Citing its lack of success in bringing a new blockbuster to market and the expense of trying to do so, Sanofi (NASDAQ:SNY) has decided to stop further research in diabetes in favor of more specialized disease areas like cancer.
The diabetes business accounted for 13.3% of its Q3 sales (€1,261M/9,499M), down 9.9% from a year ago. Lantus was the top seller at €751M (-17.5%).
It will also stop research in cardiovascular diseases in light of development headwinds and disappointing sales of Praluent (alirocumab).
Key focus areas going forward will be specialty diseases, including hemophilia, breast cancer and multiple sclerosis and vaccines.
The company believes IL-4 receptor alpha antagonist Dupixent (dupilumab) will be a big winner, expected to generate €10B ($11B) in peak annual sales (from €2B this year).
It also plans to separate its OTC business and cut €2B in operating costs by 2022.
Shares up 4% premarket on light volume.
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