New Sanofi CEO Aims to Prioritize Investment on Winnable Areas
October 01 2019 - 3:51AM
Dow Jones News
By Denise Roland
PARIS--Sanofi SA's (SAN.FR) 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 AG (NOVN.EB) 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.
Write to Denise Roland at denise.roland@wsj.com
(END) Dow Jones Newswires
October 01, 2019 04:36 ET (08:36 GMT)
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