Sanofi's CEO Paul Hudson, at the helm barely 100 days, announced plans to exit diabetes and cardiovascular research and save €2 billion by reallocating resources in the next two years.
In his first strategy update since joining Paris-based Sanofi from Swiss pharma group Novartis AG in September, Hudson said the focus will turn to hematology, rare disease, neurology and cancer. Diabetes and cardiovascular research have historically been two of the French pharma group's most important therapeutic areas. Hudson intends to prioritize multiple sclerosis, breast cancer, a respiratory vaccine for respiratory syncytial virus, six potentially transformative late-stage experimental therapies for hemophilia and the oral medicine Venglustat for rare diseases including Gaucher and Fabry.
Hudson also announced a simplified corporate structure, with the company split into three business units: a stand-alone consumer business, "supported by us, cheerleaded by us"; a specialty care unit; and a general medicines unit, comprising established medicines and diabetes and cardiovascular products.
"We'll be out of diabetes and cardiovascular research — not easy for a company like ours with an incredibly proud history," Hudson said on a Dec. 9 conference call with reporters ahead of Sanofi's strategy day. "We recognize it's getting more difficult to get breakthrough innovation. We also recognize that we have to be efficient and move our resources to areas of opportunity — both unmet need and to grow our top line."
"So, as tough a choice as that is, we're making that choice," Hudson continued.
Sanofi exits diabetes, cardiovascular research as new CEO sets out his stall
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