U.S. Markets open in 4 hrs 49 mins

Sanofi Portfolio Update

Zacks Equity Research

Over the last few quarters, several products at Sanofi (SNY) including Aubagio, an oral treatment for relapsing forms of multiple sclerosis (:RMS) and Zaltrap for treatment-experienced patients suffering from metastatic colorectal cancer, have received approval.

Sanofi’s product portfolio was boosted further when the U.S. Food and Drug Administration (:FDA) approved Nasacort 24HR nasal spray. The drug was approved as an over-the-counter (:OTC) treatment for seasonal and other nasal allergies for use in children above 2 years and adults. Nasacort 24HR nasal spray will be available from the spring of 2014.

The approval came on the basis of encouraging data from 13 placebo-controlled efficacy studies, safety data from 43 studies and 16 years of post-marketing data of Nasacort AQ.

The approval did not come as a surprises as, in July, the FDA Nonprescription Drugs Advisory Committee (NDAC) had recommended (10-6) the approval of Nasacort AQ Nasal Spray.

Sanofi carries a Zacks Rank #4 (Sell). We are concerned about generic erosion confronting most of Sanofi’s key drugs including Lovenox, Aprovel, Taxotere, Eloxatin and Xatral. Generic competition affected sales in the second quarter 2013 by €481 million. Additionally, the company is facing increased genericization in Japan due to new policies. Generic competition will continue to have a negative impact on revenues in the coming quarters. Meanwhile, emerging markets, which accounted for 32% of Sanofi’s revenues, have been underperforming since the last four quarters.

Additionally, pipeline failures (oncology candidate -  iniparib and anticoagulant - otamixaban) have put immense pressure on Sanofi’s pipeline.

Currently, companies like Roche (RHHBY), Isis Pharmaceuticals, Inc. (ISIS) and Actelion Ltd. (ALIOF) look more attractive with a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on RHHBY
Read the Full Research Report on SNY
Read the Full Research Report on ISIS
Read the Full Research Report on ALIOF

Zacks Investment Research