Sanofi-aventis CFO announces plans to cut costs, reduce sales force

Sanofi-aventis CFO Jerome Contamine announced plans for further restructuring in order to offset a reduction in revenue due to healthcare reforms in Europe, Bloomberg reported on Wednesday. "The way to cope with that is to continue to cut costs," the executive said, adding: "We are restructuring. We are changing our marketing model. We are merging sales forces, we are reducing sales forces, having a multiproduct sales force."

In keeping with CEO Chris Viehbacher's plans to look to emerging markets for new income to offset a reduction in sales due to increased competition from generic drugs, Contamine noted that the drugmaker may undertake "another group of bolt-on acquisitions" in emerging markets. He added that "emerging markets [are] a volume market. What is important is to have the right brand. We don’t see any squeeze so far on the overall margin. We need to sell more volume."

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