Sanofi SA (NYSE:SNY) has reportedly initiated talks with Rothschild & Co. to explore the possibility of spinning off its consumer health division, which could potentially value the business at over $20 billion. 

Sanofi said the spinoff would allow it to increase its focus on innovative medicines and vaccines.

The separation is expected to occur by Q4 2024 by creating a publicly listed entity headquartered in France.

The consumer health unit of Sanofi boasts a portfolio inclusive of popular over-the-counter products like Phytoxil cough syrups, Icy Hot pain relief gels, and Dulcolax laxative tablets. 

While the discussions are in their preliminary stages, citing insiders, Bloomberg highlights that Sanofi may involve additional advisors in the future to expedite the spinoff process.

Price Action: SNY shares are down 0.68% at $45.42 during the premarket session on the last check Thursday.

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