Analysis N°1

Since the Sanofi group operates in the health sector, you should monitor the development of life expectancy and the main health problems which can generate additional income.

Analysis N°2

Sanofi's partnerships can also provide some leads about Sanofi's development and growth possibilities, and in particular with regard to partnerships with bio-technology and research companies.

Analysis N°3

The Sanofi group obviously faces strong competition from other large pharmaceutical companies around the world. Particularly the generic drugs market which could disfavour the company.

Analysis N°4

In that respect, patents filed by the group following the launch of new products and the end dates of these patents should also be monitored.

Analysis N°5

The policies of medical treatment and reimbursement of medicines by the different countries in which Sanofi sells its products also have an impact on the group's sales.

Analysis N°6

Finally, monitoring the regulations concerning the approval of medicines worldwide which may increase or reduce the sales of Sanofi is also important.

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The pharmaceutical industry and the large groups that are part of it are often in high demand by stock market investors who want to acquire securities to integrate into their stock market portfolio. In this sense, Sanofi Aventis stocks are undoubtedly one of the most popular assets in this sector. Check out some advice and an analysis of its listing.  

 

General presentation of the Sanofi Company:

The Sanofi group is the European leader in the pharmaceutical industry. Its activity affects various sectors of activity related to pharmaceutics such as the production of pharmaceuticals and generic drugs which represents almost 85.1% of the group's turnover along with the production of human vaccines or even veterinary products with almost 14.9% of turnover.

Due to more than 75 production centres around the world, the group supplies both Europe with 27.4% of its revenue along with the United States with nearly 33.5% of its turnover, Japan with 5% of its turnover, Asia with 11.5%, Latin America with  7.6%, Africa and the Middle East with  6.5% and the rest of the world with  8.5%.

 

Knowing Sanofi shares competition:

The Sanofi group has been one of the leaders in pharmaceutical research and production in the world for several years now. Particularly in the vaccine market and in emerging markets and has recorded a significant increase in its turnover in the diabetes sector. However, despite this relative financial stability, it faces very strong competition from other big names in this sector. A complete and conclusive study of the Sanofi share requires sound knowledge of the company's direct competition as well as a comparative of the results of the different companies concerned. Here's a list of Sanofi's main competitors on the international market:

 

The strategic alliances set up by the Sanofi group:

For many years, Sanofi has forged strategic partnerships with various companies engaged in activities related or not to its own. Here are the main alliances of the Sanofi group and its main partners.

 

Introduction and stock quote of the Sanofi share:

The Sanofi share price owes its developments to innovations and other controversies that affect the world of drug or vaccine production. Therefore, it's easy to quickly obtain information on the up and down trend possibilities.

It is also important to follow the group's financial activity very closely.

In addition to a full technical analysis of this value, it's also necessary to use a maximum of external fundamental indicators such as data from the pharmaceutical market in general with, among other things, a complete analysis of the competition for this activity.

 

Stock market data

To understand all of the issues affecting Sanofi's share on the stock market, please check out some overall data about this security and its position on the stock market.

 

Economic history

 

The advantages and strengths of the Sanofi share as a stock market asset :

First of all, the Sanofi group benefits from a very interesting positioning in its sector of activity. Indeed, Sanofi is none other than the fourth largest pharmaceutical group in the world. At the European level, its positioning is even more interesting since it is the leader in its sector. It should also be recalled here that Sanofi is currently the world leader in vaccines.

Another important strength of the Sanofi share is the very likely growth of the pharmaceuticals sector over the coming years. This anticipated growth is based on a number of different factors and structural factors.

The good distribution of the Sanofi Group's various activities is also a real strength. Indeed, the group generates 31% of its revenues from established products, 20.5% from diabetes treatments, 9.5% from consumer health products, 10% from products for the treatment of rare diseases, 5% from generics, 4% from oncology treatments, 13% from vaccines and 7% from veterinary health products. As a result, the company does not present a significant risk in any single health area and can offset some of its losses in other markets.

From a geographical point of view, the Sanofi Group has also succeeded in positioning itself strategically. This is particularly the case with its positioning in emerging markets, which account for 33% of the Group's sales, of which only 12% are in Asia and which are currently growing rapidly. The United States market accounts for 36% of sales and Western Europe accounts for only 22% of sales.

Analysts specializing in this market also stress the importance of the strategy implemented by the Sanofi Group, which has already proved its worth. Indeed, the company is focusing on reducing its dependence on a few key compounds. In this way, it is tending to reduce the impact of patents and the rise of generic drugs, which have been causing problems for many laboratories for several years now.

We can also appreciate the fact that the Sanofi Group is on the way to becoming one of the major names in healthcare for the general public worldwide with its range of non-prescription medicines. To this end, it has decided to sell its veterinary health division to the German company Boerhinger Ingelheim in exchange for the purchase of the Lysopaïne, Dulcolax and Surbronc brands, which are marketed worldwide. This decision is an intelligent way of positioning itself in this future-oriented segment.

Stock market investors and shareholders also appreciate the visibility this company offers on its future growth. The group announces the release of new drugs in advance. To remain one of the leaders in its sector, Sanofi can also count on its many innovations. Indeed, investments in research and development should reach 6 billion euros by 2020.

Finally, the Sanofi Group has the advantage of having very significant cash resources, i.e. more than 8 billion euros, which enables it to regularly launch share buyback programs with very attractive payouts to its shareholders.

 

The disadvantages and weaknesses of Sanofi shares as a stock market asset :

First of all, and despite the many efforts made by the Group and its diversification strategy, the rise of generic drugs continues to be detrimental to the Group. Indeed, competition in this segment is becoming increasingly intense and aggressive, particularly with regard to certain very popular products. This competition results in a loss of patents for the company and has a significant impact on its profitability.

On the other hand, while the medical and healthcare sector is still booming, it is also a very difficult sector from a certain point of view. Indeed, companies in this sector, such as Sanofi, have to cope with pressure from the public health authorities and therefore have to cut costs drastically, which of course leads to a loss of revenue. Again because of the authorities, these groups are increasingly facing very restrictive regulatory barriers that can slow down their growth and development.

In the US market, the group is currently suffering numerous losses following the launch of the generic drug Lilly, which directly competes with its treatment Lantus. As a result, Lantus is increasingly excluded from the list of treatments reimbursed by insurance companies. In addition, and still in the United States, the group has to bear the negative consequences of the delay in marketing its anti-diabetic injection pen.

The year 2017 has not helped to restore investor confidence either. For three quarters in a row, Sanofi experienced a significant drop in sales outside the veterinary health sector. As a result of these disappointing results, the Group has also lowered some of its targets. This applies in particular to diabetes treatment products, but also to generics.

More generally, and to conclude with the negative points of the Sanofi group, it should be noted that profits showed lower growth than those of its competitors. In 2017, the group announced that the return to profitability expansion would be postponed to 2018.

Frequently Asked Questions

What is the origin of the Sanofi group?

It was in September 1973 that the history of Sanofi began when Elf Aquitaine decided to set up a subsidiary in the hygiene and health sector under the name of Omnium Financier Aquitaine for Hygiene and Health . The company was then made up of 10 people and served as a start-up funded by the French group thanks to an endowment of more than 500 million francs. It is this company which, after having developed, will become the Sanofi group.

What is the market capitalization amount of the Sanofi group?

Currently in 2020, the total market capitalization of the Sanofi group reaches 112.9 billion euros. It is one of the largest market capitalizations on the French stock market. It should also be noted that Sanofi's turnover for the last accounting year for 2019 was 32.126 billion euros. This turnover has been increasing in recent years.

Where to invest in the Sanofi share?

While many investors use stock market investment products to acquire shares in the Sanofi group, others favor live trading and use online trading platforms for this purpose. These platforms make it possible to speculate upwards or downwards on the price of this value thanks to CFD contracts or contracts on the difference and which concern numerous French and international stock market shares.

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Trade the Sanofi share!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.