(AOF) – Based on the evolution of foreign currencies since the end of 2021, Sanofi declares in a preliminary estimate that the impact of currencies on its turnover for the fourth quarter of 2022 is approximately between +4.5% and +5.5%, and that their impact on fourth quarter earnings per share is approximately between +6% and +7%. The impact on full year 2022 revenue would be approximately between +6.5% and +7.5%, while the impact on full year 2022 earnings per share would be approximately between +8. % and +9%.
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Key points
– 5th worldwide pharmaceutical group, created in 1994, first in Europe, and 1st worldwide in vaccines;
– Balanced sales of €37.8 billion from 4 divisions: general medicine for 34%, specialty medicine (immunology, neurology and oncology) for 35%, vaccines for 20% and consumer healthcare;
– Growing share of emerging countries (34% of sales) behind the United States (38%) and Europe (28%);
– Business model in 4 points: a simplified organization, a restructured portfolio containing more organic products, a transformed R&D and strong ambitions in terms of profitability and financial solidity;
– Split capital (excluding L’Oréal: 9.48% of shares and 16.95% of voting rights), Serge Weinberg chairing the 16-member board of directors, Paul Hudson being CEO;
– Healthy balance sheet with net debt of €12.2 billion and free cash flow of €3.2 billion at the end of June.
Challenges
– 2020-2025 “Play to win” plan aimed at creating an agile group and world number 2:
– 2020/22: operating margin of 30%, €2.5 billion in cost savings,
– 2023/25: reduction of 1/3 of product families, productivity driven by R&D and digital in factories and operating margin of 32%;
– Innovation strategy:
– 5 areas of research: immunology & inflammation, oncology, neurology (particularly sclerosis), rare hematological diseases & rare diseases, vaccines,
– 91 projects in progress, including 29 in phase 3 and 5 awaiting approval by the authorities,
– developed in collaboration – Kymera for immunology, Translate Bio in RNA for vaccines – or by 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 in CO2 emissions for scopes 1 & 2 and 30% for scope 3,
– 2027: elimination of plastic packaging for vaccines,
– 2025: eco-design of all new products;£
– 2022: launch of Impact, drugs sold without profit in 40 poor countries,
– issues of lines of credit indexed to sustainable development;
– Impact of the 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 haemophilia) and approved by the European Commission (Nexviadyme® and Xenpozyme);
– After Origimm, specialized in research on skin conditions, Kadmon and Owkin, acquisition of Amunix in immuno-oncology, strengthening the R&D portfolio of biological agents.
Challenges
– Image tarnished by the delay of the vaccine against Covid 19;
– Russian-Ukrainian conflict: risk of delay in completing clinical trials on patients in Multiple Sclerosis and Chronic Obstructive Pulmonary Disease;
– Follow-up of preliminary approvals: Altuvilio (priority review granted by the FDA) and CHMP recommendations for Beyfortus and Enjaymo;
– After the strong jump in revenues, driven by vaccines in the 3rd quarter, 2nd increase in the 2022 objective of growth of at least 16% in earnings per share.
Find out more about the “pharmacy” sector
Loss of speed in European research
European research is losing ground to American and Chinese research. In twenty years, Europe’s share has fallen from 41% to 31% in global R&D. China’s share jumped from 1% to 8%. As for the United States, which supplanted Europe, in 2001 it devoted only 2 billion euros per year more than Europe to R&D, whereas now this gap has reached 25 billion! Some experts accuse the European authorities of not having deployed effective policies. The financing of pharmaceutical research should therefore have been better targeted via the “Horizon 2020” programme. France only comes in eighteenth position in European funding despite the quality of its research. Conversely, the United States concentrates funding on Boston and a few centers of excellence.