Sanofi progresses on its strategy to drive growth across its businesses and innovation with emerging leadership in immunology

Capital Markets Day 2021: Sanofi progresses on its strategy to drive growth across its businesses and innovation with emerging leadership in immunology

• Execution of strategic plan announced in December 2019 is well underway with key growth drivers delivering

• New business focus in General Medicines and Consumer Healthcare designed to accelerate Sanofi’s growth, cash flow generation, and improve profitability

• Emerging leadership in immunology with Dupixent^® (dupilumab) on a clear path of achieving more than €10 billion in peak sales in Type 2 inflammatory diseases further strengthened by rich pipeline

• Capital Markets Day webcast follows the fourth quarter and 2020 full year results from 1:30-2:15 p.m. CET / 7:30-8:15 a.m. EDT; Capital Markets Day event will be held from 2:30-5:00 p.m. CET / 8:30-11:00 a.m. EDT

PARIS – February 5, 2021 – Today, Sanofi holds a virtual investor event with key members of the Sanofi leadership team to share and discuss the overall progress in implementing the strategy in core parts of the business as well as the transformation of R&D. Capital Markets Day 2021 provides a comprehensive update on Sanofi’s General Medicines and Consumer Healthcare strategies as well as Dupixent^® (dupilumab) and multiple new immunology assets.

“Since announcing our new strategic framework in December 2019, we have been relentlessly driving forward our actions to accelerate R&D efforts, building one of the industry’s most differentiated pipelines in Specialty Care, including our work in immunology which has the potential to transform patient care across this therapeutic area,” said Paul Hudson, Chief Executive Officer, Sanofi. “We are tracking ahead of schedule on our plans for growth, efficiencies, and cutting edge science in our pipeline. The reshaping of our General Medicines and Consumer Healthcare business units will enable both to become even more significant contributors to Sanofi’s growth and profitability.”

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Key highlights to be presented at Capital Markets Day 2021

Financial Update: Sanofi confirms its target to expand its business operating income (BOI) margin to 30% by 2022, with the ambition for its BOI margin to exceed 32% by 2025. The company is tracking toward its 2022 target as planned, with the BOI margin up 120 basis points in 2020. Sanofi plans to announce today its expectation that Dupixent will become accretive to BOI margin by end of 2022.
In 2020, Sanofi achieved around €1.7 billion of savings – almost 85% of the 2022 target announced at Capital Markets Day 2019. Today, Sanofi is increasing its cost savings target by €500m to €2.5bn by 2022, to be derived from continued operational excellence. These extra €500m savings are intended to be fully reinvested to further drive top line growth and fund the pipeline.

General Medicines Update: Sanofi has prioritized core medicines with differentiated and/or established profiles that have significant opportunity for growth in key markets. Some of these well-established medicines are the standard-of-care for patients living with diabetes or cardiovascular disease.

“We are focusing on our differentiated core brands in key markets to fully realize their volume potential, compensating for price erosion, and aimed at generating today’s level of sales in 2025.¹ This objective will be supported by the ongoing implementation of our innovative go-to-market model, while we continue to streamline the tail of the portfolio to improve profitability,” said Olivier Charmeil, Executive Vice President, General Medicines.

Consumer Healthcare Update: Sanofi has advanced on its plan to establish a standalone business to unlock the value of brand equity and outperform the global market.

“With the ongoing implementation of our fully integrated standalone model, we look forward to being more agile and reducing the complexity of our portfolio to drive growth with our consumer-centric, data-driven marketing approach,” said Julie Van Ongevalle, Executive Vice President, Consumer Healthcare. “We continue to make progress in bringing two potential over-the-counter switches to the market in the coming years that could lead to a blockbuster opportunity in combined sales.”

Transformational Culture: Sanofi is engaging its workforce in a cultural shift towards Play to Win behaviors, including accountability, productivity, and increased focus. Sanofi’s 2025 People Ambitions are based on four key pillars and put patient lives at the center of the company’s business purpose.

“Our teams have embraced our Play to Win strategy and are confident to leave our old ways of working behind,” said Natalie Bickford, Executive Vice President, Chief People Officer. “A topic that is close to my heart is establishing a culture of diversity and an inclusive environment that reflects different patient populations. This includes better representing the diversity of our patients in clinical trials and involving all local leadership teams in their community projects.”

R&D Update: Sanofi has taken a unique approach to transforming its R&D efforts and expanding its capabilities based on three pillars – pathways, patients, and platforms. In 2020, 12 Specialty Care projects in the R&D pipeline entered Phase 3, demonstrating significant progress in moving forward a pipeline of potentially innovative medicines to address unmet patient needs.

“Since I took on the leadership of Sanofi R&D, we have transformed our approach to the discovery and development of medicines with a focus on deep understanding of disease pathways informed by patient insights, while leveraging our expanding repertoire of unique research platforms,” said John Reed, M.D., Ph.D., Global Head of Research & Development at Sanofi. “Today, I look forward to sharing the breadth and depth of Sanofi’s rich immunology pipeline, which positions us to bring practice-changing innovation to patients.”

Due to the current virtual environment, Sanofi intends to keep the investor community updated on its ongoing progress through brief and comprehensive events throughout 2021.

Capital Markets Day 2021 event details

Capital Markets Day 2021 will be held today from 2:30-5:00 p.m. CET / 8:30-11:00 a.m. EDT, following the fourth quarter and 2020 full year results analyst call. For background slides and webcast (audio only) please refer to the following link: https://www.sanofi.com/en/investors/financial-results-and-events/investor-presentations/capital-markets-day-2021.

¹ Excludes Industrial Affairs third party sales.

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