Sanofi Sets Out Strategic Roadmap for Long-term Growth
(Thomson Reuters ONE) -
Sanofi Sets Out Strategic Roadmap for Long-term Growth
* Sales CAGR(1) between +3% and +4% at CER over 2015-2020
* Six major launches expected to generate aggregate peak sales of ?12 bn to
?14 bn(2)
* Business EPS(3) at CER expected to grow faster than sales beginning in 2018
* Targeting cost savings of ?1.5 bn to be largely reinvested for growth
* Increase annual R&D investments up to ?6 bn at CER by 2020
* Explore strategic options for Merial, European generics business
* Strong balance sheet and capital allocation to enhance growth and support
progressive dividend
Paris, France - November 6, 2015 - Sanofi will host an Investor Relations
seminar today ('Meet Sanofi Management') at which it will set out its strategic
roadmap for the period 2015-2020 and its ambition to become the pre-eminent
diversified global healthcare company. Through a process of refocusing and
reshaping the organisation and investing in key launches and businesses, Sanofi
expects to deliver a sales compound annual growth rate (CAGR) of between +3% and
+4%(4) over 2015-2020, with a target of mid-single digit growth(4) in the second
half of this period. Sanofi will provide today average expected sales trends for
each Global Business Unit (GBU) which support the overall expected Group sales
performance over 2015-2020. As a result of investments in launches, headwinds in
diabetes and the phasing of cost savings, Sanofi does not expect to show any
meaningful bottom line growth over 2016-2017. Beginning in 2018, however Sanofi
expects to grow Business EPS faster than sales, reflecting its improved sales
mix and the full capture of cost efficiencies.
"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," said Olivier Brandicourt, M.D., Chief Executive Officer, Sanofi. "Along
with a more streamlined and accountable organization, 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. Sanofi is also seeking external opportunities to enhance its growth
profile."
Sanofi's long term strategy rests on four pillars: reshape the portfolio,
deliver outstanding launches, sustain innovation in R&D and simplify the
organization.
Reshape the portfolio
Sanofi's diversified portfolio will be reshaped in three different ways:
Sustain leadership
The company will sustain its leadership in diabetes and cardiovascular,
vaccines, rare diseases and emerging markets. In diabetes, Sanofi plans to
develop its insulin franchise, which includes Lantus(®), Toujeo(®) and LixiLan,
strengthen its pipeline through external opportunities (e.g. in-licensing
agreements with Lexicon and Hanmi(5)) and lead the market shift to managing
diabetes outcomes. The collaboration with Google Life Sciences is a good example
of the latter.
In the cardiovascular space, Sanofi is excited about the prospects for
Praluent(®) and eagerly awaits the results of the ODYSSEY cardiovascular
outcomes trial in 2016-2017 which should help to capture the drug's full
potential.
In the vaccines field, the objective is to grow faster than the market through
the company's Dengvaxia(®), flu, pediatric and boosters vaccines.
Lastly, in emerging markets, the company intends to retain its number one
position through greater focus on priority countries. In those regions, resource
allocation will be prioritized, the industrial footprint will be adapted and
dedicated innovations will be specifically developed.
Build competitive positions
Sanofi will build competitive positions in multiple sclerosis, oncology,
immunology and consumer healthcare. In oncology, Sanofi plans to rebuild a
competitive position by regaining critical mass. In order to achieve this goal,
the company intends to maximize clinical assets like isatuximab in multiple
myeloma, and restore a competitive pipeline through its strategic collaboration
with Regeneron in immuno-oncology. In immunology, sarilumab in rheumatoid
arthritis and dupilumab in atopic dermatitis and asthma will be the two pillars
of a new franchise. In consumer healthcare, Sanofi plans to build scale through
new categories of products and bolt-on acquisitions.
Explore strategic options
Sanofi will explore strategic options for its animal health and European
generics businesses. In animal health, Merial has successfully returned to
strong growth over the past six quarters and is currently one of the most
profitable companies in its sector. Nevertheless synergies are limited with
other Sanofi businesses. Strategic options will also be explored for generics in
Europe where geographic synergies are limited and market complexity is
increasing. All options will be considered for these businesses including
retention in the Group.
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, LixiLan and dupilumab) could generate
aggregate peak sales of ?12 bn to ?14 bn by 2025(2).
Sustain innovation in R&D
Sanofi announced plans to continue to strengthen its R&D pipeline and evolve its
R&D model based on project teams and alignment with its GBUs. The organization
will also foster its existing R&D collaborations and increase its capacity for
external innovation. At the meeting today, President of Global R&D Elias
Zerhouni will provide an update on the next wave of promising pipeline assets.
Simplify the organization
As announced in July, Sanofi is in the process of simplifying its global
organization. The move to five GBUs will start to be implemented beginning in
January 2016 following mandatory labor consultations. In addition, Sanofi plans
to reshape its plant network to match business evolution with increased emphasis
on the growing biologics portfolio.
Simplification of the organization worldwide and a more focused portfolio should
allow cost savings of ?1.5 bn by 2018, which will be largely reinvested to
support growth initiatives. With the benefit of these cost savings, the Group
gross margin and SG&A ratio to sales in 2018 are each expected to be similar to
their respective 2015 levels at CER. Reflecting the company's ambition to drive
long term growth, the R&D ratio to sales is expected to rise slightly over the
period 2015-2020 at CER. By 2020, Sanofi plans to increase its total annual R&D
investments up to ?6 bn at CER while maintaining financial discipline.
Capital allocation
At the meeting today, Chief Financial Officer Jérôme Contamine will outline
Sanofi's priorities for capital allocation, which include organic capital
expenditures in the business, business development (including M&A), maintaining
progressive growth in the dividend, and opportunistic share buybacks. The
company has a strong balance sheet with healthy free cash flow, low leverage and
a low cost of borrowings. To supplement the organic growth prospects which will
be discussed today, Sanofi intends to seek opportunities for external growth
while maintaining the financial discipline and rigour to which it remains fully
committed.
The Meet Sanofi Management: 2015-2020 Roadmap IR seminar will be held today,
Friday November 6, 2015 at its Headquarters in Paris. It will begin at 8.30 am
CET concluding at 3.45 pm CET.
A live webcast of the plenary session of the seminar will be available online
from 8:30 to 10:00 am CET on sanofi.com
About Sanofi
Sanofi, a global healthcare leader, discovers, develops and distributes
therapeutic solutions focused on patients' needs. Sanofi has core strengths in
diabetes solutions, human vaccines, innovative drugs, consumer healthcare,
emerging markets, animal health and Genzyme. Sanofi is listed in Paris
(EURONEXT: SAN) and in New York (NYSE: SNY).
Definition of business net income
In order to facilitate an understanding of operational performance, Sanofi
comments on the business net income statement. Business net income is a non-GAAP
financial measure. Business net income is defined as net income attributable to
equity holders of Sanofi excluding:
* amortization of intangible assets,
* impairment of intangible assets,
* fair value remeasurement of contingent consideration liabilities related to
business combinations,
* other impacts associated with acquisitions (including impacts of
acquisitions on associates),
* restructuring costs,
* other gains and losses (including gains and losses on disposals of non-
current assets),
* costs or provisions associated with litigation,
* tax effects related to the items listed above as well as effects of major
tax disputes.
* tax (3%) on dividends paid to Sanofi shareholders.
We also report "business earnings per share" ("business EPS"), a non-GAAP
financial measure that we define as business net income divided by the weighted
average number of shares outstanding.
1. Compound annual growth rate (CAGR)
2. At CER, non-risk adjusted sales projection through 2025
3. See below for definitions of business net income and business operating
income
4. Growth rates are expresset at CER
5. The agreement is subject to customary closing conditions including review
under the Hart-Scott-Rodino Antitrust Improvements Act.
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, 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" 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 absence of
guarantee that the product candidates if approved will be commercially
successful, the future approval and commercial success of therapeutic
alternatives, the Group's ability to benefit from external growth opportunities,
trends in exchange rates and prevailing interest rates, the impact of cost
containment initiatives and subsequent changes thereto, the average number of
shares outstanding as well as those 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, 2014.
Other than as required by applicable law, Sanofi does not undertake any
obligation to update or revise any forward-looking information or statements.
Contacts:
Media Relations Investor Relations
Laurence Bollack Sébastien Martel
Tel. : +33 (0)1 53 77 46 46 Tel.: +33 (0)1 53 77 45 45
mr(at)sanofi.com ir(at)sanofi.com
Press release (PDF):
http://hugin.info/152918/R/1964823/717224.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Sanofi via GlobeNewswire
[HUG#1964823]
Unternehmensinformation / Kurzprofil:
Datum: 06.11.2015 - 07:01 Uhr
Sprache: Deutsch
News-ID 432491
Anzahl Zeichen: 15229
contact information:
Town:
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Kategorie:
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