Both sides of the coin for Sanofi
Some
interesting recent news in France about Sanofi, which use to be called Sanofi-Aventis,
came out today. As we have seen in the past, the people in France like to
protest. “Workers at Sanofi (SAN) had a message for politicians at protests in
Paris this month: Job cuts by the nation’s biggest drugmaker are crushing
morale among researchers and hurting the company’s ability to develop new
products (http://www.biospace.com/News/genzyme-corporations-rd-culture-pushes-sanofi/267846)
.”
I wonder if it is going to have an effect on what happens to the company?
The chief Executive Officer Chris Viehbacher was not persuaded by those
arguments. After purchasing Genzyme Corp.
for $20.1 billion last year, the CEO was inspired to refashion Sanofi in the
Cambridge, Massachusetts-based company’s image, a project he is pursuing at
full bore. Scientists are now organized as hubs, in the hopes that scientists
will be more open and share their ideas with one another. In the new
headquarters in Paris, he has had coffee bars installed for workers to mingle. He chose Genzyme executives to run the Boston
R&D hub and Sanofi’s U.S. business development. His daughter is even
interning at Genzyme. Sounds like he is keeping it all in the family,
huh….
Besides
the disgruntled employees in France, the FDA has also brought some charges
against Sanofi too that they posted on July 12th on their website.
There appears to be mold problems in several of Sanofi’s plants located both in
Canada and France. The drug TheraCys BCG
Live is produced in the Canadian plant and because of these issues has created
a shortage of the drug. The FDA has requested renovations at the Canadian
plant. (http://www.biospace.com/News/fda-to-meet-sanofi-france-execs-over-violations-at/267717)
What does this mean
for the stock, SNYNF:OTCQB?
Overall
its performance has been up a little over 7% for the year. It doesn’t appear
that any analyst is following the stock? OR at least none that is evident on
the Scottrade website. The stock has ranged from 62.30 in September of 2011 to
78.45 in July of 2011. Presently the stock is at 74.05, which is just bobbing
below the high for the stock.
If
I was going to take a guess, I would say that the stock is going to go down on
the news that I have provided above. However, if some new drugs or advancement
comes out of Sanofi, then I think the stock will go up a bit. However, from
what I see it doesn’t seem like it is going to go up much higher for now.
Check
out the chart and the news, and let me know what you think!?
