Sanofi Group Announces Strategic Objectives in Oncology

  •   05/06/2020 - 11h15
  •   HARMANT Adeline

While the French group Sanofi has just revealed what its strategy would be in the oncology field in the treatment of four major types of cancer and through 4 flagship products that can really transform the medical care of patients, we offer some advice on how to take a position on this stock market.

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Sanofi Group Announces Strategic Objectives in Oncology
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Sanofi's progress and strategy in oncology in detail :

The Sanofi Group has therefore communicated its strategy in four specific areas of oncology with multiple myeloma and skin, lung and breast cancers. To this end, it is highlighting four of its most advanced products including Sarclisa, Libtayo and two other drugs that are still in the experimental stage and well on the way to development.

In today's press release, Sanofi's Chief Executive Officer Paul Hudson said: "The execution of our oncology strategy is rapidly gaining momentum with several advances in both our development pipeline and our marketed medicines.»

These announcements were relayed by the group at ASCO 2020 through an oncology research and development conference.


How is the company reacting to this stock market announcement?

Following this interesting and optimistic announcement from the French pharmaceutical group, several analysts have spoken out in favour of an increase in the share price on the stock market. Crédit Suisse thus reiterates its opinion regarding the outperformance of this stock and its price target of 105 euros for this share, indicating that Sanofi remains a preferred stock in this sector of activity, notably due to its low annual valuation and improved profitability. It should be noted that the new management of the group seems to be concentrating its resources on research and development and marketing.

Credit Suisse also indicates that the growth coming from Duxipent and vaccines over the coming years will undoubtedly give Sanofi's management time to complete its transition to internal growth drivers rather than focusing on partnership assets.

It should also be noted that Sanofi has announced that it has closed the sale of its 13 million shares of Regeneron common stock by way of a public offering at $515 per share while the over-allotment option has been fully exercised by the coordinating banks.

Following this event, the Group's management will therefore remain focused on achieving EPS growth of around 5% for the year 2020. According to Oddo, this agreement is opportunistic for both parties given the strong performance of Regeneron's share price since the beginning of this year 2020 with an increase of 52%.

The Sanofi share thus remains a value to be favoured in these times of uncertainty on the European stock markets.