CHMP Positive on Sanofi's Lantus - Analyst Blog

Comment

Shutterstock photo

The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) recently issued a positive opinion related to Sanofi 's ( SNY ) diabetes drug, Lantus. The CHMP recommended the inclusion of safety and efficacy data from the ORIGIN (Outcome Reduction with Initial Glargine INtervention), a cardiovascular (CV) outcomes study, in Lantus' label.

Data from the seven-year ORIGIN study revealed no difference between Lantus and standard of care in terms of CV disease and mortality.

Lantus, which generated sales of €1.3 billion in the first quarter of 2013, is one of the top-selling drugs at Sanofi. We believe data from this study will encourage physicians to prescribe Lantus.

Lantus is also available as a pre-filled insulin injection pen, Lantus SoloSTAR. In the US, Lantus SoloSTAR accounts for 57% of Lantus sales.

Although Sanofi holds a strong position in the diabetes market, we note that the market is highly crowded with players like Novo Nordisk ( NVO ), Eli Lilly and Company ( LLY ) and AstraZeneca ( AZN ).

Sanofi carries a Zacks Rank #3 (Hold). We remain concerned about the generic erosion confronting most of Sanofi's key drugs including Plavix, Avapro, Lovenox, Taxotere, Eloxatin and Xatral. The genericization of Avapro and Plavix is expected to negatively impact Sanofi's business net income by around €800 million in the first half of 2013.

Sanofi is looking to combat headwinds by containing operating costs. Additionally, new product launches should make significant revenue contributions in the upcoming quarters.

Companies that currently look attractive include Novo Nordisk, carrying a Zacks Rank #2 (Buy).



ASTRAZENECA PLC (AZN): Free Stock Analysis Report

LILLY ELI & CO (LLY): Free Stock Analysis Report

NOVO-NORDISK AS (NVO): Free Stock Analysis Report

SANOFI-AVENTIS (SNY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
More Headlines for: AZN , CHMP , LLY , NVO , SNY


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com