Sanofi Q4: No Nasty Surprises, But Viehbacher Is Focused on Sales Productivity Ratios
There were no nasty surprises in Sanofi-Aventis’s Q4 results. Yesterday, BNET had suggested that CEO Chris Viehbacher’s desire to cut $1.3 billion in operating costs would fall upon sales reps, whose jobs would be axed.
We also noted that, dollar for dollar (or euro for euro, in this case) Sanofi’s reps are some of the most productive in the business. So, did Viehbacher’s desire for cuts mean there was some horrible surprise in the Q4 results? As it turned out, no. Revenues were up 2.6 percent to €7 billion. Net income was up 14 percent to €1.6 billion.
As far as reps go, the company got €3.64 for every euro spent on sales and marketing. That’s down from a recent high of €4.15 but up from the year before when it was €3.46.
Side note: Does Viehbacher read BNET Pharma? He sure thinks the way we do. In this story in the FT, he is asked how he will remake his company:
He also argued that there would be further ”optimisation of resources”, but the company was “already at the top of the league table” when considering sales, general and administrative costs as a proportion of revenues.
That’s just what we said yesterday!
- See BNET’s previous coverage of Sanofi:
- Sanofi CEO Viehbacher Wants More Cuts; Drug Reps’ Necks on the Block
- The Sanofi-Bristol-Myers Squibb Worst-Case Scenario
- Should Sanofi-Aventis Buy Bristol Myers-Squibb?
- Several Hundred Sanofi Reps Get the Ax
- Sanofi Names D-Day for Layoffs: Dec. 1
- Sanofi Reps’ Morale Hits New Low as Layoff Rumors Circulate
- New CEO Veihbacher, Plucked From the U.S., Could De-Frenchify Sanofi
- Sanofi Gets the Tax Breaks It Wanted in Vaccine HQ Deal
- Why Can’t Sanofi Get That Zentiva Deal Done?
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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