Sanofi laboratory shares fell by almost 19% on the Paris Stock Exchange this Friday, October 27, its worst session in decades, after the group reduced its short-term financial objectives as part of its strategic plan.
The action plunged 18.93% to 91.43 euros. Its valuation, the fifth largest in the Parisian financial center, fell by almost 25 billion euros, dragging down the entire CAC 40 (-1.36%). In addition to less good financial performance than expected in the third quarter, “the profit warning for 2024 and the abandonment of the margin target in 2025” were very disappointing, according to Stifel analysts. The company also announced a savings plan of up to 2 billion euros.
Sale of the “Consumer Health” activity
Sanofi announced on Friday morning its intention to separate its “Consumer Health” activity in 2024 to focus on innovative drugs and vaccines and indicated that it was targeting savings of up to €2 billion. euros between 2024 and the end of 2025.
This separation will take place “at the earliest in the fourth quarter of 2024, through the creation of a listed entity whose headquarters will be in France”, detailed the group in a press release published on the occasion of the presentation of its quarterly results. .
This operation “will make it possible to further adapt the management and allocation of resources to the needs of the biopharmaceutical activity”, where “value creation opportunities and longer-term operational levers have been identified to support the acceleration investments in research and development,” explained the group.
Sanofi’s “Consumer Health” activity includes food supplements and various products sold without a prescription such as Mucosolvan for coughs, Allegra for rhinitis and the Novanuit brand for sleep. There is also paracetamol Doliprane to relieve pain. In the third quarter, it showed an increase of 4.6%, supported by products related to digestion and allergies, representing 1.245 billion euros, or more than 10% of its turnover.