No plans to sell stake in consumer healthcare biz: Sanofi India MD Hrosz

As Sanofi is looking to demerge its consumer health business, Rodolfo Hrosz, managing director of Sanofi India talks about plans to accelerate the pharma business and beyond in an e-mailed interview with Sohini Das. Edited Excerpts:

Q. Sanofi Consumer Health India (SCHIL) is expected to be fully operational by the second half of 2024. Any plans to raise funds for that company next year?

A. The capital structure of the consumer healthcare entity (SCHIL), subject to approval by shareholders and regulators, is the same as today, wherein Sanofi group will hold a 60.4 per cent stake. The company has no intention to sell its stake. Sanofi India’s current consumer healthcare business is profitable and has a good working capital cycle as explained in our communication during the investor call earlier on Friday.

Q. Consumer brands have more traction than some of your pharma brands. Is that the reason behind the demerger?

A. The proposed demerger is an unequivocally value-driven move for the India business and employees. Pharmaceuticals and consumer healthcare have differentiated business models and this demerger will unlock growth opportunities and provide the right resources and ability to focus on their respective growth drivers. Like in the rest of the world, Sanofi’s consumer healthcare entity in India will be equipped by way of portfolio, specific global skills, and consumer-centric mindset to truly evolve as a fast-moving consumer healthcare company. At the same time, the general medicines business will focus on its long-term success factors, expanding its treatment portfolio available in India, driving world-class scientific engagement, and accelerating its digital transformation.

Q. How do you plan to renew focus on your core pharma brands, for e.g. diabetes therapy?

A. In Q3 2022, we deployed our new plan (‘in India for India’) that brought more focus to our high potential therapeutic categories. We streamlined from eight to three business units. This has already resulted in an acceleration of the business, with Q1 2023 being one of our best quarters in recent times. Going forward, we plan to continue to accelerate the pharma business by focusing even more on our key categories, driving innovation, localisation of portfolio, and expansion of our go-to-market (GTM) reach.

Our insulin portfolio today offers best-in-class insulin for better diabetes management. Our flagship brand Lantus is the most prescribed insulin brand in the analogue category and is placed third in the Indian pharmaceutical industry. Also, Toujeo has doubled its sales growth in 2022, in the first year of its cartridge launch. While Lantus is part of the National List of Essential Medicines effective April 2023, it is an opportunity for Sanofi to bring its benefits to many more patients.

There may be some transitional impact based on inventory holding, but, there is clearly potential for an increase in volume in this scenario as Lantus will be priced in line with biosimilars.

Diabetes management is beyond the pill and injection; and Sanofi has a well-established patient support programme (Saath7) that handholds people with diabetes in their insulin journey. 

Q. Can you share your plans for the vaccines business in India?

A. Our vaccines business is part of the company’s 100 per cent subsidy and not Sanofi India. There’s a good momentum for it in the private market. This is being driven by our focus on building healthcare professional and consumer education, and to restore vaccine confidence and coverage rates to the pre-Covid era. We continue to see strong northward trends for all our paediatric and adult vaccines, resulting from our concerted scientific collaborations with key opinion makers and healthcare professionals.