07:06 AM EDT, 10/21/2024 (MT Newswires) -- Sanofi ( SNY ) said Monday it has entered into binding talks to sell a 50% controlling stake in French life sciences company Opella to CD&R in a deal valuing the company at about 16 billion euros ($17.37 billion).

CD&R's offer is binding and fully financed, and the deal is expected to close in Q2 at the earliest, subject to customary approvals, Sanofi ( SNY ) said.

Sanofi ( SNY ) also said it would remain a significant shareholder in Opella after the transaction, which will include an approximately 2% stake acquired by Bpifrance.

The sale of the stake in Opella, which focuses on over-the-counter consumer medications and vitamins, will help Sanofi ( SNY ) focus on "innovative medicines and vaccines," the company said. "Sanofi ( SNY ) can focus even more in bringing innovative solutions to patients suffering from debilitating or life-threatening diseases or viruses," said Chief Executive Paul Hudson.

Excluding Opella, Sanofi ( SNY ) said its preliminary business earnings per share in 2023 was 7.25 euros. The company said it now expects its 2024 business earnings to grow by at least a low-single digit percentage at constant exchange rates, compared with its previous guidance of between a table to a low single-digit percentage growth including Opella. "This upgrade is substantiated by an expected strong business performance in the third quarter," the company said.

For 2025, Sanofi ( SNY ) said it expects "a strong rebound" earnings per share at constant exchange rates.

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