1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Sanofi reported solid first-quarter results, slightly above our expectations, but we don’t expect any major changes to our fair value estimate based on the minor outperformance. We continue to view the stock as undervalued with the market not fully appreciating the firm’s growth potential from currently marketed drugs and new pipeline products that also support the firm’s wide moat.
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, Dupixent, representing just over 10% of total sales, but profits are shared with Regeneron. About 30% of total revenue comes from the United States and 25% from Europe. Emerging markets represent the majority of the remainder of revenue.
