Sanofi to keep on with cost savings

SANOFI WILL continue to implement cost savings after having reached a 1.5 billion euros ($1.75bn) cost reduction target a year ahead of expectations, and added that several of its key drugs were selling well.

The French drugmaker, hurt by declining revenue at its diabetes business in recent years, is eyeing a return to growth from the second half of 2018 as it builds upon acquisitions made earlier this year.

“It’s only the beginning, and we will continue to be very efficient,” chief executive Olivier Brandicourt said.

The CEO did not elaborate further but referred to a reorganization of Sanofi’s global business units unveiled earlier this week.

“We are moving from five business units to four and that’s going to be very helpful in addition to generating synergies, savings,” said Brandicourt.

The executive flagged atopic dermatitis drug Dupixent, for which Sanofi has placed great hopes because of its potential to treat other diseases, as a key product that could make a difference between Sanofi and its rivals in the future.

The US Food & Drug Administration regulator is expected to approve Dupixent in asthma before the end of the year.

Sanofi said sales of Dupixent had totalled 176 million euros ($205.9m) in the second quarter.