(Reuters) - Sanofi has held
talks with Abbott Laboratories, Mylan and private equity firms over the possible
sale of a 6.3 billion euro (5 billion pounds) portfolio of mature drugs,
according to an internal document seen by Reuters.
The 25-page document, a copy
of which was circulated by the CGT union on Wednesday, details a plan presented
to the company's investment committee on May 6 dubbed the "Phoenix
project".
It shows Sanofi is considering
whether to sell, carve out or create a joint venture for a portfolio of some
200 mature drugs that includes blood thinner Plavix, anti-epileptic Depakine
and antibiotic Pyostacine.
The portfolio currently
accounts for annual sales of about 2.1 billion euros but these are projected to
drop by two-fifths in the next decade as European countries tighten healthcare
budgets and impose lower drug prices.
No decision has yet been made
on the portfolio, a Sanofi spokesman said.
"Materials and studies on
different topics are regularly presented to the investment committee, and it
doesn't always take action or render decisions based on presented
materials," he said in an emailed statement.
Reuters had reported in April
that Sanofi was looking to sell a multi-billion portfolio of mature products,
as drugmakers worldwide seek to shed non-core assets and focus on high-growth
areas.
The Phoenix project aims to
minimise exposure to price cuts, reduce Sanofi's manufacturing in Europe and
free up cash, according to the document. It would concern six manufacturing and
distribution sites and some 2,600 staff in Europe, mainly in France, Spain, Italy and Germany. The document shows that as of May, Sanofi had
begun talks with Abbott, Mylan and private equity firms TPG and Warburg Pincus
as potential buyers or venture partners.
It adds that Pfizer, Otsuka
and Teva were not interested in the portfolio, while talks with AstraZeneca and GSK were still pending.
The CGT union said in a
statement it planned to bring the document to the attention of the French
government to denounce what it called Sanofi's "capitalist Monopoly
game" and to protect local jobs. "It shows that management's strategy
is to withdraw from Europe and particularly from France," the union said.
Drug companies are increasingly looking to shed smaller divisions they view as
non-core so they can better focus on their mainstay products. They have also
shown willingness to consider large asset swaps with rivals to exit weaker
businesses and reinforce core areas where they are already top players.