Sanofi disappoints market with poor quarter results

Sanofi pharmaceutical group has disappointed its shareholders and investors with Q1 results below expectations, and its shares have lost 1.7% (Paris). The France-based group delivered revenues of €7.9bn over the first three months of the year, with €1bn net income, which is below Q1 2017, when sales were €8.0bn and earnings were €1.4bn. Like many other European drugmakers, Sanofi has struggled due to the dollar’s weakening–which had been predicted by all analysts. Instead, the market has been surprised by the Diabetes and cardiovascular diseases arm dropping by 15.7% (at constant exchange rates), especially because generics have taken market share away from the diabetes blockbuster Lantus. Positive results have come from Genzyme, whose acquisition was strongly supported by former CEO Christopher Viehrbacher. The asset doesn’t stop its growth, with sales rising 16%. The significant acquisitions of Bioverativ ($11.6bn) and  Ablynx (€3.9bn) performed over the last few months, have not had any effect on results yet.  Importantly, Sanofi some days ago announced it had started exclusive talks with Advent International in order to sell Zentiva, worth approximately €1.9bn.

(Source: Les Echos)