Sanofi: Lantus upgraded - Sanofi open to further acquisitions in Regeneron shares
BUY, Fair Value EUR80 vs. EUR79 (+12%)
Two pieces of news impacted Sanofi yesterday. First was the read-across from Novo-Nordisk’s setback in the US with Tresiba. The Danish company has been asked by the FDA to undertake a cardiovascular outcomes trial before the drug can be deemed approvable which is likely to delay its entry into the US market by three years, much to the benefit of the current standard, Lantus. As a consequence we have significantly increased our 2013-15 growth rates for Lantus resulting in a positive impact of EUR1/share to our FV. Second, Sanofi notified Regeneron that it could buy shares on the market whereas it had been prevented from doing so, with an upper limit of 30%, as described in a joint agreement.
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