Sanofi (NYSE:SNY) shares fell -3% today after the company posted its first-quarter results, missing estimates on Wall Street and revealing plans for a $1.5 billion share buyback program.
The Paris, France-based company saw sales decline -8.7% in the first three months of the fiscal year compared to 2017, landing at $9.55 billion for the quarter. Analysts on The Street were expecting sales of $9.67 billion.
Sanofi said that it was hit hard when it lost exclusivity for its insulin glargine injection, Lantus, in the U.S. Chief executive Olivier Brandicourt noted that Sanofi’s global operations enabled the company to navigate the pressure applied by rivals to its diabetes business.
“Importantly, we continue to execute on our business priorities and position the company for a new period of growth which is expected to begin in the second half of 2018,” he said in prepared remarks.
Sanofi’s diabetes business struggled last quarter, as well – U.S. sales were down nearly -30% in the fourth quarter of 2017 compared to the same period in 2016. The company is looking to reorganize its business, starting with its billion-dollar acquisitions of Bioverativ and Ablynx. Brandicourt noted in a statement that these purchases are the start of a “global rare disorder franchise.”
