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Sanofi's (SNY) Dupixent & Vaccines Make the Stock Attractive
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French drugmaker Sanofi (SNY - Free Report) possesses a diversified product portfolio with a presence in several therapeutic areas, including multiple sclerosis, cardiovascular diseases, diabetes, oncology, immunology, among others. Sanofi has also been progressing well with product launches.
Here we discuss some reasons why investors consider betting on SNY stock.
Sanofi’s immunology medicine, Dupixent, has become the key top-line driver. Dupixent is being jointly marketed by Regeneron (REGN - Free Report) 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 the global sales of the drug.
Dupixent is now annualizing close to €9.0 billion in sales after around five years on the market. Sanofi expects Dupixent to achieve more than €13 billion in peak sales. Dupixent is now approved in the United States for five type II inflammatory diseases, namely severe chronic rhinosinusitis with nasal polyposis, severe asthma, moderate-to-severe atopic dermatitis, eosinophilic esophagitis and prurigo nodularis. 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, its sales are expected to be higher.
Sanofi stock has declined 3.1% this year so far compared with the industry’s increase of 12.5%.
Image Source: Zacks Investment Research
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 has shifted its R&D focus on Specialty Care therapy areas (oncology, immunology, rare disease and rare blood disorder) and Vaccines. Its programs in these areas have increased significantly since 2017. In the last three years, Sanofi has doubled the number of New Molecular Entity across key areas in immunology, oncology, neurology and vaccines.
Several data readouts are expected in 2023. Sanofi has also launched several new drugs in the past couple of years. Nexviazyme (avalglucosidase alfa) for the treatment of late-onset Pompe disease, a rare degenerative muscle disorder; Enjaymo (sutimlimab-jome) for hemolysis in adult patients with cold agglutinin disease, a rare blood disorder, and Xenpozyme/olipudase alfa for acid sphingomyelinase deficiency/ Niemann-Pick B disease were approved in 2022. Beyfortus, its respiratory syncytial virus or RSV vaccine, was approved in Europe this year for infants and is under review in the United States. Sanofi expects FDA decisions on Beyfortus and Altuviiio/efanesoctocog alfa (hemophilia A) next year.
Sanofi is also expanding its pipeline through M&A deals. The Principia acquisition in 2020 added BTK inhibitors like tolebrutinib and rilzabrutinib to its pipeline, which can address a variety of serious illnesses. The acquisition of Translate Bio in September 2021 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, to Sanofi’s portfolio.
Conclusion
Sanofi faces its share of headwinds, including the weak performance of diabetes drugs and generic competition for many drugs. Also, macroeconomic headwinds such as increased costs of energy, transportation, as well as labor costs are hurting margins. The impact of volume-based procurement in China is also expected to hurt gross margins. Nonetheless, the strong performance of Dupixent, above-market sales growth of the Consumer unit, consistent pipeline innovation and regular accretive collaboration deals should keep the stock afloat in 2023.
Other Stocks to Consider
Some other stocks worth considering are Syndax Pharmaceuticals (SNDX - Free Report) are Kamada , both with a Zacks Rank #1.
Syndax Pharmaceuticals’ loss per share estimates for 2022 have narrowed from $2.68 per share to $2.52, while that for 2023 has improved from $3.10 per share to $2.65 per share the past 60 days. Syndax’s stock is up 11% in the year-to-date period.
Syndax beat earnings expectations in three of the trailing four quarters. The company delivered a four-quarter earnings surprise of 95.39%, on average.
In the past 60 days, estimates for Kamada’s 2022 loss per share have narrowed from 14 cents to 7 cents. During the same period, the earnings estimates per share for 2023 have risen from 26 cents to 42 cents. Shares of Kamada have declined 40.4% in the year-to-date period.
Earnings of Kamada beat estimates in two of the last four quarters and missed the mark twice, delivering a negative earnings surprise of 62.50%, on average.
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Sanofi's (SNY) Dupixent & Vaccines Make the Stock Attractive
French drugmaker Sanofi (SNY - Free Report) possesses a diversified product portfolio with a presence in several therapeutic areas, including multiple sclerosis, cardiovascular diseases, diabetes, oncology, immunology, among others. Sanofi has also been progressing well with product launches.
The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here we discuss some reasons why investors consider betting on SNY stock.
Sanofi’s immunology medicine, Dupixent, has become the key top-line driver. Dupixent is being jointly marketed by Regeneron (REGN - Free Report) 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 the global sales of the drug.
Dupixent is now annualizing close to €9.0 billion in sales after around five years on the market. Sanofi expects Dupixent to achieve more than €13 billion in peak sales. Dupixent is now approved in the United States for five type II inflammatory diseases, namely severe chronic rhinosinusitis with nasal polyposis, severe asthma, moderate-to-severe atopic dermatitis, eosinophilic esophagitis and prurigo nodularis. 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, its sales are expected to be higher.
Sanofi stock has declined 3.1% this year so far compared with the industry’s increase of 12.5%.
Image Source: Zacks Investment Research
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 has shifted its R&D focus on Specialty Care therapy areas (oncology, immunology, rare disease and rare blood disorder) and Vaccines. Its programs in these areas have increased significantly since 2017. In the last three years, Sanofi has doubled the number of New Molecular Entity across key areas in immunology, oncology, neurology and vaccines.
Several data readouts are expected in 2023. Sanofi has also launched several new drugs in the past couple of years. Nexviazyme (avalglucosidase alfa) for the treatment of late-onset Pompe disease, a rare degenerative muscle disorder; Enjaymo (sutimlimab-jome) for hemolysis in adult patients with cold agglutinin disease, a rare blood disorder, and Xenpozyme/olipudase alfa for acid sphingomyelinase deficiency/ Niemann-Pick B disease were approved in 2022. Beyfortus, its respiratory syncytial virus or RSV vaccine, was approved in Europe this year for infants and is under review in the United States. Sanofi expects FDA decisions on Beyfortus and Altuviiio/efanesoctocog alfa (hemophilia A) next year.
Sanofi is also expanding its pipeline through M&A deals. The Principia acquisition in 2020 added BTK inhibitors like tolebrutinib and rilzabrutinib to its pipeline, which can address a variety of serious illnesses. The acquisition of Translate Bio in September 2021 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, to Sanofi’s portfolio.
Conclusion
Sanofi faces its share of headwinds, including the weak performance of diabetes drugs and generic competition for many drugs. Also, macroeconomic headwinds such as increased costs of energy, transportation, as well as labor costs are hurting margins. The impact of volume-based procurement in China is also expected to hurt gross margins. Nonetheless, the strong performance of Dupixent, above-market sales growth of the Consumer unit, consistent pipeline innovation and regular accretive collaboration deals should keep the stock afloat in 2023.
Other Stocks to Consider
Some other stocks worth considering are Syndax Pharmaceuticals (SNDX - Free Report) are Kamada , both with a Zacks Rank #1.
Syndax Pharmaceuticals’ loss per share estimates for 2022 have narrowed from $2.68 per share to $2.52, while that for 2023 has improved from $3.10 per share to $2.65 per share the past 60 days. Syndax’s stock is up 11% in the year-to-date period.
Syndax beat earnings expectations in three of the trailing four quarters. The company delivered a four-quarter earnings surprise of 95.39%, on average.
In the past 60 days, estimates for Kamada’s 2022 loss per share have narrowed from 14 cents to 7 cents. During the same period, the earnings estimates per share for 2023 have risen from 26 cents to 42 cents. Shares of Kamada have declined 40.4% in the year-to-date period.
Earnings of Kamada beat estimates in two of the last four quarters and missed the mark twice, delivering a negative earnings surprise of 62.50%, on average.