The gift that keeps on giving

The gift that keeps on giving

Given that it’s the end of the week and everyone is getting into the holiday spirit Diabetic Investor thought ok let’s give Serge Weinberg and the company now turned soap opera Sanofi (NYSE:SNY) a break. That was until we read that Serge, who’s becoming quite the media darling, noted that one of the reasons the company was having a difficult time finding a new CEO was France’s high tax rate.

Now we hate to state the obvious here but when a company is desperate to find a new CEO and with possible candidates taking themselves out of consideration, former Wyeth chief executive Bernard Poussot being the latest to drop out of the running, Frances high tax rate is the least of Sanofi’s worries. To put it another way think about Jon Lester who just signed a $155 million contract with the Chicago Cubs. Based on many reports the Cubs offered $20 million more than there closet competitor, the Boston Red Sox, to secure Mr. Lester’s services. Put bluntly high tax rate or not Sanofi is going to have pony up some mega bucks to get someone to take this job.

Diabetic Investor also learned some additional tidbits when we read the article from the German daily Handelsblatt and can be found at http://www.handelsblatt.com/unternehmen/industrie/sanofi-und-bayer-pharmariese-nicht-an-diabetes-sparte-interessiert/11100534.html.  Yesterday we actually gave Serge credit for publicly stating they would not once again make a play for Bayer’s diabetes device unit. We interpreted these comments to mean that Serge actually understood that the conventional blood glucose market was headed down the toilet and that Sanofi doesn’t exactly have a great track record in BGM.

As it turns out we were way too generous in our assessment of these comments as Serge followed up his comments about not buying Bayer with the comment that the company is thinking about integrating diabetes treatments with glucose monitoring. Now we don’t want to be overly harsh here but it’s about time that Serge understand that Sanofi is a pharmaceutical company and NOT a device company. That the way cool yet now way dead iBGStar is another example of way no pharmaceutical company, not just Sanofi, has no business playing in the diabetes device market.

Yet we have this feeling should Serge actually keep the diabetes franchise he would enter the world of interconnected diabetes management (IDM) and he would believe that in spite all evidence to the contrary that Sanofi could succeed in this area. That somehow Sanofi who has failed in everything diabetes related expect for Lantus will all of a sudden find religion.

Honestly Diabetic Investor can’t wait to attend the J P Morgan Healthcare Conference in early 2015 and listen not just to the Sanofi presentation but the Q&A session that follows. JPM always is a great conference providing some great copy but this upcoming conference could be one for the ages thanks to one man Serge Weinberg, the gift that keeps on giving.