Sanofi (SAN) held talks with Mylan Inc. (MYL), Abbott Laboratories (ABT) and private-equity firms including Warburg Pincus LLC about a possible sale of a mature-products portfolio, according to an internal document.
The project to carve out 200 Sanofi products in Europe with about 2.1 billion euros ($2.8 billion) in estimated sales this year was nicknamed “Phoenix” in an internal company presentation dated May 6 that was circulated by a representative of the CGT union. He declined to say how the document was obtained. It also said Sanofi has been considering a partnership for the assets.
No decision has been made yet on the product portfolio, Jack Cox, a spokesman for Sanofi in Paris, said today by phone.
Mylan this week said it’s buying Abbott’s generic-drug business in established markets and forming a new company that would be incorporated in the Netherlands, cutting its taxes. The Mylan deal is among the first of the so-called spinversions, tax inversion deals in which a portion of a company is joined with another in a transaction that allows both to relocate.
The Sanofi document listed Mylan, Abbott, Warburg Pincus and TPG Capital as parties with which discussions were “ongoing,” while Teva Pharmaceutical Industries Ltd. (TEVA), Pfizer Inc. and Otsuka Holdings Co. were mentioned as parties that had declined discussions.
The Paris-based company also cited “pending discussions” with London-based AstraZeneca Plc and GlaxoSmithKline Plc. (GSK) The Sanofi assets to be carved out have an enterprise value of about 6.3 billion euros, the document said.
The stock rose 1.3 percent to 76.46 euros at the close of trading in Paris, giving the company a market value of 101 billion euros.
Abbott is “always interested in broadening and deepening” its portfolio in emerging markets, Abbott Chief Executive Officer Miles White said on a conference call with analysts today, in reference to mature products. “Businesses with similar products in Europe or the U.S. wouldn’t be of interest to us.”
Representatives for Mylan, Teva and AstraZeneca declined to comment while Glaxo didn’t immediately respond to requests for comment.
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