February 25, 2020 -- French pharmaceutical developer Sanofi announced on February 24 that it plans to expand operations by establishing a new independent company to target the active pharmaceutical ingredient (API) market in Europe.
The new standalone company will be headquartered in France and will provide APIs to third-party pharmaceutical companies in more than 80 countries. It will support Sanofi's existing commercial and development activities with six European API production sites: Brindisi (Italy), Frankfurt Chemistry (Germany), Haverhill (UK), Saint-Aubin-lès-Elbeuf (France), újpest (Hungary), and Vertolaye (France).
In making the announcement, Sanofi said the new firm will protect the supply chain and address medicine shortages around the world.
The new firm will be based in France, and Sanofi plans an initial public offering through Euronext Paris, a European stock exchange. The company's sales are expected to surpass 1 billion euros by 2022 (over $1.088 billion), which would place it as the No. 2 API manufacturer in the world.
Sanofi plans to remain a long-term customer with the new company and hold a minority stake of approximately 30%.