(Bloomberg) -- Bidders for Sanofi’s consumer healthcare unit are revising their offers in part to address concerns around potential liabilities related to a brand that sold talcum powder, according to people with knowledge of the matter.
French pharmaceutical company Sanofi had asked suitors to revise their proposals for the Opella business, Bloomberg News reported earlier this week. The new bids may exclude parts of the Gold Bond business, a brand that historically sold talc-based products, or seek to leave any future legal risks with Sanofi, said the people.
A number of consumer health companies that make talc-based powders have faced lawsuits in the past related to the cancer risks from asbestos. Talc is mined from the earth, and most talc deposits naturally contain asbestos.
A spokesperson for Sanofi said Gold Bond powders were free of asbestos. “Sanofi relies on a history of high-quality sourcing, manufacturing, and scientific testing to support that its Gold Bond powders never contained asbestos,” the spokesperson said by e-mail. “Any such claims, which have been previously disclosed, lack scientific support.”
€10 Billion Debt
The new bids may imply lower valuations and a smaller debt package to reflect the revision, said two of the people, asking not to be identified because the information is private.
A deal could value the unit at around €15 billion ($16.5 billion), people with knowledge of the matter have said. Banks and other lenders have been lining up more than €10 billion of debt to back the buyout.
Private equity firm Clayton Dubilier & Rice and rival PAI Partners had both previously submitted bids by last week’s deadline.
Representatives for both PAI and CD&R declined to comment.
Sanofi has made no final decisions regarding the sale and it continues to consider options, the spokesperson said.
Drugmakers including Johnson & Johnson face lawsuits from consumers who say its talc-based powders caused cancer. J&J maintains its now-withdrawn talc-based powders never caused cancer and it appropriately marketed its baby powder for more than 100 years.
--With assistance from Silas Brown.
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