French drugmaker Sanofi’s announcement that it will sell its consumer healthcare stake to a US investment fund sparked a fresh political backlash on Monday, fueling fears the deal could result in a loss of sovereignty over major drugs.
Paris must “block the sale” by using powers to protect strategic sectors, Manuel Bompard, the head of the far-left France Unbowed (LFI) party, told the TF1 channel.
Politicians and unions have hit out at Sanofi’s proposed 16 billion euro ($17.4 billion) deal with US investment fund CD&R to take control of Opella.
The subsidiary makes family medicines including Doliprane brand paracetamol, whose yellow boxes dominate the French market.
Under pressure, Prime Minister Michel Barnier’s minority government said it had secured a two percent stake in Opella for public investment bank Bpifrance and “very strong” guarantees against job cuts and displacement.
Opella employs more than 11,000 people and works in 100 countries.
Sanofi says it is the world’s third largest business in the market for over-the-counter medicines, vitamins and supplements.
CD&R – which has a number of investments in France – would help Opel become a “French-headquartered and global champion in consumer healthcare”, the pharmaceutical giant said in a statement.
‘Just words’
But with memories of drug shortages still raw for many during and since the Covid-19 pandemic, critics say the defenses are too weak.
A small stake “will not give the French state a say in strategic decisions” in Opella, said Bompard, whose LFI dominates the left-wing alliance that is the largest opposition group against Barnier and President Emmanuel Macron.
Thomas Portes, also of the LFI, posted in X that the government had offered “no guarantees, just words”.
Economy Minister Antoine Armand said a contract between CD&R, Sanofi and the government included keeping production sites, research and development and Opella’s official headquarters in France, as well as investing at least 70 million euros over five years.
“Maintaining a minimum production volume of sensitive Opel products in France,” Armand added, including Doliprane, the digestive medication Lanzor and Aspegic brand aspirin.
There would be financial penalties for closing French production sites, laying off workers or not buying from French suppliers.
It includes Seqens, the company re-establishing production of Doliprane’s active ingredient paracetamol in France.
“The workers are not relieved at all by the latest developments,” said Johann Nicolas, a representative of the CGT union at Opella’s Doliprane plant in Lisieux (northern France).
He added that a picket has reduced the drug from about 1.3 million boxes per day to about 265,000.
The protections proposed in the agreement have also failed to win over some of the government.
Monday’s guarantees “in no way represent a long-term commitment, either in investment, supply or jobs,” Charles Rodwell, a lawmaker from Macron’s EPR party who has followed the case closely, told AFP.
It brought “rigorous” parliamentary oversight of the deal, including measures to “block” the sale if ministers fail.
Brand loyalty
Macron said last week that “the government has the necessary tools to protect France” from unwanted “capital ownership”.
The emotion over Opella sales is closely related to Doliprane.
Cases of non-opioid pain relievers for mild to moderate pain often cover entire walls of the pharmacy.
The drug comes in many doses – from 100 mg for babies to 1,000 mg for adults – and in tablet, capsule, suppository and liquid form.
It is so ubiquitous that the French call any paracetamol product Doliprane, even made by another manufacturer.
Sanofi, one of 12 global healthcare companies, says the planned spin-off is part of a strategy to focus less on over-the-counter drugs and more on innovative drugs and vaccines, including polio, flu and meningitis.
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