Paris-based pharmaceutical giant Sanofi (NASDAQ: SNY) is embarking on a comprehensive “full pipeline reprioritization” that will result in significant layoffs and corporate restructuring, according to an internal communication dated April 4, 2024. The strategic shift, led by Sanofi’s R&D head Dr. Houman Ashrafian, follows an extensive review and consultation with the company’s internal R&D and commercial leadership.
Dr. Ashrafian has initiated the difficult process of informing employees about the upcoming changes, emphasizing that the reprioritization will impact the workforce and that communication with affected teams is a top priority. While the exact number of staff affected remains undisclosed, it is clear that the reorganization will span multiple countries where Sanofi operates. This move comes on the heels of Sanofi’s Q4 2023 earnings report, which signaled an intention to shift resources away from oncology and towards immunology.
Dr. Ashrafian, who joined Sanofi in September 2023, brings a wealth of experience from his previous role as a managing partner at SV Health Investors, a private equity and venture capital firm. His appointment coincided with the launch of the “next chapter” of Sanofi’s “Play to Win” strategy in October 2023. At that time, CEO Paul Hudson outlined plans to implement cost-cutting measures aimed at achieving EUR 2 billion (USD 2.16 billion) in savings from 2024 to end-2025, which would then be redirected towards innovation and growth initiatives. Additionally, the company revealed plans to spin off its consumer healthcare business into an independent entity.
Sanofi is focusing on allocating resources to key therapeutic areas, with immunology being a central focus. The company has set an ambitious target to increase the number of Phase III trials by 50% over the next two years, aiming for 35 ongoing late-stage studies by the beginning of 2026. Despite the planned layoffs, Sanofi intends to bolster its R&D spending by an additional EUR 700 million (USD 758 million) in 2024, underscoring its commitment to driving innovation and growth in the pharmaceutical sector.- Flcube.com
