) successfully conducted a bond market transaction, thereby
issuing notes worth €1 billion. Sanofi intends to utilize the
proceeds from the transaction for general corporate purposes and
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Sanofi has offered €1 billion notes carrying an annualized
interest rate of 1.875%. The notes will be due in 2020.
Apart from the bond issue, Sanofi was in the news recently when
its oral drug Aubagio 14 mg, gained approval from the European
Commission (EC). The EC approved Aubagio as a once-daily
treatment for adults suffering from relapsing remitting multiple
The approval did not come as a surprise as the European Medicines
Agency's Committee for Medicinal Products for Human Use had
recommended the approval of Aubagio in Mar 2013.
We note that Aubagio is currently marketed in the U.S. as a
once-daily treatment for patients with relapsing forms of
multiple sclerosis. Aubagio is under review in several other
countries. In the second quarter of 2013, Aubagio generated sales
of €33 million as compared to €20 million in the first quarter of
2013. We believe that Aubagio possesses significant
Sanofi carries a Zacks Rank #4 (Sell). We are concerned about
generic erosion confronting most of Sanofi's key drugs.
Additionally, recent pipeline failures (oncology candidate
- iniparib and anticoagulant - otamixaban) have put immense
pressure on Sanofi's pipeline.
Companies that currently look well-positioned include
Gilead Sciences Inc.
) with a Zacks Rank #1 (Strong Buy) and
) with a Zacks Rank #2 (Buy).