Sanofi Deepens Local Innovation Commitment to Support High-Quality Development of Healthy China

In recent years, with the continuous advancement of the Healthy China initiative, China's health care sector has achieved remarkable results and entered a "fast track" of high-quality development. In today’s challenging pharmaceutical landscape, innovative drug companies are making significant contributions to the Healthy China initiative, demonstrating unprecedented innovation and determination in pushing the frontiers of medical technology. Multinational pharmaceutical enterprises like Sanofi are also accelerating their innovative efforts under this trend, becoming a core force in co-building China’s pharmaceutical and health innovation ecosystem. With medical expertise and innovative concepts, they are contributing to the realization of the vision where everyone enjoys a healthy life.

Driving Pharmaceutical Innovation, Initiating "China Speed"

The 2023 Government Work Report pointed out that it is necessary to further implement the innovation-driven development strategy. For pharmaceutical enterprises, innovation is the most crucial factor for achieving sustainable development. In recent years, foreign pharmaceutical companies have rapidly risen and developed in the Chinese market at an impressive speed. As a key link in the global pharmaceuticals market, China has attracted an increasing number of foreign pharmaceutical enterprises to accelerate their strategic layout and investment in the country. These companies have not only established more R&D centers in China but also actively collaborated with local medical institutions and research teams to expedite the development and promotion of new drugs.

As China's medical environment and innovation ecosystem continue to improve, multinational pharmaceutical companies, including Sanofi, have rapidly entered the innovation transformation phase alongside China's pharmaceutical market, providing policy support for accelerating the introduction of new drugs and local innovation in China.

According to statistics, in 2023, Sanofi demonstrated "China Speed" by successfully driving the approval of ten innovative drugs, vaccines, and indications in China, covering fields such as immune inflammation, vaccines, diabetes, rare diseases, and transplantation. Among them, the innovative diabetes drugs insulin glargine and lixisenatide injection (I) and (II) were the first to be approved this year; the leading product in the immune inflammation field, dupilumab, received approval for three indications within this year; the quadrivalent influenza virus split vaccine for the full population (6 months and above) was approved for marketing in the vaccine field; a new generation enzyme replacement therapy (ERT) drug for treating Pompe disease and the world's first and only selective ROCK2 inhibitor approved for treating chronic graft-versus-host disease (cGVHD) were both approved for marketing this year. In addition, the pediatric indication of a multiple sclerosis treatment drug was successfully approved in China. Through scientific innovation, Sanofi helps improve patients' quality of life and health, promoting the sustainable development of China's healthcare system.

Sanofi Greater China President Wang Shi said: "Pioneering and innovation are rooted in Sanofi's DNA, serving as the driving force for our relentless pursuit of scientific miracles to help more patients 'reclaim the brilliance of life.' From 2023 to date, Sanofi has successfully achieved the approval in China of 10 innovative drugs, vaccines, and indications, which stands as strong evidence of our commitment to innovation in China. Moving forward, Sanofi will continue to be driven by innovation, further enhance its local presence, accelerate the introduction of innovative drugs and vaccines, and boost 'originating innovation' in products and services within the Chinese market. Leveraging the power of scientific innovation, we aim to bring novel medicines and solutions to Chinese patients, helping China become a global innovation engine and realizing the vision of 'Healthy China 2030' at an early date."

Focus on the Immunology Field to Accelerate Innovative R&D

Currently, about 5%-8% of the global population is threatened by autoimmune diseases. The increasing rates of disability and mortality present enormous challenges in the diagnosis and treatment of autoimmune diseases, and there is an urgent need for more effective and innovative therapies in the field of immune disease treatment. From traditional immunomodulation to the innovation of personalized treatments, the field of immune diseases is undergoing profound changes. An increasing number of innovative pharmaceutical companies are exploring more targeted and personalized treatment methods. By developing revolutionary antibodies, cell therapy drugs, and more, they are bringing new hope to patients suffering from these diseases.

According to Sanofi's Q3 2023 financial report, leveraging its globally leading R&D and technological innovation capabilities, Sanofi is building a "high-impact" first-mover advantage in the field of immunological diseases. This year alone, Dupilumab received approval for three indications, expanding its use to include moderate-to-severe atopic dermatitis across all age groups, moderate-to-severe adult prurigo nodularis, and maintenance treatment for adolescents aged 12 years and older as well as adults with asthma. Additionally, in the area of immune prevention, in May this year, Sanofi’s quadrivalent influenza vaccine (split virion) received approval in China for use across the entire population (6 months of age and above), further advancing China’s influenza prevention into a new era of "enhanced protection."

At the recent Sanofi Investor R&D Day, Sanofi shared the R&D status and target indications of 12 potential "blockbuster products" in the fields of immunology and vaccines. With these 12 "blockbuster products" at its core, Sanofi will further strengthen its leadership position in the field of immunology. While ensuring robust growth of existing products, the company will steadily launch innovative products, continuing to bring the brilliance of life to more patients.

In 2019, Sanofi introduced the "Play to Win" strategy, gradually advancing the transformation of its business model. This year, the company announced a new chapter of this strategy, clearly focusing on the field of immune diseases, fully leveraging the potential of its existing pipeline to provide breakthrough solutions for more patients and further unlocking the potential and opportunities in the Chinese market.

Broad Domestic Opportunities, Deepening Innovation Layout

In recent years, China has continued to attract and utilize foreign investment, which has accelerated the high-quality development momentum of foreign-funded enterprises in China. According to data from the Ministry of Commerce, in the first three quarters of 2023, the actual amount of foreign investment used in China was 919.97 billion yuan, a year-on-year decrease of 8.4%, while 37,814 new foreign-invested enterprises were established, representing a year-on-year increase of 32.4%. This not only reflects a stable growth trend but also demonstrates the continuous optimization of the investment structure and the increasingly significant role of large-scale projects.

China's continuously optimized business environment and its vast market advantages have made foreign enterprises highly confident in the Chinese market, strengthening their determination to expand investments in China. Against the backdrop of globalization, the ongoing participation of foreign enterprises in the Chinese market contributes to the high-quality development of China's economy. China's open posture and constantly improving business environment provide foreign companies with a broader stage and more opportunities for development in China.

At the same time, with the comprehensive promotion of the Healthy China strategy, China's health and wellness industry has also achieved remarkable accomplishments. China has become the world's second-largest pharmaceutical consumer market, attracting multinational pharmaceutical companies to increasingly participate and continuously adjust their development strategies to adapt to the ever-changing healthcare needs.

Paul Hudson, CEO of Sanofi, stated that with the full implementation of the "Winning in China" strategy, China has become Sanofi's second-largest global market and one of its key strategic markets. This has led Sanofi to continuously increase its investment and innovation efforts in the Chinese market, accelerating the promotion and application of new Sanofi drugs and medical technologies in China, while also supporting its deeper cultivation and development within the Chinese market.

Since 2019, Sanofi has regarded China as a necessary option for global synchronized R&D, continuously strengthening its local R&D capabilities and actively integrating into the local biopharmaceutical innovation ecosystem. In 2021, Sanofi established its first global research institute in China, SIBR, in Suzhou. By combining global R&D capabilities with insights from local R&D talents on China's disease landscape, it focuses on cutting-edge research in areas such as immunology, inflammation, neurology, and oncology to promote more scientific breakthroughs and innovative solutions that address unmet patient needs. Continuously enhancing its innovation strength, by 2023, Sanofi had achieved participation of over 90% of its R&D projects in China within global synchronized R&D.

Participating in the CIIE for six consecutive years is another testament to Sanofi's long-term commitment to innovation and deep engagement in China. Dupilumab, a "CIIE baby" showcased for the sixth time, stands as both a witness and participant of "China Speed." Shortly after making its global debut for COPD and China debut for asthma at this year’s sixth CIIE, dupilumab received approval in China for the treatment of asthma in patients aged 12 years and older. This marks the sixth indication approved for dupilumab in China within four years and represents the tenth innovative drug or vaccine product/new indication that Sanofi has received approval for in China this year. By the end of this year, two innovative drugs from Sanofi in the cardiovascular and respiratory syncytial virus prevention fields are also expected to gain approval in China.

Exploring innovative business models with local partners is also an important part of Sanofi's efforts to deepen its local innovation strategy in China. Sanofi recently announced the official signing of a strategic cooperation agreement with Shanghai Pharmaceuticals Holding Co., Ltd. The two parties will engage in extensive and in-depth cooperation across all channels and throughout China, focusing on several high-quality Sanofi products in key disease areas, to build an end-to-end value chain system from import, distribution to terminal sales. Through a series of measures, including this powerful collaboration with Shanghai Pharma, Sanofi aims to establish a business model better suited to the local market and achieve operational optimization and innovation, further strengthening its innovative development model in China.

Sanofi has always regarded China as the strategic core of corporate development, continuously promoting the launch of innovative products in China to ensure patients have access to necessary medicines. Alex Shi, President of Sanofi Greater China, stated that Sanofi will adhere to its mission of "Chasing Scientific Miracles, Revitalizing Life's Radiance," accelerate the introduction of innovative achievements in core business areas, further deepen local R&D and production, strengthen innovative cooperation with local Chinese partners, and actively respond to the government’s long-term strategic goals through concrete actions, becoming a reliable partner in achieving "Healthy China 2030."