8/14/2019 Research and Development Sanofi-Aventis

1/36

Research and

DevelopmentSanofi-Aventis

BS4+ + + +Danil Eric Karim Andrew Da

vid

8/14/2019 Research and Development Sanofi-Aventis

2/36

&W h a t is R D fo r yo u ?

8/14/2019 Research and Development Sanofi-Aventis

3/36

Telecom

8/14/2019 Research and Development Sanofi-Aventis

4/36

Pharmacy

8/14/2019 Research and Development Sanofi-Aventis

5/36

armaintenance

8/14/2019 Research and Development Sanofi-Aventis

6/36

Construction

8/14/2019 Research and Development Sanofi-Aventis

7/36

Agriculture

8/14/2019 Research and Development Sanofi-Aventis

8/36

&Main R D ratios in Accounting

8/14/2019 Research and Development Sanofi-Aventis

9/36

R&D Intensity R&D expenses / Sales

R&D per employee R&D expenses / N of employees

R&D growth rate R&D expenses Year 2/ R&D expenses Year 1

8/14/2019 Research and Development Sanofi-Aventis

10/36, , &Lev and Sougiannis 1996 Studies Outcome for US

&R D

investments

Market

Value

8/14/2019 Research and Development Sanofi-Aventis

11/36

&D Intensityor differentbusinesses

& R D Scorecard UK DT

8/14/2019 Research and Development Sanofi-Aventis

12/36

Sanofi-Aventis

Case Study

8/14/2019 Research and Development Sanofi-Aventis

13/36

Sanofi

FrenchPharmacy

ounded in976 byElfumber ofacquisitions

8/14/2019 Research and Development Sanofi-Aventis

14/36

Sanofi

2001

6488

(1253)

5235

(1031)(2306)

208

2106

(68)

102

2140

281(842)

1579

14

(7)

1586

(1)

1585

15,9%

8/14/2019 Research and Development Sanofi-Aventis

15/36

Aventis

FrenchPharmacyTherapeutiproteins

ounded1999

8/14/2019 Research and Development Sanofi-Aventis

16/36

Aventis

Aventis

Net sales

Co-promotionincome

Productioncosts andexpenses

Selling, general andadministrativecosts andother operatingincoResearchanddevelopment

Restructuringexpenses

Goodwill amortization

Operatingincome

Equityinearnings of affiliatedcompanies

Interest (expense) incomenetMiscellaneous non-operatingincomeandexpenses net

Incomebeforetaxes andminorityinterests

Provisionfor incometaxes

Minorityinterests

Preferredremuneration

Net income

8/14/2019 Research and Development Sanofi-Aventis

17/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001

Sanofi

8/14/2019 Research and Development Sanofi-Aventis

18/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001 2002

6448

( )1253%16

Sanofi

8/14/2019 Research and Development Sanofi-Aventis

19/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001 2002 2003

6448

( )1253%16

7448

( )1378%16%18

Sanofi

8/14/2019 Research and Development Sanofi-Aventis

20/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001 2002 2003

6448

( )1253%16

7448

( )1378%16%18

2004

8048

( )1428%16%8

Sanofi

8/14/2019 Research and Development Sanofi-Aventis

21/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001 2002 2003

6448

( )1253%16

7448

( )1378%16%18

2004

8048

( )1428%16%8

2001

Sanofi

Aventis

8/14/2019 Research and Development Sanofi-Aventis

22/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001 2002 2003

6448

( )1253%16

7448

( )1378%16%18

2004

8048

( )1428%16%8

2002 2001

22941( )3481

%15

Net Sales&R D expenses&R D

intensity&R D growth

Sanofi

Aventis

8/14/2019 Research and Development Sanofi-Aventis

23/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001 2002 2003

6448

( )1253%16

7448

( )1378%16%18

2004

8048

( )1428%16%8

2003 2002 2001

20622( )3420

%17- %2

22941( )3481

%15

Net Sales&R D expenses&R D

intensity&R D growth

Sanofi

Aventis

8/14/2019 Research and Development Sanofi-Aventis

24/36

Net Sales

&R D expenses&R Dintensity&R D growth

2001 2002 2003

6448

( )1253%16

7448

( )1378%16%18

2004

8048

( )1428%16%8

2003 2002 2001

20622( )3420

%17- %2

22941( )3481

%15

2004

17815( )2924

%16- %15

Net Sales&R D expenses&R D

intensity&R D growth

Sanofi

Aventis

8/14/2019 Research and Development Sanofi-Aventis

25/36

8/14/2019 Research and Development Sanofi-Aventis

26/36

-anofi AventisSanofi-Aventis

Net sales

Cost ofgoodssold

Grossprofit

Researchanddevelopment expenses

Sellingandgeneral expenses

Other operatingincome/(expense), net

Operatingprofit

Amortizationandimpairment ofintangibles

Financial income/(expense), net

Incomebeforetaxandexceptional items

Exceptional items

Incometaxes

Net incomebeforeincomefromequityinvestees, goodwill amortizationandi

Incomefromequityinvestees, net

Goodwill amortization

Net incomebeforeminorityinterests

Minorityinterests

Net income

8/14/2019 Research and Development Sanofi-Aventis

27/36

-anofi AventisNet Sales

&R D expenses&R D intensity

15043( )7455%0

8/14/2019 Research and Development Sanofi-Aventis

28/36

Net Sales

&R D expenses&R Dintensity

2001 2002 2003

6448

( )1253%16

7448

( )1378%16

2004

8048

( )1428%16

2003 2002 2001

20622( )3420

%17

22941( )3481

%15

2004

17815( )2924

%16

Net Sales&R D expenses&R D

intensity

15043( )7455%0

8/14/2019 Research and Development Sanofi-Aventis

29/36

8/14/2019 Research and Development Sanofi-Aventis

30/36

One Manager Banker2003

8048( )1428

%16

17815( )2924

%16

15043( )7455%0

2004

320pages

( . )thank you prof Capkun

8/14/2019 Research and Development Sanofi-Aventis

31/36

200320022001

20622( )3420

%17

22941( )3481

%15

2004

17815( )2924

%16

. ($5046)

&R D expenses

($2409)+

-anofi Aventisventis

&R D expenses

Net Sales

&R Dintensity

($ )45515043%0

8/14/2019 Research and Development Sanofi-Aventis

32/36

-anofi Aventis2004

Net Sales

&R D expenses&R D

intensity

15043

( )7455%0

2006 2007

28052

(4537)16%27568

(4575)16%

2008

28373

(4430)16%

8/14/2019 Research and Development Sanofi-Aventis

33/36

Class QUIZ

?

8/14/2019 Research and Development Sanofi-Aventis

34/36

Class QUIZ

? What are the three main ratio used in

&accounting for analysing R Dexpenditure?

&R D Intensity&R D per employee&R D growth rate

8/14/2019 Research and Development Sanofi-Aventis

35/36

Class QUIZ

?&Name three industries with high R D

.intensity

PharmacyElectronicsSoftware

8/14/2019 Research and Development Sanofi-Aventis

36/36