Why Sanofi Is Not Exiting Nigeria, Changing Its Global Business Model by Sunkanmi VAUGHAN

The reason is unusual and too technical for most people to understand, that includes most journalists that cover business and political news.

As one with the understanding of that highly technical professional sector, I will break down the technicality in the Sanofi strategy for easy understanding and explain why the misunderstanding or misreporting occurred.

In the business world covered by economy/ business-reporting journalists, everything boils down to profit. It can be a real struggle indeed for the journalists to understand the priority of Sanofi. If you add the unpatriotic politics of disinformation then you have a bigger problem to convince those who yearn for only bad news about our country Nigeria.

Already, there are twists to the new Sanofi model and it is necessary to understand why it has absolutely nothing to do with Nigeria or any other country but Sanofi's medium and long term strategy to sacrifice profit for now and focus on research and development of new drug molecules.

About Sanofi

Sanofi S.A. is a French multinational pharmaceutical and healthcare company headquartered in Paris, France. Sanofi is present in about 100 countries, listed on EURONEXT: SAN and NASDAQ: SNY.


Sanofi CEO defends company’s move to abandon profit guidance and boost research


Sanofi CEO Paul Hudson on Wednesday, 8th November, 2023 defended his company’s recent moves to abandon future profit guidance and up its investment in its own research programs, arguing that the dramatically negative market response didn’t reflect the potential rewards that could stem from the plan.

“Would I have liked the stock market reaction to be more generous? Of course,” Hudson said at a Financial Times event in London. “But this is a long-term game, and if you’re trying to deliver long-term value, you try not to make too many short-term decisions.”

Sanofi unveiled its R& D plans on 27th October, 2023 as it announced its third-quarter performance and said that it was spinning out its consumer health division.

As the company said it was going to spend more money on research, it also withdrew earnings outlooks for 2025. Company executives have argued that this was the moment — when Sanofi has a strong pipeline and isn’t facing patent expirations for years — to increase its R& D resources, even at the expense of short-term profits.

What is Research and Development (R& D) in the Pharmaceutical industry?

Pharmaceutical Research and Development (R& D) is a critical process of discovering new active pharmaceutical molecules that cater to human diseases.

The Institute of Medicine, 2007, refers to Pharmaceutical R& D as the pharmaceutical research and development of new medicines.

The process begins with understanding the disease and selecting a target (usually a receptor site on a cell) that can potentially be affected by a drug molecule.

The process usually takes long time to complete, from discovery and isolation of the molecule of the Active Pharmaceutical Ingredient (API), conduct of clinical trial phases , filing for approval and getting to a successful approval stage, release of the patented pharmaceutical product to the market can cumulatively take between10 to 15 years.

The process is very expensive, the London School of Hygiene & Tropical Medicine estimated that the median cost of bringing a new drug to market is $985 million, and the average cost is $1.3 billion. It is mostly big pharmas like Sanofi that play in pharmaceutical R& D field, and it's usually a huge drain on their human and financial resources.

Pharmaceutical R& D is equally very lucrative when the drug produced from the process becomes a phenomenal commercial success and remarkably improves the healthcare of humanity. The pharmaceutical company is incentivised with exclusive right to manufacture and market the new medicine as the innovator brand owner for up to 10 years like Pfizer's Sildenafil citrate of Viagra popularly used for treating erectile dysfunction in men.

Pharma R& D involves multidisciplinary teams across the spectrum of healthcare and volunteers to participate in the trials. If during post approval phase of the drug, there's an unintended adverse reaction or life-threatening side effect seen in larger population size, the approval may be suspended or withdrawn completely. All the resources running into billions of dollars may be lost! High risk but high rewards for success too.

Conclusion
The change in the model adopted by Sanofi has nothing to do with Nigeria or our local economic policies. It's for strategic reasons by Sanofi to re-allocate its resources towards long term priority of discovering new drugs.

https://businesspost.ng/featureoped/why-sanofi-is-not-exiting-nigeria-changing-its-global-business-model/
Mynd44 nlfpmod

Dey play.
The joke is on you and the emilokan journalist that is deceiving you.

You did not go to meet the company to get information on why they have left, you hire one sukanmi vanghan to write so as to deceive people with propagandas as usual.
Just the same way one "chigozie" was hired to write under bbc that tinubu fake certificate is not fake.

Dey play.
Prices of their drugs has 3tripled and almost quadrupled . A third party is now the one handling things here.
You are hiring one propagandist to feed you what you want to hear.

Madam posh did more than you. She has joined her ancestors due to effect of the bad governance she celebrated because of her selfish gains.

Tinubu consequence will reach you.

FreeStuffsNG:
Why Sanofi Is Not Exiting Nigeria, Changing Its Global Business Model

The reason is unusual and too technical for most people to understand, that includes most journalists that cover business and political news.

As one with the understanding of that highly technical professional sector, I will break down the technicality in the Sanofi strategy for easy understanding and explain why the misunderstanding or misreporting occurred.

In the business world covered by economy/ business-reporting journalists, everything boils down to profit. It can be a real struggle indeed for the journalists to understand the priority of Sanofi. If you add the unpatriotic politics of disinformation then you have a bigger problem to convince those who yearn for only bad news about our country Nigeria.

Already, there are twists to the new Sanofi model and it is necessary to understand why it has absolutely nothing to do with Nigeria or any other country but Sanofi's medium and long term strategy to sacrifice profit for now and focus on research and development of new drug molecules.

About Sanofi

Sanofi S.A. is a French multinational pharmaceutical and healthcare company headquartered in Paris, France. Sanofi is present in about 100 countries, listed on EURONEXT: SAN and NASDAQ: SNY.


Sanofi CEO defends company’s move to abandon profit guidance and boost research


Sanofi CEO Paul Hudson on Wednesday, 8th November, 2023 defended his company’s recent moves to abandon future profit guidance and up its investment in its own research programs, arguing that the dramatically negative market response didn’t reflect the potential rewards that could stem from the plan.

“Would I have liked the stock market reaction to be more generous? Of course,” Hudson said at a Financial Times event in London. “But this is a long-term game, and if you’re trying to deliver long-term value, you try not to make too many short-term decisions.”

Sanofi unveiled its R& D plans on 27th October, 2023 as it announced its third-quarter performance and said that it was spinning out its consumer health division.

As the company said it was going to spend more money on research, it also withdrew earnings outlooks for 2025. Company executives have argued that this was the moment — when Sanofi has a strong pipeline and isn’t facing patent expirations for years — to increase its R& D resources, even at the expense of short-term profits.

What is Research and Development (R& D) in the Pharmaceutical industry?

Pharmaceutical Research and Development (R& D) is a critical process of discovering new active pharmaceutical molecules that cater to human diseases.

The Institute of Medicine, 2007, refers to Pharmaceutical R& D as the pharmaceutical research and development of new medicines.

The process begins with understanding the disease and selecting a target (usually a receptor site on a cell) that can potentially be affected by a drug molecule.

The process usually takes long time to complete, from discovery and isolation of the molecule of the Active Pharmaceutical Ingredient (API), conduct of clinical trial phases , filing for approval and getting to a successful approval stage, release of the patented pharmaceutical product to the market can cumulatively take between10 to 15 years.

The process is very expensive, the London School of Hygiene & Tropical Medicine estimated that the median cost of bringing a new drug to market is $985 million, and the average cost is $1.3 billion. It is mostly big pharmas like Sanofi that play in pharmaceutical R& D field, and it's usually a huge drain on their human and financial resources.

Pharmaceutical R& D is equally very lucrative when the drug produced from the process becomes a phenomenal commercial success and remarkably improves the healthcare of humanity. The pharmaceutical company is incentivised with exclusive right to manufacture and market the new medicine as the innovator brand owner for up to 10 years like Pfizer's Sildenafil citrate of Viagra popularly used for treating erectile dysfunction in men.

Pharma R& D involves multidisciplinary teams across the spectrum of healthcare and volunteers to participate in the trials. If during post approval phase of the drug, there's an unintended adverse reaction or life-threatening side effect seen in larger population size, the approval may be suspended or withdrawn completely. All the resources running into billions of dollars may be lost! High risk but high rewards for success too.

Conclusion
The change in the model adopted by Sanofi has nothing to do with Nigeria or our local economic policies. It's for strategic reasons by Sanofi to re-allocate its resources towards long term priority of discovering new drugs.

https://businesspost.ng/featureoped/why-sanofi-is-not-exiting-nigeria-changing-its-global-business-model/
Mynd44 nlfpmod

..
anything to justify your 35k stipend..
yeye

.

As far I'm concerned, there's no logic in a company leaving a country where your products hold healthy comparative advantage and are hugely sought-after among the residents. This thing is not rocket science to decipher that exiting such place is not primarily hinged on purported unfavorable government policies, there's more to it.