Sanofi: New FV to adjust for new risk-free rate, LixiLan re-introduction and other smaller changes
BUY, Fair Value EUR92 vs. EUR84.5 (+9%)
We are adjusting our FV on Sanofi. This is the consequence of different inputs into our model: on the negative side, disappointing figures in Q1 led to some minor downward adjustments (OTC, generics, BG Star) for a total of -EUR1/share; on the positive side, three elements: further phase III trials of sarilumab influences our probability of success revised up to 60% (+EUR1/share), re-introduction of LixiLan into our model following the reassuring tone from Sanofi during the Q1 conference call (+EUR2.5/share net impact), new risk-free rate adopted at BG of 3% vs. 3.3% (+EUR5/share). It is supporting our continuous confidence into Sanofi, one of our Top Picks in Q2 2013.
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