For Sanofi, better days loom ahead

Price controls and note ban hit 2016 performance; sales volume growth to drive earnings

The year 2016 was challenging for Sanofi India, the drug maker known for its brands such as Combiflam, vaccines and diabetes portfolio. While the drug price control impacted the company’s performance in the early part of CY2016 (follows January-December accounting year), note ban weighed on its December quarter numbers. These have led to its stock price remaining under pressure. But, as the impact fades out, analysts expect the company to report a strong rebound in revenue, profitability and thereby stock price. That’s why they are now bullish on Sanofi. After the company reported its December quarter and financial year performance