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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 Dr Olivier Brandicourt, CEO, 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:
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) 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.