The carnage has begun

The carnage has begun

Diabetic Investor has leaned that our wine drinking friends in France have sharpened the guillotine and has begun mass beheading to their diabetes and cardiovascular sales team. Per sources inside Sanofi (NYSE: SNY) 20% of the combined sales teams will be beheaded. No word yet as to whether these beheadings will go beyond sales reps and extend to any members of management who created this mess in the first place.

Frankly this news should not come as a shock and quite frankly we’re surprised it took so long for Olivier and our good buddy Serge to begin the process. This move is just further confirmation of something else we already knew, when it comes to diabetes Sanofi is becoming a minor player without much chance of ever regaining their mojo.

As we say often when it comes to any diabetes product not named Lantus, Sanofi has a horrendous track record. Yes, there was a time when it looked like the company would capitalize on the huge success of Lantus and transform themselves into a complete diabetes company. That they would not be a one hit wonder but a real diabetes company. Things didn’t exactly turn out that way. This once highly profitable franchise has now become an albatross around the company’s neck.

To his credit, Olivier did tell everyone cuts where coming, he knew that with Lantus getting its ass kicked by Basaglar and Toujeo sales not picked up the slack there was no other choice. He knew that the recently approved LixiLan is already facing competition and even if they knew what they were doing, which they don’t, it would be tough to gain share.

The real question is what does this mean for the much-ballyhooed partnership with Google, a partnership that cost the company $250 million. A partnership which to date has done nothing more than generate press releases.  We suspect that this partnership will turn out like every other Sanofi diabetes partnership all sizzle and no steak. Listen we can’t blame the folks at Google for taking Sanofi’s money. As Momma Kliff used to say; “If you find someone desperate enough or stupid enough to give you money that you don’t really need TAKE IT.”

Folks it’s time to acknowledge the obvious diabetes is back to a two-horse race between Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO), the Sanofi horse is headed for the glue factory. It was a good ride while it lasted but the ride is over.