...Negative Outlook: The revision of the Outlook of December 2016 reflects Fitch Ratings' belief that Sanofi SA's financial leverage, cash generation and liquidity will be affected by the company's plan to increase shareholder returns and pursue M&A. Meanwhile, sales and margins are under pressure from generic competition and increasing price sensitivity across the industry. The rating reflects Sanofi's solid market position as a leading, diversified player in the global pharmaceutical industry, which we believe will continue to benefit from economies of scale in the field of R&D, marketing and distribution, and in its dealings with regulators. The rating is also underpinned by significant financial flexibility and its available strategic options such as asset disposals to protect its balance sheet. The development of the financial risk profile will ultimately depend on the timing and structure of any anticipated corporate activity, especially if larger in size than expected. Increase in Business...
