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UPDATE 2-Sanofi shares drop after warning of no profit growth for two years

(Adds share price drop, analyst comment)

By Matthias Blamont and Noëlle Mennella

Nov 6 (Reuters) - Sanofi said on Friday investment in products to compensate for declining diabetes sales and cost cuts would prevent any meaningful profit growth in the next two years, as it unveiled its strategic plan through 2020.

Shares in Sanofi fell as much as 5.4 percent in early trading, the biggest losers on the French blue-chip CAC 40 index, wiping about 6 billion euros ($6.5 billion) off the value of France's biggest listed company.

The drugmaker said it aimed to take out some 1.5 billion euros of costs by 2018, after which earnings per share would start to grow faster than sales. It also planned to raise annual research and development spending to 6 billion euros by 2020, up from 4.8 billion in 2014.

"As a result of investments in launches, headwinds in diabetes and the phasing of cost savings, Sanofi does not expect to show any meaningful bottom-line growth over...