Sanofi develops and manufactures prescription and over-the-counter drugs and vaccines for mankind and man's best friend. The company's pharmaceutical division is focused on diabetes, cardiovascular, and multiple sclerosis products, among others. Its biggest revenue generators include insulin brand Lantus and blood thinners Plavix and Lovenox. The company also operates vaccine maker Sanofi Pasteur and Merial, one of the world's largest animal health firms, which it is selling. The US is Sanofi's largest market, but it operates worldwide.
Sanofi operates through three segments: pharmaceuticals, vaccines, and animal health. Its pharmaceutical segment is the largest, accounting for about 80% of total revenue. In addition to diabetes and its other primary areas, the company focuses on rare diseases (Gaucher, Fabry) and cancers. Sanofi also has one of the world's largest consumer health portfolios, which includes treatments for colds and allergies, pain, and heartburn.
The company's vaccines, produced through Sanofi Pasteur, generate about 15% of revenue and include immunizations against pertussis, flu, and meningitis, among other diseases. Its smallest segment is animal health, which produces a full range of veterinary products for both pets and livestock. Sanofi has agreed to sell this unit, Merial, by the end of fiscal 2016.
Although the US is Sanofi's largest market at some 35% of revenue, emerging markets as a group (including Latin American and Eastern Europe) contribute about a third.
The company has office locations, production sites, and other facilities in about 100 countries.
Sales and Marketing
Sanofi's products are marketed primarily by its own sales force, but partnerships with pharma firms such as Regeneron and Bristol-Myers Squibb also play an important role.
Sanofi's primary customers include wholesalers, distributors, pharmacies, and hospitals. The top three worldwide wholesale customers account for a quarter of total revenue, with the top three US-based wholesale customers generating more than half of US pharmaceutical sales.
Note: Growth rates may differ after conversion to US Dollars.
In 2015 the company reported revenue of €37.1 billion, up 10% from the prior year. Although all three operating segments grew year-over-year, 65% of the increase is a result of strong performance in the pharmaceuticals segment. That growth was driven primarily by favorable exchange rates, with the Genzyme business (rare disease and MS products) performing strongly as well.
Net income dropped slightly that year, falling 3% to €4.4 billion, as Sanofi invested in new products in the diabetes and cardiovascular areas, among others.
Sanofi's long-term strategy, through 2020, focuses on reshaping its portfolio, simplifying its organization, innovating in R&D, and launching new products successfully.
In 2016 the company announced plans to divest its smallest business segment, animal health products, to focus on its core pharmaceuticals and vaccines businesses. As part of the divestment, Sanofi will acquire the consumer healthcare operations of Boehringer Ingelheim, which will make Sanofi a global leader in an important area for the company. Other areas in which the company wants to enhance its portfolio include cancer, immunology, and multiple sclerosis.
In an effort to simplify its organization, Sanofi in 2016 reorganized into five business units: General Medicines & Emerging Markets (established prescription products, generics, consumer healthcare, and all pharma operations in emerging markets); Specialty Care (rare disease, MS, cancer, and immunology products); and Diabetes & Cardiovascular; as well as the vaccines (Sanofi Pasteur) and animal health products (Merial) businesses.