Sanofi addresses medicine shortages by creating API spin out

Sanofi has unveiled plans to create a spin-out company to produce active pharmaceutical ingredients (API) in Europe to third party drug makers.

To accomplish this, the French multinational will create a standalone company combining its API commercial and development activities with six of its European API production sites – in Italy, France, Germany, Hungary and the UK.

The creation of the new entity comes amid increasing medicine shortages that critically impact patient care. The new company will continue to support and securing API manufacturing, Sanofi said, as well as supply capacities for Europe and beyond.

In Europe, the new API industry champion is expected to help in balancing the industry’s heavy reliance on API sourced from the Asian region.

With approximately €1 billion in expected sales by 2022, the new company would rank as the world’s second largest API company. It is expected to include 3,100 skilled employees and to be headquartered in France.

“Based on the expertise and experience built over decades within our industrial network, this new entity would help ensure a greater stability in supplying drugs to millions of patients in Europe and beyond,” said Philippe Luscan, Executive Vice President of Global Industrial Affairs at Sanofi.

“With this endeavour, this new entity would be agile as a standalone company, and able to unlock its growth potential, especially in capturing new third-party sales and all the opportunities of a market growing at a pace of 6 % per year.”

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