Sanofi – Investing in healthcare
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Sanofi reported positive results for Q418 beating on revenue and earnings when compared to our estimates and consensus. Revenues last year were led higher by Sanofi’s Genzyme biotechnology unit, were growth was up 37.4 per cent, driven by its immunology anSanofi – Investing in healthcare
Sanofi reported positive results for Q418 beating on revenue and earnings when compared to our estimates and consensus. Revenues last year were led higher by Sanofi’s Genzyme biotechnology unit, were growth was up 37.4 per cent, driven by its immunology and rare blood disorder franchises. We updated our model on the stock and maintain our overweight recommendation and price target at €95 per share. We like Sanofi because in 2018, management restructured its business to position itself for a return to growth, notably agreeing a €1.9 billion sale of its European generics business and making two biotech acquisitions, Bioverativ and Ablynx, to build a rare blood disorder franchise. The company also started to see benefit from its cost saving initiatives which we expect Sanofi to benefit from in the coming year. In 2019 we expect sales to continue to increase as management continues focusing on increasing sales from Libtayo, its late entrant in the checkpoint inhibitor category, which was approved for cutaneous squamous cell carcinoma in the US last September. Management also left the possibility open for growth through acquisitions in 2019 in strategic areas. We also expect margins... Read more