Back to top

Analyst Blog

Recently, Sanofi (SNY - Analyst Report) successfully conducted a bond market transaction, thereby issuing notes worth €1 billion. Sanofi intends to utilize the proceeds from the transaction for general corporate purposes and refinancing debt.

Sanofi has offered €1 billion notes carrying an annualized interest rate of 1.875%. The notes will be due in 2020.

Apart from the bond issue, Sanofi was in the news recently when its oral drug Aubagio 14 mg, gained approval from the European Commission (EC). The EC approved Aubagio as a once-daily treatment for adults suffering from relapsing remitting multiple sclerosis.

The approval did not come as a surprise as the European Medicines Agency's Committee for Medicinal Products for Human Use had recommended the approval of Aubagio in Mar 2013.

We note that Aubagio is currently marketed in the U.S. as a once-daily treatment for patients with relapsing forms of multiple sclerosis. Aubagio is under review in several other countries. In the second quarter of 2013, Aubagio generated sales of €33 million as compared to €20 million in the first quarter of 2013. We believe that Aubagio possesses significant commercialization opportunity.

Sanofi carries a Zacks Rank #4 (Sell). We are concerned about generic erosion confronting most of Sanofi’s key drugs. Additionally, recent pipeline failures (oncology candidate -  iniparib and anticoagulant - otamixaban) have put immense pressure on Sanofi’s pipeline.

Companies that currently look well-positioned include Actelion Ltd. (ALIOF) and Gilead Sciences Inc. (GILD - Analyst Report) with a Zacks Rank #1 (Strong Buy) and Jazz Pharmaceuticals (JAZZ - Analyst Report) with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%