Doliprane-maker Sanofi confirms exclusive talks with US firm CD&R

The American private equity firm has agreed to French government demands about protecting jobs and investment in France.

French pharmaceutical group Sanofi and US private equity firm Clayton Dubilier & Rice (CD&R) have entered exclusive negotiations regarding the partial takeover of Sanofi subsidiary Opella.

The news comes after the French government agreed to buy a 2% stake in Opella and to hold a seat on the board.

BpiFrance, the state-owned investment firm, will spend between €100m and €150m on the stake.

The breakthrough was also made possible by a series of commitments promised by CD&R and Sanofi.

Under fresh terms, Opella jobs in France will be protected – or a penalty of €100,000 must be paid per position lost.

The firms have also agreed to maintain Opella’s headquarters and R&D activities in France, and they plan to invest a total €70m in the country over the next five years.

Anger over US purchase

The news that Sanofi was seeking to sell half of Opella to a US firm provoked fierce backlash in France earlier this month.

Although Sanofi is set to retain roughly half of the business, the announcement provoked fears surrounding French jobs and medicine shortages.

Since the Covid-19 pandemic, when citizens found themselves unable to source certain drugs, conversations around onshoring pharmaceutical production have become all the more pressing in France.

Opella is best known for its emblematic brand of paracetamol, Doliprane, that holds the title as the country’s best-selling drug.

Sanofi retains some control

In line with the terms of the new deal, Opella holds an enterprise value of around €16bn.

“The offer from CD&R is binding and fully financed,” said Sanofi in a statement on Monday.

“CD&R has a long history of investment in Europe and the firm’s experience building French national champions and supporting French jobs goes back more than twenty years,” it added.

Sanofi nonetheless clarified that, by remaining a significant shareholder in Opella, it would “retain a part of the future value creation of the company”.

If the state gives the formal green light to the sale, it is now expected to be finalised in the second quarter of 2025 at the earliest.