Sanofi shares fall as company says sees no meaningful profit for next two years

French drug major Sanofi (Euronext: SAN) on Friday said it does not expect any meaningful bottom line growth over 2016-2017 due to the investments in launches, headwinds in diabetes and the phasing of cost savings, as it announced its strategic plan through 2020.

Shares in the company dropped 5.5%% to 88.14 euros by mid-afternoon trade.

The company said it will explore strategic options for its animal health and European generics businesses. In animal health, Merial has successfully returned to strong growth over the past six quarters and is currently one of the most profitable companies in its sector. Nevertheless synergies are limited with other Sanofi businesses. The company said it will also look at strategic options for generics in Europe where geographic synergies are limited and market complexity is increasing.