Sanofi (NYSE:SNY)
was supposed to be a relatively solid Big Pharma company in 2013. True,
the company is going through some pressures from patent expirations and
internal drug development issues have created a soft spot for growth,
but Sanofi's strong emerging market exposure was supposed to help, as
was the fact that about one-third of the company's revenue comes from
non-branded drug businesses.
Instead, Sanofi delivered a surprisingly large miss for the second
quarter, a miss that means a little more in the typically more
predictable Big Pharma space. While it may be true that problems in
Brazil were a large part of the reported miss, worse than expected
results in ex-Brazil emerging markets, vaccines, and animal health,
coupled with higher than expected SG&A
spending to support new launches, has reset expectations to a lower
level. Although Sanofi shares are not overvalued today and the company
could demonstrate fairly quickly that Q2 results were just an
aberration, it's harder to make a forceful pro-Sanofi argument today.
Please read the full article at Investopedia:
http://www.investopedia.com/stock-analysis/080613/can-sanofi-investors-just-blame-it-rio-sny-shpg-biib-amgn.aspx
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