Sanofi SA (NASDAQ: SNY) discontinued the development of its oral SERD amcenestrant following a negative interim analysis of the AMEERA-5 trial in front-line ER+ metastatic breast cancer in combination with Pfizer Inc's (NYSE: PFE) Ibrance.
The analyst lowered the price target to $52 and maintained the Outperform rating.
SVB previously expected a 2025 launch for amcenestrant and estimated €1.6 billion 2030E sales. Removing amcenestrant did not change 2022-2023E revenue and EPS estimates.
Though 2025-2031E revenue estimates decreased by 0-3%, EPS estimates decreased by 1-7%.
The analyst says that after the recent partial clinical hold of tolebrutinib for multiple sclerosis due to liver tox risks, the amcenestrant discontinuation is negative for sentiment for the company's R&D productivity and topline growth prospects.
Price Action: SNY shares are down 7.10% at $41.63 on the last check Wednesday.
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