In a recent internal disclosure, Sanofi SA (NYSE:SNY) has expressed its plans to trim its diabetes and cardiovascular (CV) labor force by 20% amid the underperformance of the market for diabetes and CV drugs.
Job Cuts
Accordingly, the proposed layoff is part of the company’s broader plan to transform its diabetes and CV business.
“As a result of the new model, we did announce an approximate 20% staff reduction, including our sales force and some business support functions for this business unit,” explained Ashleigh Koss, Sanofi spokesperson.
Koss has not specified how many employees will lose their jobs as part of the company’s restructuring efforts. Some of those who will be affected can apply for other positions within Sanofi. Otherwise, as the company guarantees, they will rightfully receive their respective health benefits, outplacement services, and severance packages.
Generally, the pharmaceutical giant’s diabetes and CV drug sales have long been suffering from payers’ preference for cheaper alternatives. More and more rival players are entering the scene with cheaper versions of Sanofi’s products.
The company’s announcement follows a series of job cut decisions by various pharmaceutical industry players amid certain pressure experienced in terms of revenue growth and tight competition.
Dupixent Commercialization
In other news, the European Medicines Agency (EMA) has recently approved for review the Marketing Authorization Application (MAA) of Sanofi and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) for Dupixent (dupilumab) for the treatment of adult patients with moderate-to-severe atopic dermatitis (AD) who are also candidates for systemic treatment.
The MAA is backed by supporting results from three Phase 3 clinical trials under LIBERTY AD, a clinical development program that has enrolled more than 2,500 subjects. The clinical trials have evaluated Dupixent as a monotherapy and in concomitant administration with topical corticosteroids.
In September, the US Food and Drug Administration (FDA) has also accepted for Priority Review the companies’ Biologics License Application (BLA) for Dupixent. The BLA has a target action date of March 29.
Dupixent is also currently being assessed for the treatment of pediatric AD, nasal polyposis, eosinophilic esophagitis, and asthma.
On Monday, Sanofi has closed at $40.59 while Regeneron Pharmaceuticals has closed at $387.10.
