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Sanofi (SNY) to Create Dedicated Vaccine Center in France

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Sanofi (SNY - Free Report) announced that it will create a new production site and research center in France with both dedicated to vaccines at a planned investment of €610 million ($688 million). The company stated that its investment plans are aligned with its corporate strategy presented last December.

The company will invest almost €490 million over the next five years to create the Evolutive Vaccine Facility, a state-of-the-art industrial site, which will utilize the latest innovative vaccine production technologies. The company the new manufacturing unit to create 200 jobs at this center. This site will also enable Sanofi to produce three to four vaccines simultaneously, compared to only one at current industrial sites.

Sanofi has also committed to create a new research and production center at its Sanofi Pasteur site to develop future vaccines at an investment of €120 million.

These investments will strengthen Sanofi’s leadership and capacity to advance its research of new innovative vaccines and produce them on a massive scale. These will also provide flexibility and agility needed to quickly respond to future pandemic risks.

We note that Sanofi had irked France’s government earlier this year by hinting that U.S. patients might get first access to its coronavirus vaccine, if successfully developed, as the United States had provided funding for the development. However, the company changed its opinion later following a backlash and stated that it supports equitable access to a coronavirus vaccine, globally.

These investments will also likely help improve Sanofi’s relationship with the French government authorities.

Shares of the company have increased 1.7% year to date against the industry’s decline of 5.3%.

Meanwhile, the company is also committed to bring a treatment and a vaccine for the coronavirus pandemic, which has infected more than seven million people across the globe. Sanofi has collaborated with another big European pharma company, GlaxoSmithKline (GSK - Free Report) to accelerate the development of a novel vaccine to fight COVID-19. Together, the companies are planning to develop an adjuvant vaccine using Sanofi recombinant DNA technology and Glaxo’s proven pandemic adjuvant technology.

Sanofi entered into a collaboration with Translate Bio (TBIO - Free Report) in March to develop a mRNA-based vaccine for COVID-19. The company, along with its partner Regeneron Pharmaceuticals (REGN - Free Report) , is also evaluating their arthritis drug, Kevzara, in a phase II/III study as a treatment for hospitalized patients with severe COVID-19 infection.

In April, the company signed an agreement with Luminostics, a California-based technology startup for developing a smartphone-based self-testing solution that can detect coronavirus.

In a separate press release, Sanofi announced the presentation of data from a phase III study evaluating its enzyme replacement therapy (“ERT”), avalglucosidase alfa, as a treatment for late-onset Pompe disease (“LOPD”). Data showed that the ERT candidate achieved clinically meaningful improvement in critical manifestations of LOPD. Data showed that the candidate is non-inferior to current standard-of-care, alglucosidase alfa, in improving respiratory function.

These data will support a regulatory filing seeking approval for avalglucosidase alfa as a treatment for LOPD, which is expected in the second half of 2020.

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Sanofi Price

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Zacks Rank

Sanofi currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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