French pharmaceutical giant Sanofi (NASDAQ: SNY) has long been a leader in the market for insulin. However, the company recently made two notable moves that could affect its trajectory in the broader diabetes care market. First, Sanofi was forced to decrease the price of its most prescribed insulin product after its only two real competitors in this area did something similar.
Second, Sanofi announced the acquisition of Provention Bio, a biotech focusing on developing medicines to delay or prevent the onset of autoimmune diseases, such as Type 1a diabetes. What do these moves mean for Sanofi's future?
Sanofi decided to decrease the price of its most prescribed insulin product, Lantus, by 78% and cap out-of-pocket costs at $35 for patients with commercial insurance. At first glance, this could be a major problem for the biotech giant. Lantus was one of the company's best-selling products last year, with total sales of 2.3 billion euros (about $2.5 billion). But there is more to the story.
Source Fool.com