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Investors - Ensuring sustainable growth
Investors - Ensuring sustainable growth

Investors

Ensuring sustainable growth

 

Strategy

On November 6, 2015, Sanofi presented its strategic roadmap for the period 2015-2020.
We have made real progress against each of the four pillars of that strategy in 2016:

 

 

 

Reshape the portfolio

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

  • Diabetes: Sanofi remains committed to fighting the global epidemic of diabetes and to treating cardiovascular disease, the leading cause of death globally. Our three priorities over the next few years are to develop the insulin franchise, strengthen our pipeline and lead the market shift to managing diabetes outcomes.
  • Cardiovascular: Sanofi has the opportunity to transform the management of hypercholesterolemia through Praluent®, developed jointly with Regeneron. In a challenging payer environment, Sanofi continues to work on securing access for patients to this important medication.
  • Vaccines: Sanofi’s growth will be driven by leading products in flu, pediatric combinations, and the launch of Dengvaxia®. To pursue their own distinct growth strategies, Sanofi Pasteur and MSD mutually agreed to end their joint vaccines operations in Europe.
  • Rare Diseases: we continue to sustain our market share leadership in rare genetic diseases through the patient centered approach unique to Sanofi Genzyme, product differentiation, and market access.
  • Emerging Markets: we are the pharmaceutical industry leader in emerging markets and a major multinational player in countries such as Brazil, Russia, India, China and Mexico.

Sanofi builds competitive positions in areas with strong growth potential:

  • Multiple Sclerosis: Sanofi already has a competitive position in multiple sclerosis, reaching €1.7 billion sales in 2016, but will continue to maximize its support to these products through life cycle management in a competitive market and intends to strengthen its portfolio.
  • Oncology: Sanofi is rebuilding a competitive pipeline, notably through its strategic collaboration in immuno-oncology.
  • Immunology: Sanofi has the cornerstones of an important new franchise in immunology through sarilumab (Kevzara™) for rheumatoid arthritis and Dupixent™ in several indications including atopic dermatitis, asthma and nasal polyposis.
  • Consumer Healthcare: on January 1, 2017, Sanofi and Boehringer Ingelheim successfully closed in most markets a transaction to swap Sanofi’s animal health and BI’s CHC businesses. With this transaction, Sanofi becomes a leader in consumer healthcare.

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

  • Animal Health: we have exited the animal health business through the swap with BI.
  • Generics in Europe: as announced in our 2020 strategic roadmap, we carefully reviewed all options for our European Generics business in 2016. In October 2016, we announced that we would initiate a carve-out process in order to divest this business.
 

Deliver outstanding launches

Sanofi's second strategic priority is to deliver outstanding launches of new medicines and vaccines. Sanofi has focused the organization on six major product launches: Toujeo®, Praluent®, Dengvaxia®, Soliqua™ 100/33, Kevzara®, and Dupixent®.

 

Sustain innovation in R&D

Our strategy depends on continued innovation in R&D. We continue to strengthen our R&D pipeline, increasing the number of high-quality projects in the early stage pipeline and replenishing the late development pipeline as products launch. Having delivered real improvements in development productivity, we are now particularly focused on improving research productivity.

In 2016, we aligned the R&D organization with the new Global Business Unit structure; reorganized Research into thematic clusters; continued to build capability in translational science; and recruited important new talent. We have a number of anchor collaborations in R&D. Fostering these collaborations is an important part of our R&D strategy.

Our R&D investments will follow our business priorities, focusing on those businesses where we aim to sustain leadership and build competitive positions. We expect to increase our R&D investments to €6 billion annually by 2020.

 

Simplify the organisation

Our final strategic priority is to drive focus and simplification within our organization. In 2016, we implemented a new organizational structure, to enable us to be more closely aligned with our strategy and more effective in our execution across R&D and commercial, from global to country level. Specifically, we have created five Global Business Units integrating global franchises and country-level commercial and medical organizations for each of our major businesses: Diabetes & Cardiovascular, General Medicines & Emerging Markets, Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare. In addition, Sanofi reshaped its plant network to match business evolution with increased emphasis on the growing biologics portfolio.

One of the outcomes of simplification will be a reduction in costs. To balance the need for increased resources and to partly offset lower diabetes sales expectations, we are committed to deliver at least €1.5 billion in cost savings. The savings, which we are on track to deliver, will largely be reinvested in the business.

The third element of the simplification program is to unite the different parts of the Company behind a single vision, a common set of values, and a shared culture.