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Sanofi is moving to strengthen the “health & wellness” of its Consumer Healthcare business with the addition of market-leading supplement brand Qunol.

On July 28, the Parisian company, which maintains one of its two flagship U.S. locations in New Jersey, announced it entered into a definitive agreement to acquire the Pine Brook-based maker behind the U.S.’s “No. 1 Brand of CoQ10,” bringing a boost to Sanofi‘s Vitamin, Mineral and Supplements category.

The transaction is expected to close in the third quarter of 2023, subject to customary closing conditions, including applicable regulatory approvals. Financial terms were not disclosed.

Founded in 2006, Qunol is a leader in VMS, particularly in the “healthy aging” segment, that is sold by retailers including Walmart, Amazon, Target, CVS and others. According to the brand, its products use a unique technology that allows for better absorption of nutrients. In addition to its heart health-focused CoQ10 and Tumeric products for joint health, Qunol offers supplements focused on better sleep, to deliver Omega-3 and more.

VMS is one of the largest and fastest-growing U.S. consumer health categories. The global vitamin/supplements market is estimated at nearly $48 billion in 2021 and projected to reach more than $98 billion by 2031.

According to Sanofi, the deal adds a “trusted, profitable double-digit growth brand” to its U.S. portfolio.

“The acquisition of Qunol further strengthens our portfolio in the wellness category. It taps into the growing ‘healthy aging’ segment and fills one of our white spaces in the U.S., unlocking an opportunity for us to build on our U.S. presence and accelerate our growth,” Julie Van Ongevalle, executive vice president, Consumer Healthcare at Sanofi, said in a statement.

“VMS now functions as long-term support for overall health and wellness where proactive preventive health has become the new norm post-pandemic,” she continued. “We are excited to welcome Qunol and, with this addition to our consumer health care portfolio, reinforce our commitment to bring more health into the hands of people.”

Qunol CoQ10 and Turmeric products are both backed by science literature and strong market positioning in their segments, Sanofi said in its announcement, which has in turn boosted its brand equity among consumers and customers, as well as above category consumer loyalty.

In January, skateboard legend Tony Hawk signed on as Qunol’s brand ambassador. While he takes the CoQ10 to pair with his physician-prescribed statin medication to manage high cholesterol, according to Qunol, the Tumeric Gummies “are a personal favorite.”

“Skating for over 45 years has obviously taken a toll on my body. I take turmeric to help with healthy joints and inflammation support,” Hawk said in January when the partnership was announced. “I enjoy the Qunol Turmeric gummies which have superior absorption compared to regular5 turmeric. They taste great and are helpful to my recovery after a heavy skate session.”

Mutually beneficial

As part of the global health care company, the Qunol brand will benefit from the resources of the CHC segment, allowing it to expand into other chronic conditions and develop its footprint outside the U.S.

“Qunol is looking forward to joining Sanofi’s consumer health care team and developing synergies that will further drive brand awareness for our products with our consumers and customers. With Sanofi, we have the opportunity to further grow in the U.S. and beyond, tapping into Sanofi Consumer Healthcare’s commercial breadth and strength,” said Peter Boutros, CEO, Quten Research Institute LLC, which manufactures and distributes Qunol products.

News of the acquisition came the same day Sanofi released results for the second quarter of 2023.

For Q2, the company reported an overall 0.7% increase in CHC sales. In the U.S., segment sales fell by 23.3% to approximately $276 million (251 million euros), which the company said was mainly reflective of unfavorable phasing as a result of the inventory built in the first quarter and lower sales performance.

Other highlights from the quarter include the U.S. Food and Drug Administration approving Sanofi and AstraZeneca’s preventative RSV (respiratory syncytial virus) treatment, Beyfortus (nirsevimab-alip) and the company’s recent B Corp certification.