Company Reports

Sanofi's wide lineup of branded drugs and vaccines and robust pipeline creates strong cash flows and a narrow economic moat.

Sanofi reported second-quarter net sales growth of 18% and business EPS growth of 33% at constant currencies, fueled by Dupixent's outstanding performance. Management updated full-year guidance to around 10% sales growth and slightly faster business EPS growth. Sanofi's Paris-listed shares fell 9%.

Sanofi's wide lineup of branded drugs and vaccines and robust pipeline creates strong cash flows and a narrow economic moat.

Sanofi reported net sales growth of 14% and business EPS growth of 14% at constant currencies. Management affirmed its guidance for high-single-digit sales growth and slightly faster business EPS growth. Shares are about 1% higher than the previous day's close.

Sanofi's wide lineup of branded drugs and vaccines and robust pipeline creates strong cash flows and a narrow economic moat.

Sanofi reported net sales growth for the quarter of 13% at constant currency exchange rates and business earnings per share growth of 27%. Management gave guidance of high-single-digit growth in net sales for 2026 and slightly faster growth in business EPS.

Sanofi reported net sales growth of 7% at constant currency and business earnings per share growth of 13%. Despite lower flu vaccine sales, Dupixent and Altuviiio continued to drive growth, and management reiterated its full-year guidance of low-double-digit business EPS growth.

Sanofi's wide lineup of branded drugs and vaccines and robust pipeline create strong cash flows and a narrow economic moat. Growth of existing products and new product launches should help offset upcoming patent losses.

Sanofi reported second-quarter net sales growth of 10.1% at constant currency and business earnings per share growth of 8.3%, largely driven by Dupixent and Altuviiio. It raised full-year guidance for revenue growth to high single digits and reiterated its EPS growth target of low double digits.

We have taken a fresh look at our economic moat rating for Sanofi after reassessing our outlook for the company's returns on invested capital over the next 10 years.

Sanofi's wide lineup of branded drugs and vaccines and robust pipeline create strong cash flows and a narrow economic moat. Growth of existing products and new product launches should help offset upcoming patent losses.

Sanofi has entered into an agreement to acquire Blueprint Medicines for $129 per share, or about $9.1 billion. Additional contingent value rights bring the total potential deal value to $9.5 billion. Blueprint is a commercial-stage biotech company focused on mast-cell-driven diseases.

Itepekimab met its primary efficacy endpoint in AERIFY-1 for treating former smokers with chronic obstructive pulmonary disease, or COPD, but it failed to meet the same endpoint in AERIFY-2. The companies are currently assessing the data to decide next steps.

President Trump released an executive order on May 12 calling for a 30-day negotiation period between the Department of Health and Human Services and the biopharma industry, with the threat of a rule from the Centers for Medicare and Medicaid Services to lower US drug prices if no deal is reached.

Sanofi reported net sales growth of 9.7% at constant currency and business earnings per share growth of 15.7%, largely driven by Dupixent and Altuviiio. It reiterated its previous full-year guidance and announced it had completed 72% of its planned EUR 5 billion of share repurchases.

Sanofi's wide lineup of branded drugs and vaccines and robust pipeline create strong cash flows and a wide economic moat. Growth of existing products and new product launches should help offset upcoming patent losses.

On Feb. 13, the Senate voted 52-48 to confirm Robert F. Kennedy Jr. as secretary of Health and Human Services. This follows a 14-13 party-line vote on Feb. 4 in the Senate Finance Committee, where Republican Sen. Bill Cassidy cast the deciding yes vote despite concerns about Kennedy's vaccine views.

Wide-moat Sanofi’s fourth-quarter results and 2025 guidance were in line with expectations. The company also announced a share buyback program of EUR 5 billion and proposed to increase its dividend to EUR 3.92 per share, a more than 4% increase, which we view as incrementally positive. The outlook for 2025 looks attractive given lack of major loss of exclusivity events, foreign exchange tailwinds, and the potential for significant pipeline news flow. We maintain our fair values of EUR 117 per ordinary share and $63 per US ADR.

No-moat Teva announced that the phase 2b study for duvakitug met its primary efficacy endpoints in Crohn’s disease and ulcerative colitis. It reported the highest placebo-adjusted efficacy data so far in Phase 2 trials among the TL1A drug class. For Teva, we raise our fair value estimate to $24 per share from $21 after raising our sales forecast for the drug. For wide-moat Sanofi, its commercial partner, we maintain our fair value estimates of EUR 117 and $63 for the ordinary shares and ADRs. We think this is a positive development, but given Sanofi’s size, adding this asset to our model does not significantly affect our valuation.

Following President-elect Donald Trump’s Nov. 14 announcement of the nomination of Robert F. Kennedy Jr. as secretary of the US Department of Health and Human Services, there have seen several more nominations for leadership in the 13 HHS divisions, including Dr. Mehmet Oz (Centers for Medicare and Medicaid Services) on Nov. 19, Dr. Marty Makary (US Food and Drug Administration) and Dr. Dave Weldon (Centers for Disease Control and Prevention) on Nov. 22, and Dr. Jay Bhattacharya (National Institutes of Health) on Nov. 26. Overall, we think these selections show a consistent theme of introducing potential disruptive forces to US healthcare, although their lack of experience and the power of career staffers in these agencies could serve to blunt any significant proposed changes. We continue to see obesity drugs and vaccines as areas of potential scrutiny, although without any clarity on proposals, we’re not making any changes to our fair value estimates following these announcements.