Although the deal prima facie looks unfavourable at 0.56x of EV/sales (| 262 crore realisation for a revenue of | 470 crore (17% of overall revenues), we expect a positive rub-off on the margins front, going ahead. As per the management's own assertion, the deal will lead to extended focus on its core branded formulations business that typically fetches better margins vis-vis third party exports. Despite this deal, the overall thesis for Sanofi remains unaltered as one of the fastest growing companies in India in antidiabetic therapy. It has launched Toujeo within just three years of its launch in the US, which suggests that it is prepared to launch core innovative products in India, banking on growth prospects in the anti-diabetic category....