WIth Sanofi riding the tail end of the latest earnings wave, its sales and profits shortfall feels like more of the same. It hasn't been a good quarter for Big Pharma, and Sanofi's results fall right in line with the rest. Its 5.3% sales drop was less severe than most, while its profits suffered a bit more, with a 34% decline.
If a drug brand is suddenly worth less, then pieces of that brand are worth less, too. Perhaps so much less that they're no longer worth the effort. That appears to be the rationale for Bristol-Myers Squibb and Sanofi's revamped agreement on the bloodthinner Plavix and blood-pressure remedy Avapro.
Sanofi had a good first quarter with higher revenues and profits, but executives acknowledge that the next 12 months will be tough.