Sanofi may underperform in near term; pricing control among key risks

The stock of pharma multinational Sanofi India has been hitting fresh 52-week lows over the past fortnight, shedding about 10 per cent from its July highs. The weak operating performance in June quarter of the 2022-23 financial year (Q1FY23) has led to the recent decline and the stock may underperform in the near term.

Revenues in the June quarter were down 11 per cent year-on-year (YoY) and 1 per cent sequentially, to Rs 700 crore, and missed the Street expectations. The decline was largely on account of divestment of its nutraceutical business and a few key brands. The company had