Matt Hancock welcomes pharmaceutical giant's plans for its Haverhill site
Haverhill's MP Matt Hancock believes Sanofi's proposal to combine its Haverhill plant with five others to create a new global company focused on the production of Active Pharmaceutical Ingredients (API) will be good for the future of its workforce.
The project consists of creating a standalone company which would combine Sanofi’s API commercial and development activities with its API production sites in Brindisi (Italy), Frankfurt Chemistry (Germany), Haverhill, St Aubin les Elbeuf and Vertolaye (France) and Újpest (Hungary).
With increasing medicine shortages that critically impact patient care, the new entity would contribute to supporting and securing API manufacturing as well as supply capacities for Europe and beyond.
Mr Hancock, who is also the Secretary of State for Health and Social Care, said: "I welcome the news that Sanofi, a major employer in Haverhill, will be forming a new company to combine commercial and production activities and then will possibly go public on the stock market with an IPO.
"What’s very encouraging is that Sanofi, with its increased production, can be a major player and will be able to compete with Asian suppliers, thereby reducing our reliance on those markets for key pharmaceutical ingredients. "Sanofi has big plans for the future and this will be of benefit to all associated with the company in Haverhill."
Jim Moretta, site head and general manager for Sanofi in Haverhill, said: "Our facility here in Haverhill has incredible talent and global-leading pharmaceutical manufacturing technology, and we believe its potential will be unlocked as part of the new company Sanofi plans to create.”
In Europe, the new API industry champion is expected to help in balancing the industry’s heavy reliance on API sourced from the Asian region.
The new company would rank as the world's second largest API company with approximately €1 billion in expected sales by 2022.
It is expected to include 3,100 skilled employees and to be headquartered in France.
A planned IPO on Euronext Paris would be evaluated with a decision expected by 2022, subject to market conditions.
Philippe Luscan, Executive Vice President, Global Industrial Affairs at Sanofi, said “Based on the expertise and experience built over decades within our industrial network, this new entity would help ensure a greater stability in supplying drugs to millions of patients in Europe and beyond.
"With this endeavour, this new entity would be agile as a standalone company, and able to unlock its growth potential, especially in capturing new third-party sales and all the opportunities of a market growing at a pace of 6 per cent per year.”
By operating independently, the new entity plans to increase its sales to third parties and to expand its partnerships with other pharmaceutical companies in order to take advantage of new growth opportunities and have the ability to deftly adapt to customer needs.
The new company would be uniquely positioned to benefit from its significant competitive strengths, including a broad portfolio of both volume and niche products, high standards of quality, competitive pricing, state-of-the-art industrial capabilities and technologies across Europe (including France, Italy, Germany, Hungary, and the United Kingdom) as well as leveraging an extensive commercial network covering more than 80 countries.
Sanofi is fully committed to the new company’s success and intends to establish a long-term customer relationship with the new API supplier and to hold a minority stake of approximately 30 per cent in the new company.
To provide the optimal conditions for success, Sanofi intends the new company to be debt free in order to maximize its future investment capacities, and is committed to remaining an important customer.
More by this authorSteve Barton