Sanofi Earnings: Solid Dupixent Growth Offsets Mature Drug Declines and Generic Pressures

Sanofi posted first-quarter results largely in line with our projections, and we don’t expect any major changes to the firm’s fair value estimate. The stock looks undervalued with the market not fully appreciating the large potential cash flows driven by immunology drug Dupixent. Also, while the firm hasn’t been able to significantly improve its R&D track record, the recent successful development of Dupixent in COPD (chronic obstructive pulmonary disease) and the upcoming launches of hemophilia drug Altuviiio and RSV drug Beyfortus could mark a positive inflection point in productivity, reinforcing the firm’s wide moat.