Sanofi's sale of shares in Opella sparks political debate

The French pharmaceutical company Sanofi has confirmed plans to sell a majority stake in its over-the-counter medication division to a U.S. investment fund. This move is causing significant political debate in France, as it is seen as a threat to national sovereignty in the area of essential medications. Manuel Bompard, a member of the left-wing party La France Insoumise, is urging the government to block the sale. The debate centers around the proposed 16 billion euro transaction between Sanofi and the U.S. fund Clayton Dubilier & Rice (CD&R) for Opella, a manufacturer of well-known drugs such as Doliprane. Sanofi is thus under pressure, and the French government under Prime Minister Michel Barnier has arranged a two-percent stake for the public investment bank Bpifrance in the subsidiary to safeguard against job cuts and outsourcing. Opella operates globally, with over 11,000 employees in 100 countries. According to Sanofi, CD&R is expected to help develop Opella into a leading global provider in the consumer healthcare sector based in France. However, critics still find the assurances inadequate, as memories of medication shortages during the Covid-19 pandemic remain fresh. Antoine Armand, France’s Minister of Economy, explained that an agreement between CD&R, Sanofi, and the government aims to ensure the maintenance of production facilities in France, research and development, as well as investments of at least 70 million euros over five years. Additionally, financial sanctions are threatened in the event of plant closures and job cuts. Nonetheless, the negotiations have not reassured Opella employees, as strikes have drastically reduced production. There is also criticism within the ruling party. Charles Rodwell, a politician from Macron’s EPR party, criticized the agreements as not being long-term enough and promised thorough parliamentary oversight. President Emmanuel Macron recently emphasized that the government has sufficient means to ensure national sovereignty against unwanted takeovers.