Sanofi will reduce its stake in EUROAPI to 30% after listing.

Sanofi has announced plans to list its active pharmaceutical ingredient subsidiary EUROAPI on Euronext Paris by May 6, saying it is set to grow and increase profitability as a separate business.

Having been approved by the French markets regulator last week, the listing is set to take place after a vote by Sanofi shareholders on May 3. Shareholders will receive one EUROAPI share for 23 shares held in Sanofi.

The multinational confirmed its intention to retain a 30% stake in EUROAPI after listing, while France will acquire a 12% stake through public sector bank EPIC Bpifrance for €150 million. Up to 58% of EUROAPI’s shares will be distributed via a dividend in kind, in addition to a previously proposed €3.33 per share cash payout.

Sanofi’s largest shareholder, L’Oréal, has committed to a lock-up period of one year following the settlement of the distribution.

EUROAPI makes active pharmaceutical ingredients (APIs) for medicines and draws on six production sites in Italy, Germany, France, Hungary and the UK.

In 2021 it was the world's second largest manufacturer of APIs, including both small and large molecules such as peptides and oligonucleotides, and seventh in the global CDMO market in 2020.

Sanofi said in January that it expects the business to become the world's second-biggest API player with about €1 billion in revenue forecast for this year.

EUROAPI CEO Karl Rotthier said breaking away from Sanofi will allow the company to win over more Sanofi rivals as customers, cut costs and expand in high-margin drug development services and advisory.


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