PARIS, FRANCE - Sanofi, a global pharmaceutical giant, has unveiled a comprehensive update to its "Play to Win" strategy, highlighting a renewed focus on research and development (R&D) investments, a separation of its Consumer Healthcare Business, and ongoing cost-saving initiatives. These strategic moves aim to accelerate innovation and long-term growth while enhancing shareholder value.
Under the leadership of CEO Paul Hudson, Sanofi has made significant progress since launching its Play to Win strategy in 2019, including 13 consecutive quarters of growth, the success of Dupixent with sales nearing €11 billion, and robust growth in its Vaccines business. The company also launched several new products and developed an impressive pipeline in immunology and neuro-inflammation.
In this new phase, Sanofi plans to boost its R&D investments to fully realize the potential of its pipeline, focusing on transformative medicines and vaccines. These investments are intended to fuel existing and new clinical developments and promote innovation. Sanofi will provide more insights into its pipeline and growth avenues during an R&D Day for investors in December 2023, featuring presentations from its new Head of R&D, Houman Ashrafian.
Houman Ashrafian, Head of R&D at Sanofi, emphasized the importance of doubling down on investments to unlock the pipeline's full potential and advance medicine through breakthrough science, ultimately benefiting patients and communities.
Sanofi is also taking strategic cost-saving measures across its Biopharma business, aiming to save up to €2 billion by the end of 2025. These savings will be reallocated to fund innovation and growth drivers.
Furthermore, the company has announced its intention to separate the Consumer Healthcare Business to enhance focus on innovative medicines and vaccines. Sanofi believes this separation will create two entities, each better equipped to pursue its unique business strategy, resource allocation, and capital allocation. This move will allow both entities to focus on long-term growth in their respective markets. Sanofi intends to pursue this separation through a capital markets transaction, likely creating a listed entity headquartered in France. The earliest possible timeframe for this separation is Q4 2024, subject to market conditions and consultation with social partners.
Julie van Ongevalle, Executive Vice President of Consumer Healthcare at Sanofi, highlighted the significant achievements of the Consumer Healthcare unit and expressed eagerness to become a standalone global leader in the consumer health market, equipped with greater agility and flexibility to grow its portfolio of brands.
Sanofi's updated strategy underscores its commitment to advancing healthcare through innovation, cost efficiency, and strategic realignment, setting the stage for future growth and value creation. Shareholders and investors are keen to see how these initiatives will unfold and drive the company's future success.
