) successfully conducted a global bond market transaction,
thereby issuing notes worth $1.5 billion. Sanofi intends to
utilize the proceeds from the transaction for general corporate
purposes and refinancing debt. The global bond issue is
registered with the US Securities and Exchange Commission (SEC).
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Sanofi offered $1.5 billion notes carrying an annualized interest
rate of 1.25%. The notes will be due on Apr 10, 2018. Sanofi
filed shelf registration statement with SEC on Mar 11, 2013.
Apart from the global bond issue, Sanofi was in the news recently
when it announced that it has started constructing a new
manufacturing facility in the Saigon High Tech Park - Ho Chi Minh
City, Vietnam. Sanofi plans to invest approximately $75 million
in this new plant. The new plant is expected to be fully
operational by the end of 2015.
The manufacturing facility is expected to produce pharmaceuticals
and consumer healthcare products with an initial capacity of 90
million units per year, which is expandable up to 150 million
We believe that the manufacturing facility will help Sanofi to
meet the demand in Vietnam and Association of South East Asian
Nations (ASEAN) markets.
Construction, qualification and validation of the manufacturing
facility are expected to commence in the third quarter of 2013.
Sanofi expects the first batch of commercial grade drugs to be
available in 2015.
We note that Sanofi is looking to combat the threat of
genericization hanging over many of its drugs by signing
deals/making acquisitions. The company's focus on the high
potential emerging markets is also impressive.
Sanofi carries a Zacks Rank #4 (Sell) in the short run.
Meanwhile, stocks such as
Transcept Pharmaceuticals, Inc.
Osiris Therapeutics, Inc.
) carry a Zacks Rank #1 (Strong Buy) and are worth