France’s Economy Minister has warned that the government could block the sale of a subsidiary of the French pharmaceutical company Sanofi to a US private equity firm if it cannot guarantee that its production of paracetamol, under the name Doliprane, remains in France.
"I want to be extremely clear: we will demand extremely precise, strong and tangible conditions," Economy Minister Antoine Armand told journalists Monday during a visit to a Doliprane production site in Normandy after Sanofi announced was negotiating to sell its consumer health branch, Opella.
Sanofi said Friday it was in talks to sell a controlling 50 percent stake in Opella, the subsidiary that produces Doliprane, to the private equity firm Clayton Dubilier & Rice for about €15 billion, as it tries to focus on spending on its core business of new drug development.
Doliprane is France's best-selling drug, and news that it could be sold, even in part, to a foreign investor prompted reactions from across the political spectrum.
Jordan Bardella of the far right National Rally criticised the “cutting up of France”, while leftists joined the call lambasting the loss of French drug sovereignty.
France has provided subsidies to drugmakers to boost production of medications that were in short supply after the Covid pandemic, which revealed an over-reliance on overseas suppliers.
National security
Even lawmakers who support the government called on a halt to the sale, “for our national security”.
After Sanofi's announcement, the finance ministry said in a statement that it could have "positive" impacts on Opella's development and its plants in France, but that the government would require commitments.
Those included the protection of its “industrial footprint” in France, and guaranteeing that the headquarters and decision-making centres would not leave the country.
Opella, which manages a hundred brands along with Doliprane, including Mucosolvan, Maalox and Novanuit, employs more than 11,000 people, 1,700 of them in France, where it has two production sites.
Armand on Monday said the government could block the deal if its conditions were not met and said it was even possible for the state to take a shareholding to protect France's interests.
"They must be respected and we will ensure they are respected using all the legislative and regulatory tools at our disposal," Armand added.
French governments in the past have moved to block sales of businesses it considers vital to national interests.
(with Reuters)
