ARTICLE | Finance
Investors don’t like the move, slash $25B from its market cap
By Stephen Hansen, Director of Biopharma Intelligence
October 27, 2023 11:48 PM UTC
Sanofi has announced it is taking steps toward becoming a more pure-play innovative biopharma company, a path taken by most of its large pharma peers in recent years. In its 3Q23 earnings, the French biopharma said it intends to spin out its consumer health business unit and invest an additional €2 billion in high-value R&D programs.
That reinvestment into the pipeline of Sanofi (Euronext:SAN; NASDAQ:SNY) will come at a cost, as the capital will be reallocated from a strategic efficiency initiative that had targeted savings of €2 billion ($2.1 billion) from 2024 to year-end 2025. Sanofi said the increase in R&D investment, coupled with a small increase in the effective tax rate in 2024, led it to provide preliminary guidance that business EPS in 2024 would decline at a low-single digit rate…
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- Source: https://www.biocentury.com/article/650422/sanofi-the-latest-pharma-to-focus-exclusively-on-biopharma-business