New Delhi: Drug firm Sanofi India on Wednesday said its board has approved the demerger of its consumer healthcare business into a separate entity. The company's board has approved the Scheme of Arrangement between Sanofi India Ltd (SIL) and its wholly owned subsidiary Sanofi Consumer Healthcare India Ltd (SCHIL), the drug maker said in a statement. The initiative is to demerge SIL's consumer healthcare business into a legal entity, SCHIL, subject to approval by shareholders and regulators, it added.

This decision will open new gates for the India business and employees in a value-driven move to accelerate growth for both the pharmaceuticals business (SIL) and consumer healthcare business (SCHIL) in India, the drug maker said. Upon completion of the proposed demerger, Sanofi will continue to own 60.4 per cent stake in both entities and SIL shareholders will receive 1:1 SCHIL equity share of Rs 10 each, for each equity share owned. Rodolfo Hrosz, MD, Sanofi India, said: “This is a momentous opportunity as it will allow Sanofi to unlock and maximise its business potential in both pharmaceuticals and consumer healthcare, with the right assets, structure, and strategy.”

The pharmaceuticals business will focus on its long-term success factors, expanding its portfolio of life-changing treatments available in India, and accelerating its digital transformation to improve the lives of patients in India, he added.