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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Undervalued Sanofi Posts Solid Q1, Buoyed by Dupixent Gains While Pipeline Continues to Advance

Damien Conover, CFA Sector Director

Analyst Note

| Damien Conover, CFA |

Sanofi reported solid first-quarter results largely in line with our expectations, and we don’t expect any major change to our fair value estimate. The company continues to look undervalued with the market not likely fully appreciating the firm’s growth potential. Additionally, the growing pipeline along with the strong entrenchment and continued market share gains of immunology drug Dupixent (exclusivity for at least another decade) help reaffirm our wide moat rating for the company.

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Company Profile

Business Description

Sanofi develops and markets drugs with a concentration in oncology, immunology, cardiovascular disease, diabetes, and vaccines. However, the company's decision in late 2019 to pull back from the cardio-metabolic area will likely reduce the firm's footprint in this large therapeutic area. The company offers a diverse array of drugs with its highest revenue generator, Lantus, representing just under 8% of total sales. About 30% of total revenue comes from the United States and 25% from Europe. Emerging markets represent the majority of the remainder of revenue.

Contact
54, Rue La Boetie
Paris, 75008, France
T +33 153774000
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2021
Stock Type
Employees 99,412

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