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Driplane, a leading treatment for fever and pain, has been in the headlines for its controversial sale to an American investment fund. The case caused an uproar, especially because of the exorbitant €200 million bonus paid to the CEO.
Dripplane, sale worries French government
This is news that shook the medical industry. Major French pharmaceutical company Sanofi will sell its subsidiary Opera (manufacturer of Driplane) to American investment fund CD&R.
Arnaud Montebourg revealed announcement On BFM TV on Wednesday, October 23, Opera director Julie Van Ongevalle criticized the €200 million “management package” (extraordinary bonuses given to executives) that she receives.
The French government reacted quickly to protect this strategic industry. The state’s financial arm, the Public Investment Bank (Bpifrance), will take a small stake (1-2%) in the company to monitor important decisions.
The government also made a commitment to invest an additional 70 million euros to modernize production and maintain French factories, particularly those in Lisieux and Compiègne.
Strict measures to protect French products
To ensure these commitments are kept, the government is planning significant financial sanctions.
- Fine of 40 million euros if production is stopped in France
- Fine of 100,000 euros for each redundancy
- The company faces sanctions of up to €100 million if it fails to produce the promised 250 million boxes of Driplane in mainland France.
The state will also investigate how Sanofi used public funds it received in recent years, particularly research tax credits, which are tax breaks given to companies that conduct research.
This sale raises an important question: How do we protect our essential medicines from large foreign groups?The reason behind this deal is that France has always been committed to making basic medicines such as Driplane affordable. This is because there is an important issue of ensuring availability at a price without the risk of shortages.
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