French drugmaker Sanofi’s announcement that it will sell a majority stake in its consumer health division to a US investment fund has sparked a new wave of political backlash, with concerns about the loss of control over essential medications.
Paris is being urged to block the sale by using its powers to safeguard strategic sectors, according to Manuel Bompard, a senior lawmaker from the hard-left France Unbowed (LFI) party.
Politicians and unions have criticized Sanofi’s proposed 16-billion-euro deal with US investment fund CD&R for a controlling stake in Opella, the subsidiary responsible for producing well-known medications like Doliprane branded paracetamol.
In response to the pressure, Prime Minister Michel Barnier’s minority government has secured a two-percent stake in Opella for the public investment bank Bpifrance, along with strong guarantees against job cuts and offshoring.
Opella, which operates in 100 countries and employs over 11,000 workers, is described by Sanofi as the third-largest player in the global market for over-the-counter medicines, vitamins, and supplements.
CD&R, known for its investments in France, aims to help build Opella into a global consumer healthcare leader headquartered in France, according to Sanofi.
However, critics argue that the protections offered are insufficient, especially in light of recent drug shortages during and after the Covid-19 pandemic.
Despite the government’s insistence on maintaining production sites, research and development, and Opella’s official headquarters in France, as well as investing at least 70 million euros over five years, some remain unconvinced.
The proposed safeguards do not seem to reassure workers, with a union representative reporting disruptions in production at Opella’s Doliprane plant in northern France.
Even within the government camp, there are doubts about the long-term commitment of the deal, with some lawmakers pledging close parliamentary oversight to ensure that promises are kept.
The emotional attachment to Doliprane, a widely used pain and fever medication, has heightened concerns over the sale of Opella. The drug is so popular in France that people often refer to any paracetamol product as Doliprane, regardless of the manufacturer.
Sanofi’s decision to divest its consumer health division is part of a broader strategy to shift focus towards innovative medicines and vaccines, including treatments for polio, influenza, and meningitis.
In conclusion, the sale of Opella has raised significant concerns in France, particularly regarding the potential impact on access to essential medications. The government’s efforts to secure a stake in the company and impose safeguards have not fully allayed fears, with many calling for closer scrutiny and stronger protections to ensure the long-term security of these critical healthcare products.