NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Friday, July 17, 2015

Sanofi’s (SNY – Analyst Report) newly appointed Chief Executive Officer Olivier Brandicourt, after just three months of being at the helm, has made a big move by declaring plans to reorganize its business. Brandicourt intends to restructure the seven existing business units into five global business units. Along with its existing vaccines unit – Sanofi Pasteur – and the animal health business – Merial, the company plans to create three new global business units, namely, General Medicines & Emerging Markets, Specialty Care and Diabetes & Cardiovascular.

We note that the company was so far centered around seven growth platforms – Diabetes, Vaccines, Consumer Healthcare, Genzyme, Animal Health, Other Innovative Products and Emerging Markets.

Sanofi’s first unit will combine the company’s established products, generics, consumer healthcare and all pharmaceutical businesses in Emerging Markets under the name, General Medicines & Emerging Markets Global Business Unit.

The restructuring puts the company’s rare diseases, multiple sclerosis, oncology and immunology medicines including the two experimental biologics, sarilumab and dupilumab, under the Specialty Care Global Business unit, to be called Sanofi Genzyme.

In addition, the diabetes as well as cardiovascular segment including the company’s potential multi-billion dollar cholesterol management candidate, Praluent (alirocumab), will be clubbed into one single unit called the Diabetes & Cardiovascular Global Business unit.

While Pascale Witz, who currently serves as the Executive Vice President (EVP), for global divisions and strategic development, will head the Diabetes & Cardiovascular unit, the current EVP of global commercial operations, Peter Guenter, will take on the General Medicines & Emerging Markets unit.