Sanofi Bolsters Cost-Cutting in Pursuit of More Blockbusters
(Bloomberg) -- Sanofi is doubling down on cutting costs, seeking more firepower to strengthen its portfolio of cutting-edge medicines for cancer, rare diseases and other conditions.
The French drugmaker is looking to save 500 million euros ($598 million) beyond its previous target of 2 billion by 2022, after already hitting 85% of the old belt-tightening goal last year. The extra funds will be reinvested to drive sales and shore up the pipeline of future medicines, the company said Friday ahead of its capital markets day event.
Sanofi is seeking to build on its blockbuster therapy Dupixent, which remains the engine of growth. The eczema and asthma treatment is on a “clear path” to reaching more than 10 billion euros in annual sales, the company said. Sales of the drug surged 74% last year to 3.5 billion euros.
The shares rose as much as 3.2% in Paris.
Sanofi may pursue more deals after agreeing to buy Kymab last month in a deal worth as much as $1.45 billion to gain experimental medicines for inflammation diseases and cancer. That agreement followed Sanofi’s deal to spend $3.4 billion for U.S. biotech company Principia Biopharma Inc.
Sanofi affirmed its financial outlook through 2025 and said adjusted profit this year will probably grow at a high single-digit percentage at constant currencies, in line with 2020. Fourth-quarter adjusted profit was 1.22 euros per share, exceeding the average estimate of 1.17 euros.
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