We also see this morning that Sanofi apparently approached Abbott and Mylan about buying some of its older portfolio products in EU. In fact, they even talked to some private equity groups to spin these off. These products are no longer growing fast and are considered a distraction. Selling would give Sanofi some cash and they could focus their attention on more growth areas in their business.
The products would yield rought $3 B in revenues for whomever bought them and for Mylan in particular would bolster its portfolio and EU presence even further on top of the Abbott deal it did yesterday. Selling mature products is becoming the rage for Big Pharma as they try to cut costs, intensify focus, and move to higher growth areas. A similar deal of old for old occurred earlier this year between GSK and Novartis as each company dumped perceived weakness to build the others strength. It's all the rage and we should see more. So get that garage sale money ready. See Fierce Pharma and Bloomberg.
Posted by Bruce Lehr July 16th 2014.