Sanofi India Shares Surge on Demerger News

Sanofi India’s shares witnessed a significant surge today on the Bombay Stock Exchange (BSE) following the announcement of the company’s consumer healthcare business demerger.

The stock price hit a 5% upper circuit, reaching Rs 6,513.05 at 01:24 PM, marking an 11% increase from the opening level of Rs 5,850 (adjusted for demerger) on the BSE. In the past month, the stock has soared by an impressive 62% and is currently trading at an all-time high.

On the National Stock Exchange (NSE), Sanofi India’s shares rose by 3.4% to Rs 6,513.05 from the opening level of Rs 6,300. The company announced the demerger of its consumer healthcare business into a separate legal entity, Sanofi Consumer Healthcare India Limited, during a board meeting held on May 10, 2023. This strategic move is expected to unlock greater value and fuel sustainable growth models.

The demerger will allow each shareholder of Sanofi India holding one equity share as of the Record Date, June 13, 2024, to receive one equity share of Sanofi Consumer Healthcare India. This decision comes amidst the implementation of various government schemes like the production linked incentive (PLI) scheme and the Strengthening of Pharmaceutical Industry (SPI) scheme, which have greatly boosted the pharmaceutical sector.

Sanofi India’s well-established presence in chronic therapies focusing on diabetology, cardiology, gastro, and CNS products, along with its commitment to enhancing operational efficiency and launching new products, is poised to drive profitability and foster growth. The company’s 2024 annual report highlights its ‘India for India’ (IFI) strategy, aimed at accelerating innovation and focusing on all growth pillars, including diabetes, consumer health, product innovation, supply localisation, and strategic partnerships.

The company’s demerger paves the way for a more concentrated focus on niche therapy areas, expansion of its global pipeline in India, and optimization of growth potential in both the pharmaceutical and consumer healthcare sectors in the country. Sanofi India’s strategic positioning and dedication to advancing healthcare solutions are expected to further solidify its position in the market.