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Investors - Ensuring sustainable growth
Investors - Ensuring sustainable growth

Investors

Ensuring sustainable growth

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Strategy

On November 6, 2015, Sanofi presented its strategic roadmap for the period 2015-2020.
The long-term strategy of Sanofi, a leading diversified global healthcare company, is based on four pillars:

 

 

 

Reshape the portfolio

Sanofi sustains its leadership in therapeutic areas where it is strong and well positioned:

  • Diabetes: Sanofi plans to develop its insulin franchise, strengthen its pipeline through external opportunities and lead the market shift to managing diabetes outcomes.
  • Cardiovascular: Sanofi is confident about the prospects for Praluent® and awaits the results of the cardiovascular outcomes trial in 2017 which should help to capture the drug's full potential.
  • Vaccines: Sanofi’s objective is to grow faster than the market through the launch of the dengue vaccine Dengvaxia®, flu vaccines, pediatric combinations and adult boosters.
  • Rare Diseases: With Genzyme, Sanofi plans to sustain its leadership by continuing its patient-centered approach.
  • Emerging Markets: Sanofi intends to retain its number one position through greater focus on priority countries.

Sanofi builds competitive positions in areas with strong growth potential:

  • Multiple Sclerosis: Sanofi has the ambition to double the size of its franchise between 2015 and 2020.
  • Oncology: Sanofi plans to restore a competitive pipeline, notably through its strategic collaboration in immuno-oncology.
  • Immunology: Sarilumab in rheumatoid arthritis and dupilumab in atopic dermatitis and asthma will be the two pillars of a new franchise.
  • Consumer Healthcare: Sanofi plans to build scale through new categories of products and bolt-on acquisitions (see box).

Sanofi explores strategic options in business segments that, despite their good performance, are not considered core to the strategy of the Company:

  • Animal Health : synergies that can be achieved with Sanofi's other activities remain limited (see box).
  • Generics in Europe: geographic synergies are limited and market complexity is increasing. On October 28th, 2016 Sanofi announced its decision to initiate a carve-out process in order to divest the EU Generics business within 12-24 months.
 

First step in portfolio reorganization

Sanofi and Boehringer Ingelheim confirmed on January 2nd, 2017 that the strategic transaction signed in June 2016, which consists of an exchange of Sanofi’s animal health business (Merial) and Boehringer Ingelheim’s consumer healthcare business, has been successfully closed in most markets on January 1st 2017. This closing marks the successful outcome of the business swap which started with exclusive negotiations in December 2015.

 

Deliver outstanding launches

Sanofi's growth will be notably driven by the launches that are scheduled for the next five years. Up to 18 new products are on track to arrive on the market by 2020. Among these, Sanofi projects that six key launches (Toujeo®, Praluent®, Dengvaxia®, sarilumab, SoliquaTM and dupilumab) could generate aggregate peak sales of €12bn to €14bn by 2025(1).

 

Sustain innovation in R&D

Sanofi will continue to strengthen its R&D pipeline, evolve its R&D model and increase research productivity.
The organization also fosters its existing R&D collaborations and increase its capacity for external innovation.

 

Simplify the organisation

Sanofi is in the process of simplifying its global organization. It moved to five Global Business Units (GBUs) in 2016 – Diabetes & Cardiovascular, General Medicines & Emerging Markets, Sanofi Genzyme (Specialty Care), Sanofi Pasteur (Vaccines), Merial (Animal Health). Following the exchange of Sanofi’s animal health business (Merial) with Boehringer Ingelheim’s consumer healthcare business, the five Global Business Units of Sanofi are: Diabetes & Cardiovascular, General Medicines & Emerging Markets, Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare.

In addition, Sanofi reshapes its plant network to match business evolution with increased emphasis on the growing biologics portfolio.

These initiatives as well as the prioritization of investments should allow cost savings of €1.5bn by 2018, which will be largely reinvested to support growth initiatives. In particular, Sanofi plans to increase its total annual R&D investments up to €6bn at constant exchange rates by 2020, while maintaining financial discipline.

(1) At constant exchange rates, non-risk adjusted sales projection through 2025.

 
 

© Sanofi 2004-2017 - All rights reserved - Update: January 04, 2017

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