The five drugs being sold by Sanofi include a pain killer called Prontalgine. The analgesic therapy for treating cases of moderate to severe pain is available only in France and has recorded double-digit growth over the last four years.
The other four drugs include cough and flu medicines Mucothiol and Mucodyne, antispasmodic drug Buscopan, and the laxative Suppositoria Glycerini.
The sale to Ipsen was finalized following bidding from multiple pharmaceutical companies through a competitive sale process.
Sanofi-Boehringer Asset Swap
Sanofi sold off the assets to Ipsen to meet requirements mandated by the European Commission (EC) under a previously-announced asset swap with German drugmaker Boehringer Ingelheim. (For more, see Sanofi Agrees to $25.1B Asset Swap.)
In August 2016, Sanofi secured EC approval for the proposed acquisition of Boehringer Ingelheim’s consumer health business. The EC mandated that Sanofi sell off a number of drug assets it had in several European countries before executing the 22.8 billion-euro ($25.1 billion) asset swap.
Under the deal, Boehringer will acquire Sanofi’s 11.4 billion-euro Merial animal-health business, and Sanofi will get Boehringer’s 6.7 billion-euro consumer-health operation, along with a cash payment of 4.7 billion euros.
Ipsen hopes that the addition of five established Sanofi products will bolster its product pipeline, and boost its revenues and profits. Ipsen expects to close the purchase by the second quarter of this year. The acquisition will be funded through Ipsen’s cash reserves and credit lines. (See also: Flat Prospects for Sanofi in the Near Future?)