To be continued today… Sanofi
(AOF) – Sanofi has made an additional multi-year capital commitment to its evergreen investment fund, Sanofi Ventures, which will bring the fund’s capitalization to more than $750 million. Sanofi Ventures will continue to act as a financial partner with early and mid-stage portfolio companies and will also support Sanofi’s future business development and M&A transactions. This capital increase, approved by the executive committee, will also strengthen the fund’s investor team.
In 2022, Sanofi Ventures closed 10 investment transactions in companies specializing in therapeutic and digital areas of strategic interest to Sanofi. Since the foundation of the fund, 80% of its investments have been focused on biopharmaceutical companies and 20% on companies specializing in digital health.
“This injection of capital demonstrates Sanofi’s commitment to the venture capital community and its desire to develop partnerships with innovative companies around the world in the interests of patients,” said Sanofi CEO Paul Hudson.
AOF – DETAILS
Key points
– The 5th world pharmaceutical group established in 1994, the first in Europe, and the 1st in the world for vaccines;
– 37.8 billion euros of balanced sales from 4 divisions: 34% general medicine, 35% specialty medicine (immunology, neurology and oncology), 20% vaccines and consumer health;
– The increase in the share of developing countries (34% of sales) lags behind the USA (38%) and Europe (28%);
– Business model in 4 points: simplified organization, restructured portfolio containing more organic products, transformed research and development and strong ambitions in terms of profitability and financial strength;
– Split capital (excluding L’Oréal: 9.48% of shares and 16.95% of voting rights), Serge Weinberg, chairman of the board of directors consisting of 16 people, CEO Paul Hudson;
– A healthy balance sheet at the end of June with net debt of 12.2 billion euros and free cash flow of 3.2 billion euros.
Challenges
– 2020-2025 “Play to Win” plan is aimed at creating a flexible group and world number 2:
– 2020/22: operating margin 30%, €2.5 billion in cost savings,
– 2023/25: 1/3 reduction of product families, R&D and digital productivity in factories and 32% operating margin;
– Innovation strategy:
– 5 research areas: immunology and inflammation, oncology, neurology (especially sclerosis), rare hematological diseases and rare diseases, vaccines,
– 91 ongoing projects, including 29 in the 3rd and 5th stages awaiting approval by the competent authorities,
– developed in collaboration – Kymera for immunology, Translate Bio in RNA for vaccines – or with acquisitions – Kiadis, Biopharma, Kymab for Oncology,
– supported by technological platforms: small molecules, antibodies, hemogenetic proteins, genomics;
– Planet Mobilization environmental strategy aiming for carbon neutrality by 2050,
– 2030: 55% reduction of CO2 emissions for scopes 1 and 2 and 30% for scope 3,
– 2027: abolition of plastic packaging for vaccines,
– 2025: eco-design of all new products;£
– 2022: Launch of Impact, unprofitable medicines in 40 poor countries,
– issues of credit lines indexed to sustainable development;
– Effects of 5 “priority” drugs: Amcenestrant (breast cancer), Fitusiran (RNA for hemophilia), Efanesoctocog (hemophilia), Nirsevimab and Nisevimab (respiratory viruses) and Tolebrutinib (multiple sclerosis):
– commercial monitoring of drugs approved by the FDA (Dupixent) or recognized as innovative (Efanesoctocog alpha for Hemophilia) and approved by the European Commission (Nexviadyme® and Xenpozyme);
– Acquisition of Kadmon and Owkin, specialized in skin conditions research after Origimm, Amunix in immuno-oncology, strengthening the R&D portfolio of biological agents.
Challenges
– Image tarnished by the delay of the vaccine against Covid 19;
– Russia-Ukraine conflict: Risk of delay in completion of clinical trials in patients with multiple sclerosis and chronic obstructive pulmonary disease;
– Follow-up of initial approvals: Altuvilio (priority review granted by FDA) and CHMP recommendations for Beyfortus and Enjaymo;
– Earnings per share growth of at least 16% on target for 2022, following a strong jump in vaccine-driven revenue in Q3.
Learn more about the “Pharmaceutical” sector
Loss of momentum in European studies
European studies are losing ground to American and Chinese studies. In twenty years, Europe’s share in global R&D has fallen from 41% to 31%. China’s share increased from 1% to 8%. As for the USA, which oppresses Europe, in 2001 it allocated only 2 billion euros per year from Europe to research and development, but now this gap has reached 25 billion! Some experts accuse the European authorities of not implementing an effective policy. Therefore, pharmaceutical research funding should be better targeted through the Horizon 2020 programme. Despite the quality of French research, it is only eighteenth in European funding. In contrast, the United States concentrates funding in Boston and a few centers of excellence.
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