Brandicourt sets out Sanofi’s long-term vision
pharmafile | November 6, 2015 | News story | Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | Sanofi, olivier brandicourt, pharma strategy
Sanofi has pledged to plough the money saved from its business restructure into R&D investment, to bring 18 new products to market over the next five years.
At an investors’ meeting in Paris chief executive Olivier Brandicourt told senior management and investors that he plans to ‘refocus and reshape’ the company, in order to deliver a sales growth rate of between 3 and 4% over 2015-2020. Brandicourt has set a further target of mid-single digit growth in the second half of this period.
As a result of investments in launches – including a collaboration with Lexicon Pharmaceuticals to develop an investigational diabetes drug, sotagliflozin – ‘headwinds in diabetes’ and cost savings, Sanofi says it does not expect to show any meaningful bottom line growth over 2016-2017. However, beginning in 2018, “Sanofi expects to grow business earnings per share faster than sales, reflecting its improved sales mix and the full capture of cost efficiencies.”
Sanofi has targeted multiple sclerosis, oncology and immunology as therapy areas where it will look to ‘build competitive positions’. But there are suggestions the firm may look to offload its generics division, after admitting it will explore its ‘strategic options’ for this part of the business in Europe, “where geographic synergies are limited and market complexity is increasing.”
Like rivals GSK, Sanofi plans to drive growth in the coming years by ramping up drug approvals, with a target of up to 18 new products arriving on the market by 2020. Among these, Sanofi projects that six key launches: Toujeo (insulin glargine), Praluent (alirocumab), Dengvaxia (dengue vaccine), sarilumab, LixiLan (lixisenatide and insulin glargine) and dupilumab, could generate sales of €12-€14 billion by 2025.
Brandicourt also set out his vision for Sanofi under its new business structure, announced in July. The move to five global business units will start to be implemented in January 2016, and Sanofi also plans to reshape its manufacturing network to prioritise its biologics portfolio.
Brandicourt told the meeting that streamlining the company worldwide and slimming down to a more focused portfolio should create cost savings of €1.5 billion by 2018, “which will be largely reinvested to support growth initiatives.” As a result, by 2020, Sanofi plans to increase its total annual R&D investments to €6 billion.
He told investors: “The pharmaceutical industry is undergoing a transformation unlike anything we’ve previously seen. Continued consolidation in the sector has created a more competitive environment over the last few years and, at the same time, science has never been more exciting. In this context, I am defining new priorities for Sanofi. The company will remain diversified, but with a portfolio refocused on areas where we can win, and innovation driven to improve lives of millions of people.
“Along with a more streamlined and accountable organisation, we are taking clear measures to ensure success as we launch a strong set of new medicines across several therapeutic areas. By building on the successes of these products, we are confident that Sanofi will be well-positioned for sustained, long-term growth. “
Lilian Anekwe
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