Sanofi, Boehringer in talks to exchange business

Drugmakers Sanofi and Boehringer Ingelheim are currently negotiating to exchange assets that would establish Sanofi as a global leader in consumer health care.

Under the proposed deal, Sanofi would swap its animal health business, a.k.a. Merial, for Boehringer Ingelheim's consumer health care business. The transaction would not include Boehringer's consumer health care operations in China.

French-based Sanofi would be given access to a variety of consumer health products, including vitamins, painkillers and antispasmodics.

"This transaction would allow Sanofi to become a world leader in the attractive non-prescription medicines market and would bring a complementary portfolio with highly recognized brands, allowing for mid- and- long-term value creation,” Sanofi CEO Olivier Brandicourt said.

If the asset swap takes place, Germany-based Boehringer would become the second largest animal health company in the world. Its combined portfolio with Merial would feature anti-parasitics, vaccines and pharmaceutical specialties. While both focus on companion animals, Boehringer also provides solutions for swine and Merial covers poultry.

“Boehringer Ingelheim Animal Health is and will stay strongly committed to bringing novel, innovation driven solutions to veterinarians and animal owners," Andreas Barner, chairman of the board at Boehringer Ingelheim, said. "Our combined Animal Health business would be well positioned for growth and emergence as a leader globally."

Sanofi and Boehringer expect the deal to be completed by the end of next year.