Sanofi Showcases Diabetes, Cancer Pipeline; Enters R&D Pact
September 30 2010 - 3:01PM
Dow Jones News
The chief executive of French drug giant Sanofi-Aventis (SNY,
SAN.FR) on Thursday sought to demonstrate how it will secure future
growth despite looming revenue loss from expiring patents and after
cutting back on internal research and development.
"In general on our R&D front, we're still a work in
progress," Sanofi CEO Chris Viehbacher said Thursday as the company
showcased its diabetes and oncology pipeline at an investor
presentation. The company has cut an estimated 30% of projects
under development, Viehbacher said.
The company said Thursday it signed a 10-year deal worth up to
$2.2 billion with Princeton, N.J., contract research company
Covance Inc. (CVD) for the outsourcing of research and
development.
It is "very easy to cut and restructure" but "it's a lot harder
to rebuild," Viehbacher added, noting the company has one of the
weakest pipelines of drugs under development.
Sanofi will take different approaches to the fields of diabetes
and oncology, two areas the company depends upon for future growth,
Viehbacher said.
In oncology, Sanofi is increasing its focus on Asia, outsourcing
more of its projects, and concentrating on cancers affecting
smaller populations.
For the diabetes business, which operates in a market Sanofi
predicts will be worth EUR50 billion in 2015 from a current level
of EUR33 billion, the company has a global organization
headquartered in Frankfurt. Sanofi has forged alliances with
academic institutes and other companies to fill out its pipeline of
new products, and will place new emphasis on medical devices as
part of its offerings for diabetes treatment.
Shares in Sanofi closed down 1.2% in Paris while the company's
American shares were off 1.2% to $33.23.
By Mimosa Spencer, Dow Jones Newswires; +33-1-40-17-1773;
mimosa.spencer@dowjones.com