Now is February 2018, CEO Olivier Brandicourt can lead Sanofi to reverse the situation, the answer should be announced after the official launch of the 2017 annual report.
Reuters news on February 5, Brazil EMS and India Torrent Pharma bid for Sanofi European generics last two pharmaceutical companies .Indian Economic Times has reported that there are four Indian pharmaceutical companies and a Chinese medicine The company wants to buy Sanofi's European generics business.
Reuters sources said the bid has increased from the initial 2.1 billion US dollars to 2.4 billion US dollars.Sanofi expects to finalize the final buyers before the end of the first quarter of 2018, and now the remaining two pharmaceutical companies and four consortium funds Enter the next round, so the final transaction price may also continue to improve .At present all parties declined to comment.
Sanofi's overall performance in 2017 was flat, with sales up 5.7% to $ 43bn. The performance boost plan, which began in late 2015, opens the door to success or failure this year.
Performance pressure urgent turn around
In the fourth quarter of 2017, Sanofi's U.S. diabetes sales decreased by 29.5%, down 22.8% for the full year of 2017 and annual sales dropped to $ 3.84 billion. Fortunately, Sanofi's specialty drug business was awarded in 2017 Annual growth remained strong, up 15.2% to 6.97 billion U.S. dollars.
In the context of increased pay-side controls by drug payers in the United States, PBM exerted its power through prescription packs, while Sanofi's core diabetes products came in the same way that Toujeo was kicked in by two large PBM companies in the United States in 2017 Outcomes set, thus Sanofi 2017 results hit hard.
Market challenges in the diabetes arena are not new to Sanofi, the No. 1 drug maker in France, the world's fifth-largest prescription drug salespeople, has been trying to reshape itself, with cuts in spending and mergers and acquisitions in response to tougher Payment request.
As early as Olivier Brandicourt was appointed as the new CEO, he was released to the outside world to regain the business development signal .In November 2015, Sanofi announced $ 1.6 billion cost reduction plan and animal protection and The signal from the European generics business is that the goal is to reverse the situation and boost performance.
At that time, diversification was considered to be the core of Sanofi's strategy for the next five years, but Brandicourt was only interested in diversifying in the area where Sanofi could win. "If we want to win, we must focus on ourselves Able to establish a strong market competitiveness of the business.
Brandicourt believes Sanofi will become the leader by investing heavily in four of its own leading fields of diabetes and cardiovascular, vaccines, rare diseases and emerging markets after the two activities of animal health and generics While in the four sub-areas of multiple sclerosis, cancer, immune tumors and consumer self-care, Brandicourt said that while each business is underutilized, Sanofi will take steps to create its market position, such as' Large-scale mergers and acquisitions, in the field of self-care products to build business scale.
Sanofi first focus on the sale of animal health insurance business with the German Boehringer Ingelheim reached 20 billion US dollars 'exchange transactions', Sanofi get each other's consumer health products business now turn To the European generic business.
Sanofi's European generics business covers a total of 50 countries, especially in the Eastern European market area, the product line covers the four areas of cardiovascular, gastrointestinal, analgesic and anti-infective sold the European generics business, you can let the game Nuofi to increase the pockets of forage, especially in the case of continuous pressure on the diabetes business can bring cash flow.
Buy a second jazzy?
Sanofi lost to Pfizer and Johnson & Johnson both in the merger of Medivation and Actocum, and the two failed deals sparked investor dissatisfaction, causing Sanofi's shares to fall more than the 12-month low of the year. Sanofi announced two major mergers and acquisitions in the first two months of 2018.
On January 23, Sanofi announced that it will spin off Bioverativ, a US-based hemophilia drug company, for $ 11.6 billion, and was spun off by Bio-Adidas Corp. On January 30, Sanofi announced a $ 4.8 billion Ablynx, a biotech company in the same disease area in Belgium, won $ 11.6 billion for Bioverativ, the largest deal since buying Genzyme in 2011.
Sanofi is being questioned by analysts for Bioverativ's $ 105 bid per share, especially when the competition for gene therapy is mounting in the field of haemophilia. However, there is also an analysis when Sanofi buys a jazzy The division feels expensive, but it turns out that Sanofi has bought himself an 'engine.'
Buying Bioverativ will enrich Sanofi's Rare Diseases business and will benefit from a portfolio of Hemophilia treatment products and a suite of products under development for the treatment of other rare hematologic diseases. Sanofi's own research in the treatment of RNAi hemophilia The drug fitusiran will also benefit Bioverativ's two hemophilia products received a total of $ 847 million in sales revenue in 2017, the figure is expected to become $ 1.37 billion in 2018. Sanofi said Bioverativ bring Revenue can be seen from 2018 and will bring 5% growth by 2019.
And about a $ 1.6 billion cost-cutting plan by 2018, Brandicourt said at the same time: 'We can not afford to waste a penny in the current environment, and we have to simplify the organization and two-thirds of the cost savings come from here.' ' At the time the French trade unions were called out, the manufacturing costs had to be reduced and part of the simplification of the organizational structure came from the reshaping of the production network.Sanofi had announced several rounds of layoffs totaling nearly a thousand people since 2016. In February 2016, Sanofi canceled 500 jobs in France, and again in December announced plans to cut 20% of sales of the American Diabetes Unit sales force, equivalent to hundreds of positions.
According to the 2015 plan, Sanofi will achieve faster revenue growth starting in 2018. However, the plan was not favored by investors at the time, and Sanofi's stock price on the Paris Stock Exchange was released after the news Straight down 6%.
Now is February 2018, Olivier Brandicourt can lead Sanofi to reverse the situation, the answer should be announced after the annual report in 2017.
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