$245 million for what?

$245 million for what?

It’s getting increasingly difficult to find new and creative words to describe just how inept our wine drinking in France have become. Friday the company issued a press release which stated;

“Sanofi announced today that it has submitted updated information on the pen delivery device as part of the New Drug Application (NDA) for the investigational once-daily fixed-ratio combination of basal insulin glargine 100 Units/mL and GLP-1 receptor agonist lixisenatide for the treatment of adults with type 2 diabetes. The additional information, submitted at FDA’s request, constitutes a Major Amendment to the NDA, resulting in an extension of the Prescription Drug User Fee Act (PDUFA) goal date by three months, to November 2016.

Now keep in mind that Sanofi (NYSE: SNY) spent $245 million using a priority review voucher for this drug.  $245 million for a drug which would NOT be first to market. $245 million for a drug which when available would come to market against a formidable competitor. $245 million for the right to compete against a company that actually knows what they are doing, Novo Nordisk (NYSE: NVO).

The way things are going at Sanofi we honestly believe that if they were handed the winning Powerball ticket it would end up in the shredder. As we noted earlier it is getting increasingly difficult to describe how badly management has managed this franchise.

Yet we have this feeling that they ain’t done yet. Keep in mind that Sanofi is partnered with Google, a partnership which based on all public statements is going nowhere in a hurry. A partnership which according to SEC documents cost Sanofi another $250 million.

We could go on and on here. We could list the many mistakes made by management. But why bother? Frankly this situation has gone well beyond embarrassing and progressed to the shameful stage. Yet knowing Sanofi as we do rather than admit they made mistake, rather than hold anyone accountable for this stupidity – or more accurately hold the correct people accountable – my good buddy Serge and his partner in crime Olivier will likely double down continuing to bet on the same losing horse.

We would say that we are astonished that Sanofi stakeholders are not in full blown revolt, demanding mass beheadings, but like management they seem to be clueless as the ship takes on more water.

Perhaps the silver lining here is when it comes to diabetes they are running out of things they can screw up.