According to Fierce Biotech andEndpoints News' latest update, SanofiIn progress"Project for Reprioritizing the Entire Product Line", involvingLayoffs and Cancellation of Several Oncology Research ProgramsHowever, Sanofi has not yet disclosed which projects will be cut, the number of layoffs, or the timeline.According to a spokesperson for Sanofi, the company is preparing to abandon "several oncology research projects," mainly becauseThe R&D costs in the field of oncology are higher than those in other therapeutic areas, and the likelihood of success in clinical trials is very low.In recent years, Sanofi has made considerable efforts in this field but has not always achieved the expected success.Notably, the recent changes in the company are part of the plan previously announced by Sanofi CEO Paul Hudson, which aims to establish the company as an "immunology giant" and prepare for the loss of Dupixent's exclusive rights.In September 2019, Paul Hudson left Novartis to join Sanofi as CEO. Shortly thereafter, he articulated the vision of "developing first-in-class or best-in-class medicines and vaccines," followed by2020-2025 Five-Year Strategy —— Play to Win, including four major modules: Focus on Growth, Lead Innovation, Improve Efficiency, and Redefine Ways of Working.Figure 1: Sanofi's Play to Win StrategyIn 2020, Sanofi launched the "Play to Win" five-year plan, shifting its focus to oncology and rare diseases while establishing three core global business units: Specialty Care, General Medicines, and Vaccines.As for this pipeline reorganization and layoffs, there were actually signs of it as early as 2023:In October last year, Hudson mentioned that the company mightCutting experimental assets in cancer, neurology, and inflammatory diseases, while announcing plans to spin off the consumer health division. He told investors that Sanofi intendsThrough "the reallocation of pipeline resources"Save 700 million euros`, and reorganize and redistribute it`. Shifting resources to more successful therapeutic areas, such as immunology.Shortly after the R&D day in December, Sanofi clarifiedIncrease the number of its Phase III projects within the next two yearsIncrease Ambition by 50%, Focusing on Immunology, Neurology, and VaccinesThis means that by early 2026, the company will have more than 35 ongoing late-stage studies. Based on this, Sanofi's research projects will be reduced to allow more funding for advancing high-potential projects.Figure 2: Sanofi Initiates Multiple Phase 3 Clinical Trials in ImmunologyAnd in January of this year at JPAt the Morgan Conference, SanofiHouman Ashrafian, the R&D director, reminded investors,“We don't have an endless money tree.". In thisDuring the event, Hudson told reporters that although this French pharmaceutical company"Never so strong," but the company's stumbling block in oncology has hindered its establishment of a complete franchise.Last month, Sanofi announced it would close its UK R&D site, which was acquired through a previous deal, resulting in 90 job cuts.And with itOn the contrary, Sanofi is expected to increase its R&D expenditure. The company will cut its 2025 guidance to support reinvestment. HudsonAlsoClearly stated that he expects Sanofi's R&D expenditure in 2024 to be approximately 700 million euros more than in 2023.According to Hudson's email sent to Fierce, since this reprioritization cannot be achieved without impacting employees, the top priority is to communicate with the teams affected across the entire therapeutic area.The dialogue has now begun, and in the coming weeks, the company will meet and engage with employees and social partners., providing background information for the company's choices and continuing to implement its roadmap in accordance with applicable local rules.References:[1]Sanofi to cut jobs in pipeline restructuring.Endpoints News.April 5, 2024 03:53 PM EDT.[2]Sanofi begins 'full pipeline reprioritization' with layoffs in tow, R&D chief tells staff.Fierce Biotech.Apr 5, 2024 10:53am.[3] Sanofi official website, etc.Scan the WeChat QR code to add.Medicine Space-TimeEditor Please indicate: Name + Research Direction!
