Sanofi
new Chief Executive Paul Hudson said Tuesday that the company needs to
better focus its investment to prioritize areas where it can win.
In his first press conference for Sanofi, Mr. Hudson said he was
spending his first weeks in the job deciding in which areas the company
should direct investment.
“We need to make good choices,” said the new CEO, who joined Sanofi from
Novartis last month. “I’m bringing a sense of urgency and prioritization.”
Sanofi is one of the most diversified companies in the industry,
spanning branded prescription drugs, vaccines and over-the-counter
treatments. Within branded drugs, it produces medicines ranging from
insulin for diabetes to specialty medicines for rare diseases.
Asked whether he would maintain that diversification, Mr. Hudson said
the board “should expect that I should look with clear eyes at how we
allocate capital.”
Regarding the company’s branded drug pipeline, Mr. Hudson said he
would set a high bar for investment, requiring that drugs are the first
of their kind and the best of their kind.
“We have to be more critical to decide whether we have literally life-changing science,” he said.
Sanofi, maker of Lantus, the world’s best-selling insulin, has long
been associated with diabetes. But with sales of that product falling
amid increased competition and pricing pressure in the all-important
U.S. market, that franchise is shrinking. Mr. Hudson said he would not
treat the diabetes franchise any differently from any other therapeutic
area when deciding how best to allocate resources.
On deal-making, he said the company would first establish its
priorities then “look at where we have gaps, where we should be stronger
and find the best approach to deal with that.”
Mr. Hudson said he would provide a strategy update to investors at an event in December.
https://www.marketscreener.com/SANOFI-4698/news/Sanofi-New-Sanofi-CEO-Aims-to-Prioritize-Investment-on-Winnable-Areas-29317781/
