Sanofi did not make sparks on the Paris Stock Exchange this year. The French health giant has not been unworthy, however, overall. “It delivered satisfactory financial performance and implemented cost optimization programs,” notes Stephan Dubosq, manager at Kirao Asset Management. However, Sanofi, expected at the turn on anti-Covid-19 vaccination as a benchmark player in the vaccine, was disappointed. The laboratory was rammed by Moderna and Pfizer BioNTech, who first released a messenger RNA (mRNA) vaccine, while its vaccine candidate developed with GSK (of a more traditional technology) experienced delays.
And, above all, the pipeline Sanofi’s new products in the making raises questions. “In particular, clinical results are awaited on a candidate oral treatment against breast cancer. In the event of a favorable outcome, this drug would have the potential to generate several billion dollars in annual sales ”, underlines Stephan Dubosq. Dupixent, a drug against atopic dermatitis and moderate to severe asthma, “constitutes a blockbuster able to generate an annual turnover of more than 10 billion dollars in the medium term. In addition, programs on multiple sclerosis (MS) and hemophilia are underway ”says the analyst.
>> To read also – Sanofi strengthens its position in immunology with the biotech Kymab
While the threat posed by generic drugs had weighed in its time on the stock market price of Sanofi, “this risk has now for the most part disappeared”, judge Stephan Dubosq. In addition, Sanofi’s influenza vaccine also appears to be less threatened, the dedicated messenger RNA vaccine developed by Moderna having recently given results deemed inconclusive.
Currently, Sanofi shares appear inexpensive and attractive. The current stock price includes a dark scenario on the pipeline of products in gestation. Thus, in the event of an unfavorable scenario, the downside potential of the Sanofi share appears limited, while conversely, the theoretical appreciation potential seems significant in the medium and long terms.
>> Our service – Save money by testing our Health Insurance comparator
How to take advantage of the opportunities offered by the stock market?
Discover numerous analyzes (technical, financial and economic) in Momentum, Capital’s premium newsletter on the Stock Exchange. Scenarios (on stocks, indices, gold, cryptocurrencies, currencies…), the essentials of the news to remember… Every day, at 12:30 pm, in your e-mail box for only 6.90 euros per month. And right now, with the promo code CAPITAL30J, enjoy a month of free trial. To subscribe, just click on the link below.
>> Buy and sell your investments (stocks, cryptocurrencies, gold…) at the right time thanks to Momentum, Capital’s newsletter on technical analysis. And right now, with the promo code CAPITAL30J, enjoy a month of free trial.