Good News for Undervalued Sanofi

The wide-moat drugmaker's cardiovascular drug, Praluent, which it has developed with Regeneron, enjoyed favorable results in a study.

Securities In This Article
Sanofi SA ADR
(SNY)
Regeneron Pharmaceuticals Inc
(REGN)

In the large Odyssey study, Praluent statistically significantly reduced the risk of MACE (the primary endpoint based on a composite of heart attack, ischemic stroke, death from coronary heart disease, or unstable angina requiring hospitalization) by 15% (similar to the benefit seen from Amgen’s Repatha in a different outcomes study of slightly less sick patients) with a strong p-value of 0.0003. The study also showed that Praluent caused a reduction in all-cause death. In the patient population with LDL cholesterol above 100 mg/dL, the reduction in all-cause death was an impressive 29%. Importantly, no significant safety signals were seen across the study of almost 19,000 patients. At the American College of Cardiology meeting, where the data was presented, 62% of the doctors surveyed stated they would change their prescribing habits because of the data.

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About the Author

Damien Conover, CFA

Director of Equity Research, North America
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Damien Conover, CFA, is director of equity research, North America, for Morningstar*.

Before joining Morningstar in 2007, Conover was an equity research analyst covering the healthcare sector for Raymond James, Bank of Montreal, and Tucker Anthony.

Conover holds bachelor’s and master’s degrees in finance from the University of Wisconsin and was a member of its Applied Security Analysis Program. He also holds the Chartered Financial Analyst® designation.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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