2015: a new strategic roadmap to respond to market challenges
A number of fundamental trends point to a positive outlook for the pharmaceutical industry.
- The global population is growing and aging. Unmet medical needs remain high.
- The industry has increased R&D productivity, and has returned to consistently launching a high number of innovative medicines.
- Patients around the world, and a rising middle class in emerging markets, are demanding better care, empowered by access to new information.
- It is a particularly exciting time scientifically and technologically, with the promise of genomics being realized, immuno-oncology transforming cancer treatments, big data generating new insights into disease, and digital technologies helping to transform care delivery.
At the same time, funding challenges, budget tightening and affordability will continue to put the entire Healthcare value chain under significant pressure. Even though we believe that the pharmaceutical portion will remain a fundamentally attractive business, the bar for innovation will most likely continue to rise.
Innovation must have demonstrable benefit to the system. Payers will continue to put scrutiny on prices and reimbursement and will demand demonstration of real life outcomes, coupled with more innovative pricing and contracting practices.
Biosimilars are now firmly part of the competitive landscape in both the US and Europe. More focused competitors are building leadership positions in their priority therapy areas.
To compete and win in this market, we are implementing our 2020 strategic roadmap, announced in November 2015. We have made significant progress against each of the four pillars of that strategy in 2017: reshape the portfolio, deliver outstanding launches, sustain innovation in R&D, and simplify the organization.
Reshape the portfolio
To reshape the portfolio, we segmented our businesses focusing on three targets:
- Sustain our leadership in Diabetes and Cardiovascular Diseases, Vaccines, Rare Diseases and Emerging Markets
- Build competitive positions in Multiple Sclerosis, Oncology, Immunology and Consumer Healthcare
- Explore strategic options for Animal Health and European Generics: Sanofi fully exited the Animal Health business in 2017 and announced the implementation of a divestiture process of the Generics business in Europe (following completion of the dialogue with social partners).
Deliver outstanding launches
Sanofi’s second strategic priority is to deliver outstanding launches of new medicines and vaccines. We have focused the organization on six major product launches: Toujeo®, Praluent®, Dengvaxia®, Soliqua™ 100/33 / Suliqua™, Kevzara®, and Dupixent®.
Sustain innovation in Research & Development
Continued innovation in R&D is at the heart of Sanofi’s strategy. We are committed to responding to patients’ needs through the provision of adapted solutions which improve well-being and prolong life.
Sanofi has continuously adapted its R&D model in recent years to enhance its development excellence, which has had the effect of significantly improving the productivity of its portfolio.
Sanofi's portfolio has been rebalanced and reoriented towards biologics, especially through our collaboration with Regeneron for monoclonal antibodies. At the same time, our teams have worked internally to develop our own proprietary platforms, such as multi-specific antibodies which will allow the design of drugs with a mechanism of action making it possible to reach several targets at once.
Simplify the organization
- Establishing a more agile organization through a cost reduction program
- Uniting the different parts of the company behind a single vision, a common set of values and a shared culture