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Hype Asset of the Day | December 12th, 2022


Sanofi (NASDAQ: SNY)

Sanofi S.A. is a French pharmaceutical and healthcare multinational with its headquarters in Paris. Sanofi develops over-the-counter medicines in addition to researching, developing, producing, and marketing pharmaceutical products, mainly for the prescription market. Seven key therapeutic areas are covered by the company: cardiovascular, central nervous system, diabetes, internal medicine, oncology, thrombosis, and vaccines (via its subsidiary Sanofi Pasteur, it is the largest vaccine producer in the world). Recently, Sanofi saw an increase in mentions by 114% since the company said it no longer intends to make an offer for biotech company Horizon Therapeutics PLC prompting investors to wonder whether they should take a position in the company now. Currently, shares of Sanofi trade at $46.97 per share.


Positive Hype

There are numerous reasons that Sanofi has generated positive hype recently, and here are some of them.


  • Last month, Sanofi and Regeneron's immunology mega-blockbuster, known as Dupixent, received some good news. The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion, that could result in more than $1 billion in annual sales potential to be split between Sanofi and Regeneron.


  • Considering Sanofi's $45.4 billion in revenue that analysts expect in 2022, an extra $500 million would be a 1.1% lift to its revenue base.


  • Sanofi has beaten analysts’ expectations both with regard to Earnings Per Share, which is $1.43 versus the consensus estimate of $1.31 and Revenue: $13.01 billion versus the consensus estimate of $12.02 billion.


  • Sanofi's pipeline has over 80 projects under clinical development, which is why analysts are predicting the company will deliver 12.3% annual earnings growth over the next five years.


  • Shares of Sanofi surged on Wednesday, adding more than $20 billion in combined value (with GSK) in early trade following the dismissal of thousands of U.S. lawsuits claiming that the heartburn drug Zantac caused cancer.


Negative Hype

No investment is perfect and Sanofi is no exception, here is one reason that the company has generated negative hype recently.


  • Sanofi has walked away from a four-year-old partnership with Revolution Medicines focused on an SHP2 inhibitor, intended as a combination with KRAS inhibitors, including Sanofi’s Mirati-partnered adagrasib.

Conclusion

With a combination of having successful products and solid financials, Sanofi is on track to do very well in the near future. Additionally, backing out of the bid for Horizon Therapeutics seems like a decision analysts and investors have favoured. Although Sanofi will be losing out on potential revenue from deals and partnerships they have backed out of, the company has more than enough products that are set to succeed that could cover up potential losses. Given that the price of shares has recently been rising, it might be a good time to take a position in the company before prices go up even further. If you’d like to receive more trending stocks straight to your inbox, check out our premium plans. Alternatively, if you’d like to hear more about the services offered by HypeIndex, you can check out our FAQ page.



HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.




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