We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sanofi (SNY) Stock Outperforms Industry YTD: What Lies Ahead?
Read MoreHide Full Article
French drugmaker Sanofi’s (SNY - Free Report) stock has risen 8.1% this year so far compared with the industry’s increase of 5.4%. Here we discuss some factors driving the stock and its outlook for the future.
Image Source: Zacks Investment Research
Sanofi and partner Regeneron’s (REGN - Free Report) immunology medicine, Dupixent, has become the key top-line driver. Dupixent is now approved in the United States and the EU for three type II inflammatory diseases, namely severe chronic rhinosinusitis with nasal polyposis, severe asthma and moderate-to-severe atopic dermatitis in different patient populations. The frequent label expansion approvals are driving the drug’s sales higher. With outside U.S. revenues accelerating and multiple approvals for new indications and expansion in younger patient populations expected in the near future, its sales are expected to rise further. Sanofi expects Dupixent to achieve more than €10 billion in peak sales.
Dupixent is being jointly marketed by Regeneron and Sanofi under a global collaboration agreement. Sanofi records global net product sales of Dupixent while Regeneron records its share of profits/losses in connection with global sales of the drug.
Sanofi possesses one of the world’s leading vaccine operations, with total annual sales of more than €5 billion in the past five years. Its vaccine unit has become the primary top-line driver. Sanofi expects sales in its Vaccine unit to grow at a mid-to-high single-digit CAGR from 2018 to 2025.
Sanofi’s R&D pipeline is strong. Several data read-outs are expected in 2022.It has also launched several new drugs in the past couple of years. Some recent key drug approvals in the United States are Nexviazyme (avalglucosidase alfa) for the treatment of late-onset Pompe disease, a rare degenerative muscle disorder and Enjaymo (sutimlimab-jome) for hemolysis in adult patients with cold agglutinin disease (CAD), a rare blood disorder, in 2021.
Sanofi is also expanding its pipeline through M&A deals. In 2021, Sanofi announced six bolt-on acquisitions to strengthen its position in immunology, oncology and vaccines. The acquisition of Translate Bio in September 2021 has accelerated Sanofi’s efforts to develop transformative vaccines and therapies using mRNA technology. The Kadmon acquisition added Rezurock, Kadmon’s FDA-approved treatment for chronic graft-versus-host disease (cGVHD), to Sanofi’s portfolio.
Conclusion
Sanofi faces its share of headwinds, including a weak performance of the Diabetes unit and generic competition for many drugs. Meanwhile, COVID-19 has resulted in a slowdown in new patient starts of some drugs. Nonetheless, the strong performance of Dupixent, consistent pipeline innovation and regular accretive collaboration deals should keep the stock afloat in 2022 and thereafter.
Solid Biosciences’ stock has declined 36.5% this year. The consensus estimate for Solid Biosciences bottom line has narrowed from a loss of 77 cents to a loss of 72 cents per share, while that for 2023 has narrowed from a loss of 69 cents per share to a loss of 59 cents per share over the past 60 days.
Solid Biosciences beat estimates in the last four quarters, with the average negative surprise being 17.1%.
BELLUS Health’s stock has risen 0.8% this year. The Zacks Consensus Estimate for BELLUS Health’s 2022 bottom line has narrowed from a loss of 99 cents to loss of 77 cents per share, while that for 2023 has narrowed from a loss of $1.34 per share to a loss of $1.11 per share over the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Sanofi (SNY) Stock Outperforms Industry YTD: What Lies Ahead?
French drugmaker Sanofi’s (SNY - Free Report) stock has risen 8.1% this year so far compared with the industry’s increase of 5.4%. Here we discuss some factors driving the stock and its outlook for the future.
Image Source: Zacks Investment Research
Sanofi and partner Regeneron’s (REGN - Free Report) immunology medicine, Dupixent, has become the key top-line driver. Dupixent is now approved in the United States and the EU for three type II inflammatory diseases, namely severe chronic rhinosinusitis with nasal polyposis, severe asthma and moderate-to-severe atopic dermatitis in different patient populations. The frequent label expansion approvals are driving the drug’s sales higher. With outside U.S. revenues accelerating and multiple approvals for new indications and expansion in younger patient populations expected in the near future, its sales are expected to rise further. Sanofi expects Dupixent to achieve more than €10 billion in peak sales.
Dupixent is being jointly marketed by Regeneron and Sanofi under a global collaboration agreement. Sanofi records global net product sales of Dupixent while Regeneron records its share of profits/losses in connection with global sales of the drug.
Sanofi possesses one of the world’s leading vaccine operations, with total annual sales of more than €5 billion in the past five years. Its vaccine unit has become the primary top-line driver. Sanofi expects sales in its Vaccine unit to grow at a mid-to-high single-digit CAGR from 2018 to 2025.
Sanofi’s R&D pipeline is strong. Several data read-outs are expected in 2022.It has also launched several new drugs in the past couple of years. Some recent key drug approvals in the United States are Nexviazyme (avalglucosidase alfa) for the treatment of late-onset Pompe disease, a rare degenerative muscle disorder and Enjaymo (sutimlimab-jome) for hemolysis in adult patients with cold agglutinin disease (CAD), a rare blood disorder, in 2021.
Sanofi is also expanding its pipeline through M&A deals. In 2021, Sanofi announced six bolt-on acquisitions to strengthen its position in immunology, oncology and vaccines. The acquisition of Translate Bio in September 2021 has accelerated Sanofi’s efforts to develop transformative vaccines and therapies using mRNA technology. The Kadmon acquisition added Rezurock, Kadmon’s FDA-approved treatment for chronic graft-versus-host disease (cGVHD), to Sanofi’s portfolio.
Conclusion
Sanofi faces its share of headwinds, including a weak performance of the Diabetes unit and generic competition for many drugs. Meanwhile, COVID-19 has resulted in a slowdown in new patient starts of some drugs. Nonetheless, the strong performance of Dupixent, consistent pipeline innovation and regular accretive collaboration deals should keep the stock afloat in 2022 and thereafter.
Zacks Rank & Stocks to Consider
Sanofi currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the drug/biotech sector are Solid Biosciences (SLDB - Free Report) and BELLUS Health , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Solid Biosciences’ stock has declined 36.5% this year. The consensus estimate for Solid Biosciences bottom line has narrowed from a loss of 77 cents to a loss of 72 cents per share, while that for 2023 has narrowed from a loss of 69 cents per share to a loss of 59 cents per share over the past 60 days.
Solid Biosciences beat estimates in the last four quarters, with the average negative surprise being 17.1%.
BELLUS Health’s stock has risen 0.8% this year. The Zacks Consensus Estimate for BELLUS Health’s 2022 bottom line has narrowed from a loss of 99 cents to loss of 77 cents per share, while that for 2023 has narrowed from a loss of $1.34 per share to a loss of $1.11 per share over the past 60 days.