Press Release: Sanofi Enters Next Chapter of Play to Win Strategy
Sanofi Enters Next Chapter of Play to Win Strategy
- Increases
investments in its pipeline to fully realize long-term growth
potential, bolstered by successful launches and R&D
progress.
- Launches
strategic cost initiatives, with most of the savings to be
reallocated to fund innovation and growth drivers.
- Announces
intention to separate the Consumer Healthcare Business at the
earliest in Q4 2024 via the creation of a publicly listed entity
headquartered in France.
- Reiterates
capital allocation policy and 2023 Business EPS growth target, and
provides preliminary 2024 and 2025 outlook.
Paris, October 27, 2023. Sanofi
today provided a comprehensive update regarding its Play to Win
strategy. This strategy continues to focus on the critical goals of
executing transformative medicine and vaccines launches, driving
agile and efficient resource deployment and enhancing R&D
productivity. To that end, Sanofi announced plans to increase its
R&D investments to fully realize its pipeline potential, drive
long-term growth and enhance shareholder value. The Company also
announced its intention to separate its Consumer Healthcare
Business enabling greater management focus and resource allocation
to the needs of the Biopharma business, where value-creating
opportunities and longer-term operational levers have been
identified to support the accelerated R&D investments. Sanofi
reiterates its financial guidance for 2023 and provides a
preliminary outlook for 2024 and 2025 that reflects this new
chapter of its strategy.
Paul HudsonChief Executive
Officer, Sanofi “We have made tremendous progress on our Play to
Win strategy by bringing new and transformative products to market
and building an industry-leading immunology pipeline, evidenced by
our recent, strong flow of positive R&D data readouts. In this
new chapter of our strategy, we are deepening our investment in
R&D, taking steps toward becoming a pure play biopharma
company, and further optimizing our cost structure. This will help
us accelerate innovation and strengthen our growth drivers, while
ensuring long-term profitability and enhancing shareholder value.
We are excited to build on the success of our strategy and
confident in the long-term value our investments will generate for
all Sanofi stakeholders.”
Play to Win Achievements Since 2019Sanofi’s
multi-year Play to Win strategy, which focused on growth,
innovation, and efficiency, has positioned Sanofi for long-term
success and achieved significant progress since 2019,
including:
- Achieving 13
consecutive quarters of growth
- Successfully
scaling Dupixent® to be among the world’s leading medicines with Q3
2023 annualized sales nearing €11 billion
- Building a
high-growth Vaccines business, which delivered mid- to high-single
digit sales growth since 2018, with at least five new programs
expected to enter Phase 3 by 2025
- Successfully
launching six new molecular entities in the last two years
(Xenpozyme®, Nexviazyme®, Enjaymo®, ALTUVIIIO®, TZIELD® and
Beyfortus®)
- Developing an
industry-leading immunology and strong neuro-inflammation pipeline,
with currently 7 assets in mid- to late-stage development, each
with a peak sales potential of at least €2 to €5 billion
(itepekimab, tolebrutinib, amlitelimab, frexalimab, rilzabrutinib,
SAR443765 (IL13/TSLP), SAR441566 (oral TNFi))
- Executing a €2.7
billion cost savings plan to reinvest in the Company’s growth
drivers
- Investing in
over 25 value-creating business development and M&A deals to
further strengthen Sanofi’s pipeline
- Streamlining
Consumer Healthcare product portfolio to focus on priority
brands
- Significantly improving BOI4 and
free cash flow
Strengthening the Pipeline through Increased
R&D InvestmentSanofi’s strategic mission is to transform the
practice of medicine through breakthrough science that improves
people’s lives. To that end, the Company is accelerating its
R&D investments to deliver high-value innovation.
These further investments will strengthen and
sustain the Company’s long-term trajectory of profitable growth by
fueling existing or new clinical development.
As previously announced, Sanofi will host an
R&D Day for investors in New York City on December 7, 2023,
where the Company will provide further insights into its pipeline
and new growth avenues. The meeting will include presentations from
Sanofi’s new Head of R&D, Houman Ashrafian, as well as key
members from the research and development teams.
Houman AshrafianHead of
Research and Development, Sanofi “This is an exciting and important
moment for Sanofi’s R&D journey, as we double down on our
investments from a position of strength in order to unlock our
pipeline’s full potential. Our investments will follow Sanofi’s
strategy of transforming medicine through breakthrough science,
enabling greater access to medicines and vaccines that benefit the
patients and communities we serve. We are committed to investing in
innovation with discipline, and we will reallocate resources,
further prioritizing first and or best in class medicines to help
fund our future growth. We look forward to discussing our plan
further with investors at our upcoming R&D Day, where we will
dig deeper into the compelling science underpinning this
opportunity.”
Strategic Cost InitiativesSanofi is announcing
new steps to further its ongoing effort to improve its cost
structure, launching efficiency initiatives across the Biopharma
business that will free operational resources to support the
accelerated R&D investments and unlock value-creation
opportunities. This will include prioritizing its investments in
R&D and modernizing its approach to commercial delivery. Sanofi
is targeting savings of a total of up to €2 billion from 2024 to
the end of 2025, of which most will be reallocated to fund
innovation and growth drivers.
Intention to Separate the Consumer Healthcare
BusinessFollowing the announcement in December 2019 of the creation
of a standalone Global Business Unit, Sanofi’s Consumer Healthcare
(“CHC”) has grown into a leading consumer healthcare platform with
a presence in 150 countries and over 11,000 employees, dedicated
resources in R&D, manufacturing, information technology as well
as its distinct sustainability roadmap.
Sanofi announces its intention to separate the
CHC Business as it increases its focus on innovative medicines and
vaccines. The intended separation will seek to create two entities,
each better equipped to pursue its own business strategy,
resourcing and capital allocation and enabling each to focus on
long-term growth in its respective markets. Sanofi believes that
the separation will unlock further opportunities for CHC to
leverage its portfolio of leading brands and continue to drive
growth and shareholder value.
Julie van OngevalleExecutive
Vice President, Consumer Healthcare Sanofi “We have achieved
significant milestones at Sanofi Consumer Healthcare since we
embarked on our journey to become a standalone Global Business Unit
within Sanofi. We have adapted our business to the evolving needs
of the Consumer Healthcare sector, offered a streamlined yet
diverse brand portfolio of science-based products and solutions and
achieved the B Corp accreditation as the first large consumer
healthcare business in North America. The CHC teams and I look
forward to becoming a standalone global leader in the attractive
and growing consumer health market, with increased agility and
flexibility to grow our portfolio of brands and further address our
customers’ needs across categories.”
Sanofi is reviewing potential separation
scenarios, but believes that the most likely path would be through
a capital markets transaction, by creating a listed entity
headquartered in France. The timing is driven by the desire to
maximize value creation and reward Sanofi shareholders. Subject to
market conditions, the separation could be achieved at the earliest
in Q4 2024, following consultation with social partners. Further
details will be provided at a later date.
2023 Guidance and Preliminary 2024 and 2025
Outlook1Sanofi reiterates its 2023 guidance of mid-single digit2
Business EPS3 growth at constant exchange rates.
As a result of changes to global tax
regulations, Sanofi’s effective tax rate is expected to increase
from 19% in 2023 to 21% in 2024. Due to the increased R&D
investment, Sanofi expects 2024 Business EPS to remain roughly
stable to 2023 levels excluding the impact of the expected tax rate
change, and therefore decline low-single digits including the
higher expected tax rate.
In 2025, Sanofi expects a strong rebound in
business EPS growth, driven by continued sales growth supported by
its leading franchises, the full benefit from planned efficiency
initiatives, and its expectation of relatively stable R&D
expenses year on year.
Given Sanofi’s decision to support the full
realization of its pipeline’s long-term potential, its continued
investment around the new launches, as well as pricing headwinds in
General Medicines, the Company will no longer target a 32% BOI4
margin for 2025 while maintaining a focus on long-term
profitability.
The company reiterates its goal to generate over
€22 billion in sales in immunology, and over €10 billion in sales
in vaccines by 20301.
Capital Allocation ReaffirmedThe Company’s
capital allocation policy remains unchanged. Sanofi expects to
maintain a gradually growing dividend, consistent with its
historical dividend policy.
Q3 2023 Earnings Call & Upcoming R&D Day
InformationThird quarter 2023 results and the announcements above
will be discussed by management during a conference call with the
financial community today. The presentation will be followed by a
Q&A session. The link to the audio webcast and the
corresponding presentation can be found on the Investors Relations
section of Sanofi corporate website: www.sanofi.com/investors. A
replay will be available shortly after the live webcast.Sanofi will
host an R&D Day for investors and analysts in New York City on
December 7, 2023. A live webcast will be available for those unable
to attend in person. Event registration details will be
forthcoming.About SanofiWe are an innovative global healthcare
company, driven by one purpose: we chase the miracles of science to
improve people’s lives. Our team, across some 100 countries, is
dedicated to transforming the practice of medicine by working to
turn the impossible into the possible. We provide potentially
life-changing treatment options and life-saving vaccine protection
to millions of people globally, while putting sustainability and
social responsibility at the center of our ambitions. Sanofi is
listed on EURONEXT: SAN and NASDAQ: SNY
Sanofi Media Relations
Sandrine Guendoul | +
33 6 25 09 14 25 | sandrine.guendoul@sanofi.comSally
Bain | + 1 617 834 6026
| sally.bain@sanofi.comEvan Berland | +1 215
432 0234 | evan.berland@sanofi.comNicolas
Obrist | + 33 6 77 21 27 55
| nicolas.obrist@sanofi.comVictor
Rouault | + 33 6 70 93 71 40
| victor.rouault@sanofi.com
Sanofi Investor RelationsEva Schaefer-Jansen |
+ 33 7 86 80 56 39 | eva.schaefer-jansen@sanofi.comArnaud
Delépine | + 33 06 73 69 36 93 |
arnaud.delepine@sanofi.comCorentine Driancourt | +
33 06 40 56 92 | corentine.driancourt@sanofi.comFelix
Lauscher | + 1 908 612 7239 |
felix.lauscher@sanofi.comTarik Elgoutni | + 1 617
710 3587 | tarik.elgoutni@sanofi.comNathalie Pham
| + 33 07 85 93 30 17 | nathalie.pham@sanofi.com
Sanofi Forward-Looking Statements
This press release contains forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995, as amended. Forward-looking statements are statements
that are not historical facts. These statements include projections
and estimates and their underlying assumptions, statements
regarding plans, business transformations, objectives, intentions
and expectations with respect to future financial results, events,
operations, services, product development and potential, and
statements regarding future performance. Forward-looking statements
are generally identified by the words “expects”, “anticipates”,
“believes”, “intends”, “estimates”, “plans”, “potential”,
“outlook”, “guidance” and similar expressions. Although Sanofi’s
management believes that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned
that forward-looking information and statements are subject to
various risks and uncertainties, many of which are difficult to
predict and generally beyond the control of Sanofi, that could
cause actual results and developments to differ materially from
those expressed in, or implied or projected by, the forward-looking
information and statements. These risks and uncertainties include
among other things, the uncertainties inherent in research and
development, future clinical data and analysis, including post
marketing, decisions by regulatory authorities, such as the FDA or
the EMA, regarding whether and when to approve any drug, device or
biological application that may be filed for any such product
candidates as well as their decisions regarding labelling and other
matters that could affect the availability or commercial potential
of such product candidates, the fact that product candidates if
approved may not be commercially successful, the future approval
and commercial success of therapeutic alternatives, Sanofi’s
ability to benefit from external growth opportunities, to complete
capital markets or other transactions and/or obtain regulatory
clearances, risks associated with developing standalone businesses,
risks associated with intellectual property and any related pending
or future litigation and the ultimate outcome of such litigation,
trends in exchange rates and prevailing interest rates, volatile
economic and capital market conditions, cost containment
initiatives and subsequent changes thereto, and the impact that
pandemics, political disruption or armed conflicts or other global
crises may have on us, our customers, suppliers, vendors, and other
business partners, and the financial condition of any one of them,
as well as on our employees and on the global economy as a whole.
The risks and uncertainties also include the uncertainties
discussed or identified in the public filings with the SEC and the
AMF made by Sanofi, including those listed under “Risk Factors” and
“Cautionary Statement Regarding Forward-Looking Statements” in
Sanofi’s annual report on Form 20-F for the year ended December 31,
2022. Other than as required by applicable law, Sanofi does not
undertake any obligation to update or revise any forward-looking
information or statements.
1 2024 and 2025 outlook excludes unforeseen major adverse events
and assumes constant exchange rates.2 2022 business EPS was €8.26.3
In order to facilitate an understanding of operational performance,
Sanofi comments on the business net income statement. Business net
income is a non-IFRS financial measure (definition in Appendix 7 of
the Q3 press release dated October 27, 2023). The consolidated
income statement for Q3 2023 is provided in Appendix 3 of the Q3
press release dated October 27, 2023 and a reconciliation of
reported IFRS net income to business net income is set forth in
Appendix 4 of the Q3 press release dated October 27, 20234 See Q3
press releases Appendix 7 for definitions of financial
indicators
Grafico Azioni Sanofi (BIT:1SAN)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Sanofi (BIT:1SAN)
Storico
Da Mag 2023 a Mag 2024