Sanofi SA's SNY CEO, Paul Hudson, is confronting mounting investor pressure as shareholders seek concrete details about the company's expanded R&D budget.
In October, the company redirected funds towards testing new immunology and inflammation drugs in an unexpected shift in its strategy.
Hudson's decision to abandon 2025 margin targets to fortify the drug pipeline sparked concerns among investors, overshadowing the company's proposed listing of its consumer unit.
Investors, expressing a need for transparency, are urging Hudson to provide detailed spending plans for individual experimental drugs and their potential commercial viability.
Sanofi's shares have faced relative underperformance compared to industry counterparts, compounded by concerns about over-reliance on its bestseller, the anti-inflammatory drug Dupixent, despite recent successful drug launches, including treatments for hemophilia, respiratory infections in infants, and type 1 diabetes.
Prior setbacks in the COVID-19 vaccine race and the failure of a promising breast cancer drug candidate have also contributed to investor unease.
Price Action: SNY shares are down 0.81% at $46.64 during the premarket session on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
