Bitter pill to swallow: Margin worries ahead for Sanofi

Analysts believe the performance of the firm's domestic business has been lower than expected

The Sanofi stock has been on a downtrend since its highs in February, given the pressures on pricing in the domestic market. Analysts believe the performance of the pharmaceutical company’s domestic business has been lower than expected, because of price cuts and potential correction in the channel inventory.

The company has cut prices of one of its top brands Amaryl (and extensions), which is used in treating diabetes. 

Vishal Manchanda of Nirmal Bang Institutional Equities Research has revised his estimates for (calendar year) CY19 and CY20 lower due to potential price controls happening in some of its core assets and