GCVRZ - Sanofi: Q1 Earnings Reflect Growth And Strategic Acquisitions (Rating Upgrade)

2024-04-30 11:30:18 ET

Summary

• Sanofi beat Q1 earnings estimates with revenue at $11.36 billion and EPS at 97 cents, driven largely by Dupixent.
• Key drugs like Nexviazyme and Altuviiio showed strong performance, with the former doubling its revenue.
• Despite a high profitability margin, Sanofi’s growth lags the sector, with a concerning -15.25% Y/Y EBITDA growth.
• Investment recommendation: Buy Sanofi due to its moderate risk and potential upside, but maintain portfolio diversification.

Sanofi's Q1 Financial Results and Drug Portfolio Expansion

I last wrote on Sanofi ( SNY ) ( SNYNF ) after it acquired Inhibrx for $2.2 billion earlier this year. The deal centered around INBRX-101, a drug targeting the rare disease alpha-1 antitrypsin deficiency. I thought it was an appropriate fit for Sanofi. Moreover, their ample cash reserves could reasonably afford some M&A activity. Last week, the France-based company reported Q1 2024 earnings....

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