Sanofi - Dupixent Profitability Set to Soar (BUY, TP EUR125 [120], 16pgs)
Dupixent is still not margin accretive despite selling €1bn in Q1 & €3.5bn in 2020. We show SAN/REGN are spending ~€2bn on S&M on Dupixent resulting in it being a 90bps drag on the margin in 2020 but will add 60bps by 2023 & 140bps by 2026. We again increase our flu estimates on the back of strong ex-US demand & better mix. We forecast 750bps of group margin expansion 2020-26 and are 14% ahead of consensus EBIT in 2025. At just 12x 2022 EPS, teens EPS growth next year and 11% EPS CAGR 2021-26, we view Sanofi as the most under-valued name in our large cap universe. High Conviction BUY.For access to the full note, please contact Naresh Chouhan ( )
Sanofi is an integrated, global healthcare company focused on patient needs and engaged in the research, development, manufacture and marketing of healthcare products. Two segments make up Co.'s business: Pharmaceuticals and Vaccines. The Pharmaceuticals segment covers research, development, production and marketing of medicines, consisting of flagship products, plus a broad range of prescription medicines, generic medicines, and consumer health products. The Vaccines segment includes research, development, production and marketing of vaccines in five areas: pediatric vaccines, influenza vaccines, adult and adolescent booster vaccines, meningitis vaccines, and travel and endemic vaccines.
Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.
New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:
- Pan European Telecom Services and Cable
- US Telecoms, Cable, Satellite and Towers
- Global Emerging Market Telecoms
- Japan Telecoms
- Asian Internet
- Pan European Healthcare
- Global healthcare thematic research
We provide debt research on:
- Pan European Telecom Services and Cable
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.