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Sanofi To Discontinue Research In Diabetes And Cardiovascular

Sanofi (SNY) said that it would discontinue research in diabetes and cardiovascular diseases and would not pursue plans to launch efpeglenatide, as part of a restructuring.

The company noted that it will also optimize the commercial model for diabetes and cardiovascular and rheumatoid arthritis, including right-sizing the resources deployed behind Praluent and Kevzara.

It expects to expand its business operating income margin to 30% by 2022, with an ambition for its business operating income margin to exceed 32% by 2025.

The company also announced efficiency initiatives that are expected to generate 2 billion euros savings by 2022.

Sanofi will be structured with three core global business units. They are Speciality Care (immunology, rare diseases, rare blood disorders, neurology and oncology), Vaccines, and General Medicines (diabetes, cardiovascular, and established products).

Consumer Healthcare will be a standalone business unit with integrated R&D and manufacturing functions, the company said.

The company expects to deliver strong growth for Dupixent with the ambition of achieving more than 10 billion euros in peak sales driven by its unique mechanism of action targeting the type 2 inflammation pathway.

Vaccines are expected to deliver a mid-to-high single-digit net sales CAGR from 2018 to 2025, through differentiated products, market expansion and new launches.

Sanofi expects to increase its annual Free Cash Flow by about 50% by 2022 compared with an adjusted base of 4.1 billion euros in 2018.

In addition, Sanofi noted that it has the potential to raise capital through asset disposals, including streamlining "tail" brands in its Established Products business, and by monetizing its stake after the expiry of the lock-up under the amended and restated investor agreement with Regeneron.

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