SAN FP

Sanofi SA

Healthcare


Presented:08/13/2020
Price:€86.99
Cap:$121.72B
Current Price:€100.66
Cap:$140.54B

Presented

Date08/13/2020
Price€86.99
Market Cap$121.72B
Ent Value$137.21B
P/E Ratio9.78x
Book Value€50.50
Div Yield3.62%
Shares O/S1,256.35M
Ave Daily Vol2,396,142
Short IntN/A

Current

Price€100.66
Market Cap$140.54B
Sanofi engages in the research, production, and distribution of pharmaceutical products. It operates through the following business segments: Pharmaceuticals, Consumer Healthcare, and Vaccines. The Pharmaceuticals segment comprises the commercial operations of the following global franchises: specialty care, diabetes and cardiovascular, established prescription products and generics, and research, development, and production activities. The Consumer Healthcare segment includes the commercial operations for its Consumer Healthcare products. The Vaccines segment consists commercial operations of Sanofi Pasteur. The company was founded in 1973 and is headquartered in Paris, France.

Publicly traded companies mentioned herein: GlaxoSmithKline PLC (GSK), Novartis AG (NVS), Peugeot SA (UG FP), Regeneron Pharmaceuticals Inc (REGN), Sanofi SA (SAN FP; SNY)

Highlights

The presenter is long shares of Sanofi (SNY) following its management shakeup and sale of its Regeneron stake (>20% interest valued at nearly $13B). With the local shares in the mid-€80s (ADR in the low $50s), he thinks the valuation (13x ‘21 estimates) is cheap and attractive. Dupixent (dupilumab; approved for atopic dermatitis) and influenza vaccine growth, as well as SNY’s inevitable involvement in global manufacturing/supply of COVID-19 vaccines, should combine to drive upside for patient shareholders over the next 12+ months. If his assessment of the setup is accurate, Sanofi should outperform Street estimates looking out to 2022 and beyond. Assuming the multiple improves to a fairer 17x - 18x, the stock would be worth €120+.

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Idea Discussion

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