Sanofi said it plans to separate its consumer health division, probably through a spinoff, as the French drugmaker deepens its focus on cutting-edge medicines and vaccines.

Sanofi is reviewing options for the potential split, but said the most likely course would be a “capital markets transaction” to form a separately listed company based in France. The move could occur as soon as the fourth quarter of 2024, it said in a statement Friday.

The announcement comes more than a year after GSK Plc spun off its consumer health division into a separate company, called Haleon Plc. The French drugmaker said that fully separating from the business will allow it to generate better long-term value from cutting-edge therapies, whether in immunology or with vaccines.

Sanofi’s updated strategy, outlined Friday, also includes increasing investments in its pipeline of experimental medicines, in part by cost-cutting measures designed to free up €2 billion over the next two years, it said.

“We are deepening our investment in R&D, taking steps toward becoming a pure play biopharma company, and further optimizing our cost structure,” Chief Executive Officer Paul Hudson said in the statement.

Because of the increased investments and a tax-rate change, the company expects that 2024 earnings will fall at a low-single digit rate compared to 2023 levels before a “strong rebound” occurs in 2025.

Sanofi reiterated its 2023 forecast for earnings per share to see mid-single-digit gains. The company also reported third-quarter earnings of €2.55 a share ($2.69), narrowly missing analyst estimates.