Sanofi Might be Better Off Favoring Deals over Internal Drugs

Dow Jones07-30 15:42

0742 GMT - Sanofi's second-quarter results contain many changes after the arrival of a new CEO, but investors will likely focus on the company's plans for dealmaking and its internal research-and-development efforts, Intron Health's Naresh Chouhan and Dominic Rose say in a note. "A bunch of drugs were killed in R&D, hopefully Sanofi materially cut internal R&D in favour of external [business development], in our view," the analysts say. The French drugmaker raised its full-year guidance after Dupixent--a blockbuster anti-inflammatory drug jointly developed with Regeneron Pharmaceuticals--beat expectations for the second quarter, they add. Sanofi upgraded its 2030 sales estimates for Dupixent, but lowered guidance for its vaccines business, so the changes are slightly worse for its net present value, the analysts say. Shares fall 2.4%.

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