Not as crazy as it sounds

Not as crazy as it sounds

There’s an old saying that states; “Better to be thought a fool then to open your mouth and remove all doubt.” Now Diabetic Investor doesn’t know Serge Weinberg the acting CEO of that soap opera known as Sanofi (NYSE:SNY) but it’s a pretty safe bet he hasn’t heard that saying before as once again he has inserted his foot firmly in his jaws. According to an article published in the German daily Handelsblatt, Mr. Weinberg states; “We want to have businesses like consumer healthcare, veterinary medicine and vaccines that are less strongly driven by innovation but grow continuously and are more stable.”

He also stated when asked how the search for the new CEO was going; “That is a very important decision that we do not want to rush. But it should not take another half year until we can announce a new CEO.” Really the CEO search is an important decision, wow thanks Serge we would have never known that.

What these latest statements tell Diabetic Investor is that Serge thinks he can run the company and it won’t be long before the interim tag is removed and he becomes the CEO. If this isn’t what he wants then why be so public about where the company should be going. Why be so public about which businesses the company should be in and which should disappear.

Diabetic Investor suspects should Serge remove the interim tag this will set off a series of events once unthinkable as it could be Sanofi selling their diabetes franchise to AstraZeneca (NYSE:AZN) rather than the other way around. Let’s be honest here the goose that lays the golden eggs for diabetes, Lantus is about to become a dead duck. Afrezza® is niche product which even if all goes as planned, and it never does, will take years to generate any real revenue. Toujeo® even if approved by the FDA, and there is no guarantee this will happen anytime soon, won’t come close to replacing the revenue Lantus generated, no way no how.

By the way did we mention that the sales team who’s supposed to be selling these new products was very publicly blasted by Serge? That it was Serge who blamed the poor results in diabetes on the sales team. That his comments made it very clear that this guy knows nothing about the diabetes market and even less about helping employee morale. Now we’re not sure how they do things in France but here in the states the CEO does not normally publicly bash the sales team for problems that were largely created by management and then expect these same sales people to be enthusiastic about selling new products which are mediocre at best.

One last item tells Diabetic Investor that diabetes franchise could end up on the block and it’s the only smart statement made by Serge as he noted in the article that Sanofi was not interested in acquiring Bayer’s diabetes device unit. Now we don’t want to be overly harsh here but the fact Serge said this shows how bad things have become in blood glucose monitoring and that it will be a miracle if Bayer comes even close to getting $2 billion for this unit.

Serge may not be the brightest blub on the Christmas tree and he may have a knack of opening his mouth while inserting his foot, but he at least understands that when it comes to Sanofi and diabetes other than Lantus it’s been a series of very public, very costly and very embarrassing failures. Don’t be surprised when he ultimately lowers the boom first on the sales team and then next on the franchise.

Let the revolution begin… Viva La France.