The French pharmaceutical company has shared a new strategy which outlines fresh targets and forcasts under its recently appointed CEO Paul Hudson. Below is a selection of comments.
0634 GMT - Sanofi's new strategy should draw positive market reactions, Citi analysts say. The French pharmaceutical company's new mid-term margin target of 32% suggests at least 15% upside to consensus expectations, Citi says. Commentary around the potential monetization of the consumer unit, which could potentially be worth EUR26 billion to EUR32 billion according to Citi, will also be taken well and highlights the company's significant balance sheet flexibility, the bank says. (email@example.com)
0954 GMT - Sanofi shares are buoyant on Tuesday morning after the company shared new chief executive Paul Hudson's fresh strategy. It set ambitious margin targets, gave a bullish forecast for its star drug Dupixent and said it would give up on hunting for new drugs in the challenging areas of diabetes and cardiovascular medicine. It also hinted at a possible separation of its consumer healthcare business with plans to make it a standalone unit within Sanofi. Shares in the company are up 4.6% at EUR 85.60. (firstname.lastname@example.org ; @deniseroland)
1049 GMT - French pharmaceutical company Sanofi is looking to exceed consensus expectations under the new targets unveiled by its recently-arrived chief executive Paul Hudson, say analysts at Bank of America Merrill Lynch. They say that the targets on sales, margins and savings imply a 2025 earnings per share more than 10% higher than the bank's estimates. De-emphasis on the diabetes and cardiovascular portfolio, a possible divestment of the Regeneron stake, as well as greater independence for the consumer unit all provide further positive momentum, BAML adds. (email@example.com; @carlomartu)
1059 GMT - The decision to make Sanofi's Consumer Healthcare unit a standalone business within the organization implies the division is being prepared for an exit from the company, Bryan Garnier's Jean-Jacques Le Fur says. The bank values the business at close to EUR25 billion, five times estimated 2020 sales. Le Fur says that the targets set out by new CEO Paul Hudson are ambitious, aiming for a 2022 operating margin of 30%, which is above the bank's 28.5% forecast. Shares rise 13% to EUR85.72. (firstname.lastname@example.org; @carlomartu)
1134 GMT - French pharmaceutical company Sanofi has set itself an aggressive, EUR10 billion peak sales target for Dupixent, an injected treatment for eczema and asthma, says UBS, noting that the figure is well above consensus forecasts of EUR7.1 billion in 2026. "This is exciting but sets the bar high and we expect investors will want to understand how this breaks down and when it might be reached," says the bank. "Other assets are identified as priorities, although some (fitusiran, BIVV001, venglustat) have already been scrutinised and we expect the focus to be on what might emerge from the proposed acquisition of Synthorx (focussed on immuno-oncology) for $2.5 [billion], announced earlier yesterday." Shares trade 13% higher. (email@example.com; @carlomartu)