PARIS — May it’s a case of all bark however no chunk?
Paris has threatened to make use of all its heft to make sure the sell-off of a part of Sanofi’s over-the-counter enterprise stays producing sure medicines in France.
However, throughout a go to to Sanofi’s manufacturing unit in Normandy on Monday, France’s financial system and trade ministers appeared extra centered on reassuring employees and residents that that they had little to worry from the takeover by American fund CD&R, than threatening to dam the deal.
In earlier controversial takeovers, France’s highly effective financial system ministry didn’t hesitate to threaten a veto within the identify of French pursuits. This time issues appeared totally different.
Following a cross-party backlash in opposition to the deal, the 2 ministers traipsed out on the Lisieux paracetamol manufacturing unit and introduced alongside Sanofi’s high brass that the American takeover shouldn’t have any influence on French jobs and drugs provides.
“We shall be asking for terribly exact, sturdy and intangible circumstances concerning what occurs subsequent,” mentioned Financial system Minister Antoine Armand as he visited the paracetamol manufacturing unit with Junior Minister for Trade Marc Ferracci on Monday.
The financial system ministry advised reporters that Paris will launch an funding screening process into the deliberate sale of Sanofi subsidiary Opella to the American personal fairness agency for €15 billion. The federal government is looking for to conclude a deal between Sanofi, CD&R and the state, to pressure the customer to keep up jobs and investments in France.
The 2 ministers promised to maintain manufacturing of over-the-counter medication in France by threatening financial sanctions if these commitments usually are not revered. And, if wanted, the state might additionally purchase up shares of Opella and affect the corporate’s choices as a shareholder, Armand added.
In an indication that Sanofi and the federal government are on the identical web page, Armand and Ferracci visited the manufacturing unit with Sanofi Chair Frédéric Oudéa, a heavyweight monetary providers veteran who, till final yr, was CEO of French financial institution Société Générale for 15 years.
French President Emmanuel Macron additionally backed up this place, when requested at a separate occasion on Monday. “I might distinguish two issues: exercise in France and capital possession,” he mentioned, referring to commitments to keep up jobs, manufacturing and medicines in France.
“On capital possession, the federal government has the devices to ensure that France is protected. And so it’s as much as the federal government to take a look at that.”
However employees aren’t shopping for it. Staff on the Lisieux manufacturing unit, which produces paracetamol, are on strike as they oppose the deal which they worry might threaten their jobs and France’s drugs provide.
And French politics is on their aspect. On Friday, politicians from the entire political spectrum reacted with outrage to the information that Sanofi was in talks to promote a majority stake of Opella to CD&R, de facto placing Sanofi’s manufacturing of over-the-counter medication into American fingers.
Massive Pharmas promoting off their over-the-counter medication companies isn’t a brand new idea. Again in 2018, Sanofi off-loaded its cheaper medicines enterprise Zentiva to a U.S.-based personal fairness agency for €1.9 billion. The distinction this time other than the placement — Zentiva was based mostly within the Czech Republic, whereas Opella is in France — is that French residents nonetheless recall harrowing reminiscences of drug shortages from the pandemic.
Strategic autonomy examined
The omnipresent yellow containers of Doliprane, the model identify of Sanofi’s paracetamol, are probably the most offered drug in France. Shortages of medicines, together with paracetamol, in the course of the coronavirus pandemic marked French individuals and fueled Paris’ push for extra strategic autonomy.
“Doliprane will proceed to be produced in France, and never simply because it’s a drug that’s well-liked with all French individuals, not simply because it’s an industrial success story, however as a result of our nation’s sovereignty and the availability of delicate and significant medicines is at stake,” Armand promised.
France has been the front-runner within the European push to reshore drugs manufacturing again to the Continent and has given beneficiant subsidies to carry to France the total provide chain of key medicines like paracetamol.
The nation at present produces paracetamol solely because of the imported energetic ingredient. It’s planning to provide the energetic ingredient as of 2026 in a brand new French manufacturing unit to be opened by Seqens, additionally managed by an American fund, that can provide Opella.
An financial system ministry official mentioned the federal government would require the American purchaser to maintain the engagements with suppliers for a number of years and to purchase the energetic ingredient from Seqens.
Whereas promising to do every thing to maintain drugs manufacturing in France, the French authorities doesn’t sound hostile to the deal.
Prior to now, the French financial system ministry publicly expressed its opposition to transatlantic takeovers, from supermarkets to nuclear parts, killing off these offers.
This time, nevertheless, the tone could be very totally different; the federal government described the customer as “a critical funding fund that presents optimistic prospects for the general growth of Opella in addition to for the websites positioned in France.”