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Sanofi's (SNY) Diabetes Drug Toujeo Lowers Hypoglycemia Risk

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Sanofi (SNY - Free Report) presented data from a real-world observational study, which showed that when type 2 diabetes patients on basal insulin switched to its diabetes drug Toujeo, it led to a significant reduction in risk of hypoglycemia without compromising blood sugar control. The study compared Toujeo (insulin glargine 300 Units/mL) with other basal insulins. The results were presented at the annual meeting of the Endocrine Society.

The study, DELIVER 2, observed the effects of Toujeo in real world clinical practice. The study analyzed medical records of 1894 patients in two matched groups for a change in average blood sugar levels and occurrence of hypoglycemia in patients after switching to Toujeo from another basal insulin. The study demonstrated that after six months of switching to Toujeo, the patients experienced a 33% drop in occurrence of hypoglycemic events compared to patients who switched to other basal insulins, without compromising blood sugar control.

Shares of Sanofi have risen 11.6% since the beginning of this year, outperforming the Zacks classified Large Cap Pharmaceuticals industry, which increased 6% in the same period.

Toujeo is now available in 45 countries and continues to perform well in key markets. Toujeo generated sales of €649 million in 2016 on the back of consistently strong performance in Europe and Japan. The comparative study of Toujeo from real world observations is expected to help payors and other organizations to better evaluate the drug for routine clinical practice.

However, Sanofi’s diabetes franchise is under significant pressure with key product, Lantus, facing increasing competitive pressure at the payor level and the presence of biosimilar competition in several European markets & Japan.

Zacks Rank & Key Picks

Sanofi currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Roche Holding AG (RHHBY - Free Report) , Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and Grifols, S.A. (GRFS - Free Report) . Each of these stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Roche’s earnings estimates have increased from $1.70 to $1.90 per share for 2017 and from $1.68 to $2.09 per share for 2018 over the last 60 days. The company’s shares rose 4.9% in the past one year.

Vertex’s earnings estimates have increased from 48 cents to 50 cents per share for 2017 and from $1.87 to $1.95 per share for 2018 over the last 60 days. Its share price increased 27.7% in the past one year.

Grifols’ earnings estimates have increased from $1.04 to $1.14 per share for 2017 over the last 60 days. The company’s shares rose 23.4% in the past one year.

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