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Sanofi (SNY) Closes Business Exchange Deal with Boehringer
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Sanofi (SNY - Free Report) announced the closing of a previously announced deal to exchange its Merial animal health business with Boehringer Ingelheim’s consumer healthcare (CHC) segment. The transaction was signed in Jun 2016.
Sanofi’s three-month share price movement shows that the stock has significantly outperformed the Zacks classified Large Cap Pharma industry. Specifically, the company gained 5.3%, while the industry lost 5.1%.
The Merial animal health business has an enterprise value of €11.4 billion, while the CHC segment is worth €6.7 billion.
Although the closing of the Boehringer’s acquisition of Merial in Mexico and the Merial-CHC swap in India were delayed due to the lack of certain regulatory approvals, both the transactions are expected to be completed by early 2017.
The deal would strengthen Sanofi’s presence in the German and Japanese CHC markets, which has been limited so far, and expand its presence in all of Boehringer Ingelheim’s priority categories. In addition, under Sanofi, the CHC business would be able to expand significantly across the U.S., Europe, Latin America and Eurasia, gaining leadership positions in key countries as well as product categories. Sanofi would gain rights to iconic brands like Antispasmodics, Gastrointestinal, VMS and Analgesics, apart from attaining critical mass in the Cough & Cold suite.
Notably, Germany will become a key center for the CHC business, particularly for the Gastrointestinal and Cough & Cold categories.
The deal will also provide numerous benefits to Boehringer Ingelheim. The combined portfolios and technology platforms of anti-parasitics, vaccines and pharmaceutical specialties will enable the company to foray into key growth markets, and offer higher value and innovation to its customers across the world.
On the whole, the deal made both Sanofi and Boehringer Ingelheim global leaders in two sectors of the pharmaceutical market.
Sanofi currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector include Arena Pharmaceuticals, Inc. , Cambrex Corp. and Kamada Ltd. . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arena’s earnings estimates declined from 36 cents to 34 cents for 2016 and from 33 cents to 32 cents for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 11.43%.
Cambrex’s earnings estimates increased from $2.46 to $2.55 for 2016 and from $2.91 to $3.06 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 19.78%. Its share price has increased 7.6% in the past one month.
Kamada’s loss estimates widened from 6 cents to 10 cents for 2016 over the last 60 days. The company has posted a positive earnings surprise in three of the four trailing quarters with an average beat of 31.25%.
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Sanofi (SNY) Closes Business Exchange Deal with Boehringer
Sanofi (SNY - Free Report) announced the closing of a previously announced deal to exchange its Merial animal health business with Boehringer Ingelheim’s consumer healthcare (CHC) segment. The transaction was signed in Jun 2016.
Sanofi’s three-month share price movement shows that the stock has significantly outperformed the Zacks classified Large Cap Pharma industry. Specifically, the company gained 5.3%, while the industry lost 5.1%.
The Merial animal health business has an enterprise value of €11.4 billion, while the CHC segment is worth €6.7 billion.
Although the closing of the Boehringer’s acquisition of Merial in Mexico and the Merial-CHC swap in India were delayed due to the lack of certain regulatory approvals, both the transactions are expected to be completed by early 2017.
The deal would strengthen Sanofi’s presence in the German and Japanese CHC markets, which has been limited so far, and expand its presence in all of Boehringer Ingelheim’s priority categories. In addition, under Sanofi, the CHC business would be able to expand significantly across the U.S., Europe, Latin America and Eurasia, gaining leadership positions in key countries as well as product categories. Sanofi would gain rights to iconic brands like Antispasmodics, Gastrointestinal, VMS and Analgesics, apart from attaining critical mass in the Cough & Cold suite.
Notably, Germany will become a key center for the CHC business, particularly for the Gastrointestinal and Cough & Cold categories.
The deal will also provide numerous benefits to Boehringer Ingelheim. The combined portfolios and technology platforms of anti-parasitics, vaccines and pharmaceutical specialties will enable the company to foray into key growth markets, and offer higher value and innovation to its customers across the world.
On the whole, the deal made both Sanofi and Boehringer Ingelheim global leaders in two sectors of the pharmaceutical market.
SANOFI-AVENTIS Price
SANOFI-AVENTIS Price | SANOFI-AVENTIS Quote
Zacks Rank & Key Picks
Sanofi currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector include Arena Pharmaceuticals, Inc. , Cambrex Corp. and Kamada Ltd. . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arena’s earnings estimates declined from 36 cents to 34 cents for 2016 and from 33 cents to 32 cents for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 11.43%.
Cambrex’s earnings estimates increased from $2.46 to $2.55 for 2016 and from $2.91 to $3.06 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 19.78%. Its share price has increased 7.6% in the past one month.
Kamada’s loss estimates widened from 6 cents to 10 cents for 2016 over the last 60 days. The company has posted a positive earnings surprise in three of the four trailing quarters with an average beat of 31.25%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>