Sanofi creates a leading company in the market
Sanofi‘s (NASDAQ: SNY) The long-standing transition from a large traditional pharmaceutical company to a specialist developer of new drugs took another big step forward on Tuesday, when it chose Euroapi as the official name of its spin-off of manufacturing active pharmaceutical ingredients. (API).
Euroapi will start with a portfolio of over 200 APIs and annual sales expected to reach $ 1.2 billion in 2022. In the highly fractured API sector, Euroapi will be the leading small molecule API manufacturer and the second in the world -the largest API maker overall.
Sanofi will retain a 30% stake in Euroapi, but the split will bring together a new management team headed by Karl Rotthier, former CEO of Centrient Pharmaceuticals. His appointment will allow Sanofi to focus on the development of new drugs.
Yesterday, Sanofi acquired a developer of cancer therapies called Kymab for $ 1.1 billion in advance. This gives Sanofi the rights to Kymab’s KY1005 antibody to OX40, a potential new treatment for eczema that produced convincing results in a Phase 2 trial last August.
Sanofi is having great success with an eczema treatment launched a few years ago called Dupixent. Developed in partnership with Regenerate (NASDAQ: REGN), Dupixent currently generates approximately $ 4 billion in annual sales.
Sanofi believes Dupixent sales will exceed $ 12 billion at its peak, if the company can pilot its blockbuster through expanding drug approvals. With that in mind, diverting less management resources to running an API business seems like the right decision.
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