Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. AstraZeneca PLC
  6. News
  7. Summary
    AZN   GB0009895292


Delayed Quote. Delayed London Stock Exchange - 09/24 11:35:14 am
8845 GBX   +2.04%
01:15pHealth Care Stocks Retreat Friday
12:19pEurostoxx 50 : European stocks slip on Evergrande woes, weak German business morale
11:21aEuropean ADRs Move Lower in Friday Trading
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Analysis-Sanofi's COVID-19 vaccine setback, drug pipeline cast long shadow

08/05/2021 | 06:43am EDT
FILE PHOTO: Paul Hudson, CEO of Sanofi, delivers a speech at the French drugmaker's vaccine unit Sanofi Pasteur plant near Lyon

PARIS (Reuters) - Pharmaceutical company Sanofi remains under pressure to launch new drugs and overcome setbacks in the COVID-19 vaccine race, despite a $3.2 billion deal to tighten its grip on promising mRNA technology.

On Tuesday, Sanofi agreed to buy U.S. partner Translate Bio as it bets on next-generation vaccines and particularly as the French drugmaker, one of the world's top flu vaccine makers, seeks to see off competition in one of its major markets.

The two companies have been partnering since 2018 and are developing a COVID-19 mRNA shot together that has entered clinical trials, as well as an influenza jab.

The messenger RNA (ribonucleic acid) approach, an area of Translate Bio expertise, instructs human cells to make specific proteins that produce an immune response to a given disease.

The technology has proven to be successful in COVID-19 vaccines developed by Pfizer/BioNTech and Moderna.

"Although the platform of Translate Bio is not yet proven, it is a smart move by Sanofi," Wimal Kapadia, an analyst with Bernstein said. "Bringing the asset in-house will allow them to move quicker."

The transaction, backed by the U.S. company's largest shareholder, is expected to close in the third quarter. It follows Sanofi's acquisition of another, smaller, mRNA player, Tidal Therapeutics, in April.

But analysts cautioned it won't be enough to ease pressure on chief executive Paul Hudson to revive the company's drug pipeline with a blockbuster product and boost the share price.

Sanofi's shares barely moved on the news on Tuesday and fell to near three-month lows on Wednesday.

"The key for this stock to work is convincing the market that you know how to develop drugs. And bringing in another company or another technology does not really reflect that, and there is a lot of frustration with the stock," Kapadia said.

The stock has risen just 1% since the start of the pandemic in March last year while rivals in the COVID-19 vaccine race, Pfizer, Johnson & Johnson and AstraZeneca have seen double-digit percentage growth of 43%, 29% and 22% respectively. (Graphic: Sanofi shares have lagged rivals during pandemic, https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkqgqbvx/sanofi.PNG)


In 2018, the company hired a former Roche executive, John Reed, to revamp its research and development operations.

Sanofi said last month it expects several pipeline milestones in the second half, including pivotal trial readouts for Amcenestrant, a breast cancer treatment, and Sarclisa for multiple myeloma.

That was followed by Hudson's appointment almost two years ago to reduce the group's focus to fewer but faster-growing segments such as cancer and reduce dependence on Dupixent, its star eczema and asthma treatment that has been leading its growth.

"The CEO is clearly going in the right direction and the Translate Bio deal highlights that," a Sanofi investor speaking on the condition of anonymity told Reuters.

"But Hudson's tenure was rapidly overshadowed by the coronavirus pandemic and snags with the (COVID-19) vaccine," the investor said, referring to delays developing another COVID-19 shot with Britain's GlaxoSmithKline.

"Now, we will want to see Sanofi be bolder when it comes to deals if we look at the group's profile in the longer term."

That means looking beyond 2025, analysts said.

Martial Descoutures, an analyst with Oddo BFH, said Sanofi's growth profile was well established until then, with Dupixent expected to make ever greater contributions to profits and exceeding 10 billion euros ($11.89 billion) in peak sales.

"(But) we do need more visibility in the longer term. Right now, the pipeline is the main issue."

($1 = 0.8410 euros)

(Reporting by Matthias Blamont; Editing by Josephine Mason and Elaine Hardcastle)

By Matthias Blamont

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ASTRAZENECA PLC 2.04% 8845 Delayed Quote.18.35%
GLAXOSMITHKLINE PLC -1.84% 1388 Delayed Quote.5.37%
MODERNA, INC. -5.38% 430.14 Delayed Quote.335.15%
ROCHE HOLDING AG -0.64% 340.4 Delayed Quote.10.87%
SANOFI -1.01% 82.02 Real-time Quote.5.29%
TRANSLATE BIO, INC. -0.13% 37.36 End-of-day quote.0.00%
All news about ASTRAZENECA PLC
01:15pHealth Care Stocks Retreat Friday
12:19pEurostoxx 50 : European stocks slip on Evergrande woes, weak German business morale
11:21aEuropean ADRs Move Lower in Friday Trading
10:06aASTRAZENECA : Receives a Buy rating from Barclays
09:21aWall Street Tumbles Pre-Bell, Evergrande Risks Resurface
09:15aHealth Care Stocks Slip Pre-Bell Friday
08:59aIMPERIAL COLLEGE LONDON : Imperial RNA technology to be developed by VaxEquity with AstraZ..
08:26aDEPARTMENT OF HEALTH AND SOCIAL CARE : check the rules for travel to England from abroad
07:35aASTRAZENECA : Lynparza in combination with abiraterone significantly delayed disease progr..
06:46aASTRAZENECA : LYNPARZA« (olaparib) in combination with abiraterone significantly delayed d..
More news
Analyst Recommendations on ASTRAZENECA PLC
More recommendations
Financials (USD)
Sales 2021 35 401 M - -
Net income 2021 5 006 M - -
Net Debt 2021 24 250 M - -
P/E ratio 2021 33,3x
Yield 2021 2,37%
Capitalization 188 B 187 B -
EV / Sales 2021 6,00x
EV / Sales 2022 4,86x
Nbr of Employees 76 100
Free-Float 96,3%
Duration : Period :
AstraZeneca PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ASTRAZENECA PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 27
Last Close Price 118,94 $
Average target price 136,24 $
Spread / Average Target 14,5%
EPS Revisions
Managers and Directors
Pascal Soriot Chief Executive Officer & Executive Director
Aradhana Sarin Chief Financial Officer & Executive Director
Leif Valdemar Johansson Non-Executive Chairman
Menelas NICOLAS Pangalos EVP-Biopharmaceuticals Research & Development
Pam P. Cheng Executive VP-Operations & Information Technology
Sector and Competitors
1st jan.Capi. (M$)
ASTRAZENECA PLC18.35%184 418
JOHNSON & JOHNSON4.75%433 991
ROCHE HOLDING AG10.87%324 441
PFIZER, INC.19.40%247 760
NOVO NORDISK A/S51.58%233 750