Potential for Sanofi, a health conglomerate in the CAC 40 index, following the stock market downturn?
Is Sanofi's Stock Worth the Gamble, With Headwinds Aimed at the CAC 40 Health Giant?
© Budrul Chukrut/SOPA Images/LightRocket via Getty Images By Nicolas Gallant Economics scribe, financial guru, technical wizard Published on
The flagship of the French healthcare sector has taken a substantial hit (-17%) on the Paris Stock Exchange since Sanofi, a CAC 40 titan, hit its peak on March 10, 2025. Yet, Sanofi stands resilient. Its first quarter 2025 results "were rather impressive, powered by the blockbuster Dupixent (treatment for atopic dermatitis, asthma, and so on, for the record) as well as the rise of Beyfortus (virus respiratory syncytial treatment, for the record)", remarks Stephan Dubosq, financial analyst in charge of the medical sector at Kirao Asset Management, according to our site.
Sanofi's quarterly results have topped the expectations of the financial community, thanks to the robust growth of Dupixent, vaccines, and a few other drugs, adds AlphaValue. Sanofi's management also maintained its 2025 projections. However, progress in the laboratory's pipeline has been mitigated in recent months, as "some hiccups can't be avoided", the research office notes.
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On May 7, 2025, all healthcare stocks were in the red. Sanofi was no exception to Donald Trump's wrath, who announced tariffs on the pharmaceutical sector within two weeks. He also advocates "a Medicaid reform (coverage for patients aged 18 to 64 with limited income and resources) with aligned prices for covered drugs with lower prices practiced abroad", according to Stephan Dubosq.
Also affecting Sanofi is the appointment of Vinay Prasad as director of FDA (U.S. health authority), responsible for vaccines, among other things. "Prasad has historically held unfavorable views on vaccine policies, including Covid-19. However, the importance of vaccines to Sanofi (since the sales generated by the dedicated division represent more than 20% of the laboratory's revenue)", highlights the analyst.
In the stock market, Sanofi's stock currently offers a growth opportunity, as per AlphaValue, which spots chances to buy the CAC 40 heavyweight in the face of Donald Trump's tariff fears. Sanofi boasts strong revenue growth (thanks to Dupixent) and a "dominant position in the vaccine sector", praises the analysis office. Additionally, Sanofi's financial position is remarkably robust, as the laboratory's net financial debt is slated to be almost completely wiped out by the end of 2026 (excluding major new acquisitions).
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Moreover, AlphaValue appreciates the "lack of patent expirations" over the next four years and the launch of "promising new drugs". From Momentum's perspective, Sanofi doesn't appear overpriced on the stock market, as the laboratory is only worth 11 times the expected profits for 2025 and 10 times those for 2026. These valuation levels seem reasonable, but the discount of Sanofi's stock compared to other major competitors is still due to a higher risk level.
Readers of Momentum, the premium investment letter on our stock exchange site, have been forewarned at the right times about the risk of Sanofi's stock collapsing (which has happened several times in recent months). Momentum, which assists its readers in buying and selling stocks at the right moment, has just provided its subscribers with an updated analysis of Sanofi's stock prospects. Discover our technical, financial, and economic analysis on stocks and the CAC 40. Choose an annual subscription, and get 5 months free. Just click the link.
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- Stephan Dubosq, a financial analyst, commends Sanofi's first quarter 2025 results, stating that the growth of Dupixent, vaccines, and other drugs surpassed the expectations of the financial community.
- Despite progress in Sanofi's laboratory pipeline being mitigated in recent months, Sanofi's management maintains its 2025 projections.
- The analyst at AlphaValue suggests that Sanofi's stock currently offers a growth opportunity in the stock market, citing strong revenue growth, a dominant position in the vaccine sector, and a robust financial position as reasons.
- Momentum, a premium investment letter, appreciates the lack of patent expirations for Sanofi over the next four years and expects the launch of promising new drugs. However, the discount of Sanofi's stock compared to other major competitors is still due to a higher risk level.
