Sanofi Preparing Bioactivities Sell-Offs

Two months after agreeing to pay $1.7 billion for the Sterling Winthrop prescription drugs business from Kodak, French pharmaceutical and beauty group Sanofi is preparing the sell-off of its bioindustrial activities to help finance the acquisition.

Having sold its medical imaging interests to Hafslund Nycomed, Sanofi has to find a further $1.2 billion, according to Jean-Francois Dehecq. He noted that the sale of the bioindustrial business alone will enable the company to achieve this sum. Over 30 firms are said to be interested in the acquisition and talks are expected to begin in the next few weeks.

In 1993, Sanofi's bioindustrial sector generated sales of 7.1 billion francs. In the first half of 1994 the bioindustrial sector saw operating margins increase 16.5%. For more details of Sanofi's first half results see page 6.