 "Sanofi")
Shares of Sanofi India were locked in the 5-per cent upper circuit at Rs 6,513.05 on the BSE on Thursday at 01.24 PM as the stock turned ex-date for demerger of consumer healthcare business. The stock has gained 11 per cent from its opening level of Rs 5,850 (adjusted for the demerger) on the BSE, data shows. In the past one month, it has zoomed 62 per cent and is trading at its record high level.
However, on the National Stock Exchange (NSE), the stock was trading 3.4 per cent higher at Rs 6,513.05 from its opening level of Rs 6,300. It hit an intraday low of Rs 5,892.80. On Wednesday, Sanofi India closed at Rs 10,034.85 on the BSE and Rs 10,072.65 on the NSE (unadjusted to demerger).
The board of directors of Sanofi India, at its meeting held on May 10, 2023, had approved the Scheme of Arrangement among the company and Sanofi Consumer Healthcare India Limited. The board had announced the demerger of the Consumer Healthcare business into a separate legal entity, namely Sanofi Consumer Healthcare India Limited. The proposed demerger was poised to unlock greater value, as the consumer healthcare business is expected to build sustainable growth models.
Each member of Sanofi India holding one equity share in Sanofi India as on the Record Date i.e. June 13, 2024 shall be entitled to receive one equity share of Sanofi Consumer Healthcare India.
Various government schemes such as the production linked incentive (PLI) scheme and the Strengthening of Pharmaceutical Industry (SPI) scheme have propelled the growth of the pharmaceutical sector. The growth momentum of the Indian pharmaceutical industry is expected to continue in the coming years on the back of favorable government policies, increasing foreign investment, rising healthcare expenditure, rapid use of innovation and technology, and emphasis on domestic manufacturing of quality pharmaceutical products.
Also Read
With its well-established prowess in drug manufacturing, Sanofi India is well-positioned to capitalise on substantial opportunities in the domestic and international markets. The company's established presence in chronic therapies with a focus on diabetology, cardiology, gastro, and CNS products, rationalisation of operations and new product launches are expected to drive profitability and bolster its growth, the company said in its 2024 annual report.
"The company is steadily advancing its 'India for India' (IFI) strategy by implementing go-to-market initiatives, enhancing operational efficiency, and demonstrating its commitment to accelerate innovation. Through its IFI strategy, the Company focuses on all growth pillars, diabetes, consumer health, a combination of product innovation, supply localisation, and strategic partnerships," Sanofi India said.
The demerging will enable the company to focus on niche therapy areas, bring its global pipeline to India and optimise its growth potential in both pharmaceutical and consumer healthcare sectors in India, it added.
