acf":[],"yoast_head":"\n