2022 will be a turning point for Sanofi, details on Euroapi implementation, instructions and AG reports

It was in the exhibition park, the fifteenth in Paris, for the first time for the pharmaceutical laboratory, which is still accustomed to the Palais des Congrès in Port Mayo, held a general meeting of Sanofi. It went without problems. Shareholders had to vote for seventeen draft ordinary decisions and one draft extraordinary decision. The third resolution, concerning the payment of an additional dividend in kind for the distribution of shares in Euroapi, has been widely adopted. He is signing an important event: the division of the Sanofi Active Ingredients Production Unit, which will go public this Friday. The shares of Euroapi distributed in this way will account for approximately 58% of the new company’s capital.

Investir was entrusted with several hundred proxies representing 50,135 shares.

Arriving at the entrance to Room 1, good point documentation, but it directs you to the Sanofi website to look for a solution. What did not fail to satisfy shareholders exceeded this “all digital”.

President Serge Weinberg opens the session: “ Our group achieved success in 2021, despite the bad wind. Business grew by 7% at constant exchange rates, and Dupixent, our immunological treatment for various indications, recorded an impressive growth of 52% last year. This puts the group at the forefront of the world in the field of immunology. All other divisions also progressed, which allowed the net result per share to increase by 15.5%. In addition to these indicators, we have pursued a stable investment policy, allocating $ 6.4 billion for the purchase of biotechnology. It was also a year that allowed the wonders of science to continue. »

The chairman then returned to Sanofi’s stock market performance: ” The stock gained 13.3% on January 2 against a 9.9% decline in Cac 40 and the quasi-stability of European and American pharmacies. This indicates that Sanofi has managed to break away from the market “.

At least 5.7 billion was also spent on R&D.

It was the turn of Paul Hudson, the British managing director. For a few minutes, he begins French, trying to approve the assembly to explain the band’s new logo, which pays tribute to the past and resembles the 1973 Sanofi logo. He clarifies that next year Sanofi will be 50 years old.

He talks about his strategic plan “Play for Victory”, primarily estimating that the laboratory is on track to achieve its goals for the current year. 2022 will be a year of turning points before a new era in 2023, which will be marked by the launch of several innovative and transformative drugs.

Ambitions of the “Play for Victory” plan.

Three pillars of the strategy are explained: a turnover of 13 billion at cruising speed for Dupixent, but ” which can only be a step “He clarifies,” in addition to Dupixent, we plan to quadruple the revenue from immunology by 2030 with 13 transformative drugs. Vaccine sales are expected to double by the end of the decade, knowing that of the 10 new vaccines to be released by 2025, six will be RNA-based. Finally, a portfolio of 90 first-class projects, mainly in immunology, neurology and vaccines, is also one of the main areas of the plan.

The subsequent intervention of John Reed, the world’s director of research, also drew loud applause. He recalls that 7 clinical trials were positive in 2021, while Sanofi received 8 major endorsements and 28 “quick” designations.

Ten new molecules entered the clinical phase of internal research last year. This is unprecedented.

Then John Reed describes in detail the drugs he has high hopes for: treatment of obstructive pulmonary bronchitis (COPD), a drug against graft rejection against the host (rubber bands), treatment of hemorrhagic episodes of hemophilia A (ephanesoctocog) and rare diseases, xenposis and finally, the Nirsuvimab vaccine.

After a brief presentation of Sandrin Butier-Streff’s CSR commitments, the floor is given to CFO Jean-Baptiste de Chatillon, who details the report and considers himself very confident in achieving the 2.5 billion goal. savings until 2022. He analyzes the very strong financial position of Sanofi, whose free cash flow has doubled since 2018 and reached 8 billion, and whose equity is 69 billion euros for 10 billion net debt.

The compensation of the performer is described in detail. As for Paul Hudson for the fixed part to be voted, from 2022 it will increase from 1.3 million to 1.4 million.

For 2021 (voting by results) the variable is 2.31 million euros compared to 2.21 in 2020. Including a fixed 1.3 million, the total amount reaches 3.61 million and increased by 2.7% compared to the previous year.

The famous “Golden Greetings”, the compensation for taking office, paid in two installments in cash, is 2.2 million paid in 2021 and about 2 million paid in 2022.

The renewal of the four directors, including General Manager Paul Hudson, Christoph Babul, L’Oréal CFO Patrick Crohn and Danone President Gilles Schnep, has been the subject of in-depth commentary.

Three new directors are presented in detail to strengthen (or replace retired board members). These are Carol Ferran, CFO of Capgemini, Emile Voest, MD and Director of Cancer Core Europe, and Antoine Yever, MD and Head of Medical Development, Centessa Pharmaceuticals, Inc. (USA). At the end of the general meeting, the council will have 16 members.

Introducing Euroapi

Jean-Baptiste de Chatillon then explains how the stock market of the Euroapi production unit will be listed. Sanofi shareholders will receive one Euroapi share for every 23 Sanofi shares in the form of an additional dividend. The distribution will take place on May 10, ie 4 days after the group’s first listing on the stock exchange.

Euroapi is the world’s second largest producer of active pharmaceutical ingredients (including small synthetic molecules and large molecules such as peptides and oligonucleotides). The group aims to reach a turnover of about one billion in 2022.

The French state plans to buy 12% of the capital for a maximum of 150 million euros. Sanofi will retain 30% of the capital of Euroapi, a laboratory that accounts for 49% of the company’s drug production accounts in 2021.

Opening a question / answer session.

Asked about Paul Hudson’s alleged exorbitant salary, Serge Weinberg said: “ We were committed to hiring the best in the global market for highly competitive management of pharmaceutical companies. Today, it is the lowest paid CEO of the market. Only Bayer’s performance is lower, and their performance is far from that of Sanofi. »

As for the depaque, the president said it was very difficult with many civil, criminal, administrative courts and class action procedures. ” In French law there is no possibility to conclude an agreement, as in the American “he clarified” procedures continue, and the product continues to be administered to some patients with epilepsy who really need it. “.

When questioned about the COVID-19 vaccine, which was never released, Serge Weinberg acknowledged that the failure was extremely painful. ” We realized that we were left behind on RNA informationadded Paul Hudson. In addition, our influenza vaccine platform has been very slow. It takes 5 years to create a more classic recombinant vaccine. It is a miracle that we have managed to develop a universal booster with a very strong immune response and which can be stored at room temperature. It is considered an EMA and can be used in the fall if an amplifier is needed. »

Serge Weinberg also clarified that the price of the Sanofi vaccine will be twice cheaper than the American vaccine from Pfizer. He also did not hesitate to note that this temporary monopoly was not reflected in the assessment of the American laboratory …

Transition to vote: all resolutions are basically adopted.