Sanofi, TB Alliance Join Forces - Analyst Blog

By
A A A

Sanofi ( SNY ) recently announced that it has entered into a research collaboration agreement with the Global Alliance for Tuberculosis (TB) Drug Development (TB Alliance).

Sanofi and TB Alliance will work together to speed up the development of several of Sanofi's novel TB compounds. Sanofi is developing a vaccine for TB, which is currently in phase I.

We note that several big pharma players including Novartis ( NVS ), Janssen Pharmaceuticals of Johnson & Johnson ( JNJ ), GlaxoSmithKline ( GSK ), Bayer Healthcare AG ( BAYRY ) and AstraZeneca ( AZN ) have inked pacts with TB Alliance.

Currently, TB Alliance has more than 20 development programs underway, of which 3 candidates are in late stage development.

We remind investors that earlier this month the US Food and Drug Administration (FDA) granted priority review status to the new drug application (NDA) of Janssen's TB candidate, bedaquiline (TMC207).

Janssen is looking to get bedaquiline approved as part of a combination therapy for pulmonary, multi-drug resistant tuberculosis (MDR-TB) in adults. FDA approval would make bedaquiline the first TB candidate to gain approval in more than 40 years. Moreover, bedaquiline would be the first and only treatment to be approved for MDR-TB.

According to the World Health Organization, TB affected approximately 8.8 million people in 2010, of which 1.4 million died.

Our Recommendation

We are pleased with the company's efforts to develop its pipeline. We expect Sanofi to continue to contain operating costs in order to increase earnings in the face of weakening sales of some of its biggest products. We also expect the company to pursue bolt-on acquisitions.

We currently have a Neutral recommendation on Sanofi. The stock carries a Zacks #3 Rank (Hold rating) in the short run.


 
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
 
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
 
GLAXOSMITHKLINE (GSK): Free Stock Analysis Report
 
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
 
NOVARTIS AG-ADR (NVS): 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 The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AZN , BAYRY , GSK , JNJ , NVS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

My Career No Longer Exists
My Career No Longer Exists          

Stocks

Referenced

60%
100%
80%
100%

Most Active by Volume

105,767,201
  • $46.30 ▲ 19.98%
80,574,036
  • $15.58 ▲ 1.56%
66,424,299
  • $3.46 ▲ 1.76%
42,459,394
  • $3.82 ▲ 0.79%
36,704,800
  • $13.98 ▼ 14.02%
35,625,113
  • $74.677 ▲ 1.31%
33,067,430
  • $29.26 ▼ 0.71%
32,374,580
  • $98.15 ▼ 0.23%
As of 7/30/2014, 04:04 PM