Sanofi SA (NASDAQ:SNY) is in advanced talks to divest Seprafilm to Baxter International Inc (NYSE:BAX). Seprafilm is valued at up to $400 million. It is used to eliminate scars resulting from pelvic and abdominal surgeries. Sanofi intends to focus on cancer treatments to achieve rapid growth.
Products to reduce complications
Baxter is engaged in the production of surgical products that help to minimize complications arising from bleeding after and during surgery.
Sanofi inaugurates the bio-manufacturing facility
Sanofi has inaugurated a digital bio-manufacturing facility measuring 100,000 Sq. Ft. in Framingham on Tuesday. The new facility segregates finished products by taking in new materials. Sanofi has invested $320 million after acquiring in 2012 for the expansion of Genzyme Corp to develop proteins, cells, and other elements. The employees of Genzyme Corp have developed specialized equipment and processes for the bio-manufacturing facility of Sanofi. On the other hand, standard biotech production sites create molecular elements for the manufacture of drugs.
Digital tracking of the work done by employees reduces human errors. Sanofi hopes to FDA nod during the application of drugs.
Paul Hudson, Chief Executive Officer of Sanofi, is examining the long and short term strategy of Sanofi. He will present the plan to the investors in December 2019. Bio-manufacturing is part of his growth strategy and invested about $1.5 billion in the past five years. The competitors of Sanofi include Amgen and Novartis Corp.
In a chat with reporters, Hudson said manufacturing should offer a competitive advantage. The large pharma companies leverages commercial infrastructure and production facilities to partner with biotech startups in the regions of Boston. Astellas Pharma Inc., a Japanese drugmaker, is constructing a new manufacturing facility measuring 250,000 Sq. Ft. in Westborough for its partners.
Sanofi reduces debt
The debt of Sanofi declined to Euro 25.5 billion in 2019 from Euro 28.9 billion in June 2018. Its total cash is Euro 6.74 billion. Therefore, the total debt of Sanofi is Euro 18.8 billion. It expects receivables of Euro 7.23 billion within this year. Sanofi’s total liabilities are estimated at Euro 19.2 billion. Its obligations beyond those 12 months would be Euro 34.8 billion.