SANOFI
SANOFI
Wake Up statement
Sanofi is an integrated, global healthcare leader, which offers pharmaceutical drugs around the globe. Over the years, Sanofi has felt the pressure of patent cliffs, allowing generics to enter the market with comparable drugs at a fraction of the price. This is expected to have a negative impact on revenue and earnings, leading management to alter its strategy through diversification.
After examining Sanofi’s current position and the pharmaceutical landscape, our team proposes the following five strategies to help the company in its future growth:
1. Focus on Open Innovation and reduce R&D expenses
2. Develop Bio-Similar Drugs
3. Increase marketing effort in Mature Markets
4. Focus on Emerging Markets
5. Have a low cost pricing strategy
Sanofi’s “new” mission is as follows:
“We work to protect the health of the earth’s 7 billion inhabitants, improve their quality of life and respond to their potential needs. We are responding to the challenging healthcare needs of our patients by offering innovative biotech solutions and increasing our exposure in emerging countries”.
Current Mission
Sanofi’s current mission is as follows:
“We work to protect the health of the earth’s 7 billion inhabitants, improve their quality of life and respond to their potential needs. We are creating new approaches to our activities and work sectors, and are mobilized for our priority goal of bringing medicines and vaccines to patients”.
Strategic Characteristics of Industry
A. Industry life-cycle (what time is it?)
Like products, industries go through life cycle phases. The widely accepted definition of “mature industry” describes the “mature industry” as one that may be at its peak or just past it. While earnings may be stable, growth prospects are few and far between. Mature industries are characterized by low price to earnings ratios (P/E) and high dividend yields. If we apply this definition to the pharmaceutical
Wake Up statement
Sanofi is an integrated, global healthcare leader, which offers pharmaceutical drugs around the globe. Over the years, Sanofi has felt the pressure of patent cliffs, allowing generics to enter the market with comparable drugs at a fraction of the price. This is expected to have a negative impact on revenue and earnings, leading management to alter its strategy through diversification.
After examining Sanofi’s current position and the pharmaceutical landscape, our team proposes the following five strategies to help the company in its future growth:
1. Focus on Open Innovation and reduce R&D expenses
2. Develop Bio-Similar Drugs
3. Increase marketing effort in Mature Markets
4. Focus on Emerging Markets
5. Have a low cost pricing strategy
Sanofi’s “new” mission is as follows:
“We work to protect the health of the earth’s 7 billion inhabitants, improve their quality of life and respond to their potential needs. We are responding to the challenging healthcare needs of our patients by offering innovative biotech solutions and increasing our exposure in emerging countries”.
Current Mission
Sanofi’s current mission is as follows:
“We work to protect the health of the earth’s 7 billion inhabitants, improve their quality of life and respond to their potential needs. We are creating new approaches to our activities and work sectors, and are mobilized for our priority goal of bringing medicines and vaccines to patients”.
Strategic Characteristics of Industry
A. Industry life-cycle (what time is it?)
Like products, industries go through life cycle phases. The widely accepted definition of “mature industry” describes the “mature industry” as one that may be at its peak or just past it. While earnings may be stable, growth prospects are few and far between. Mature industries are characterized by low price to earnings ratios (P/E) and high dividend yields. If we apply this definition to the pharmaceutical
Bibliography: Healthcarefinancenews Merck Lilly Merck Novonordisk Lilly Fiercepharma Goodrx Appendix