In a challenging day for French pharmaceutical company Sanofi, shares experienced a sharp decline of 16% on the Paris Stock Exchange in just twenty minutes, marking its worst day in 29 years.
This collapse resulted in a loss of approximately 19.5 billion euros in the company's market value. This plunge occurred as a result of Sanofi's decision to separate its over-the-counter medication division and focus on the development of prescription medications starting in 2024.
The company communicated that this strategic reorientation would negatively impact its revenues in 2024 compared to its current figures, as they plan to invest in new drugs and technologies. This triggered a massive sell-off of Sanofi shares by investors.
Despite this situation, Sanofi recorded a net profit of almost 6 billion euros in the first nine months of the year, which represented a 13.2% improvement compared to the same period of the previous year, according to the quarterly results published.
The company's CEO, Paul Hudson, British, expressed his intention to focus on investing more in medications and vaccine development.
The separation of the over-the-counter medication division will be carried out before the fourth quarter of 2024 through the creation of an entity listed on the Stock Exchange headquartered in France, according to the company's official announcement.
Sanofi justifies this strategic change by stating that it will generate greater long-term value through the development of therapies and vaccines, despite the initial decline in its market value.
In recent years, a shift in the trend of the European biotechnology sector has been observed, with major pharmaceutical companies such as Pfizer and Johnson & Johnson having succeeded in separating their consumer product divisions.
With information from: CincoDías.
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