Sanofi, AstraZeneca, Bristol-Myers Squibb, GlaxoSmithKline, Pfizer Date August 01, 2013
Sanofi brought the big pharma reporting season to an ignominious close today when it cut its guidance for the year and reported disappointing second-quarter figures. An embarrassing performance at its generics business in Brazil was largely to blame while patent losses and weak performances at several units also hit.
Sanofi’s setback – which sent the French drugmaker’s shares down 6.7% – stands out in a reporting season that has contained few big surprises. The patent cliff might be in the rear view mirror but several big pharma names are still dealing with generic erosion of huge products; elsewhere, the massive restructuring and cost containment programmes being implemented to preserve profit margins make for uneventful quarters. But Sanofi’s results, coming in the wake of Glaxo's troubles in China, show how emerging markets are becoming an ever more important influence on earnings, meaning investor scrutiny is only going to mount on these operations.
UNS Price at posting:
54.0¢ Sentiment: LT Buy Disclosure: Held
