Sanofi SA (Nasdaq: SNY) is seeking initial bids for its $20 billion consumer health division, while also preparing for a potential listing of the business. The Paris-based pharmaceutical giant has asked potential buyers to submit first-round bids by mid-July. Advent International and France’s PAI Partners are reportedly the most interested in acquiring the division, which includes products like Phytoxil cough syrups and Icy Hot pain relief gels.

Other firms considering bids include Blackstone, Clayton Dubilier & Rice, CVC Capital Partners, and TPG Inc. EQT AB, previously interested, is no longer pursuing the deal. PAI Partners hopes its status as the only French bidder will give it an advantage, though it may need partners due to the transaction's size.

Sanofi plans to retain a significant minority stake in the business post-sale, reducing the capital required from bidders. The company is being advised by Bank of America, BNP Paribas, Goldman Sachs, and Morgan Stanley, with Barclays, Deutsche Bank, and Jefferies Financial Group set to act as bookrunners if a listing proceeds. Sanofi announced its review of options for the consumer health unit in October 2023.

The company aims to generate better long-term value from cutting-edge therapies, particularly in immunology and vaccines, by separating the consumer health division. This move aligns with strategies of other big pharma companies like GSK Plc and Johnson & Johnson, which have also spun off their consumer divisions to focus on advanced therapies.

The potential sale could be one of the largest deals in Europe this year, amid a revival in healthcare transactions. The deal's progress coincides with a snap parliamentary election in France, which could impact its outcome if political turmoil ensues.

In related news, KKR and TPG have shown interest in the $11 billion Italian drugmaker Recordati SpA, while EQT is considering selling Karo Healthcare, potentially valuing the Swedish consumer-health business at over €2 billion ($2.1 billion).