Sanofi and Regeneron Hit Another Bullseye

SNY Revenue (TTM) Chart
SNY Revenue (TTM) Chart

Regeneron's third-quarter revenue rose 57% this year compared to last, and the company is doing even better on the bottom line. Third-quarter net income more than doubled from $83 million in 2014 to $210 million this year. Next-generation cholesterol-lowering drug Praluent receives the lion's share of attention for Regeneron, but sales from this potential blockbuster have only just started rolling in. After winning FDA approval in late July, Sanofi (who partnered with Regeneron to develop the drug) recorded just $4.3 million in sales of Praluent during the third quarter.

With Praluent on the rise, and a possible winner in sarilumab, Regeneron's future could hardly look brighter. The mood at Sanofi HQ is far less jubilant. Sanofi's bottom line has been stagnating for years. Over the summer, the company's new CEO, Olivier Brandicourt, unveiled plans to reorganize business segments. That plan was largely ignored by Wall Street, but long-term guidance given during the November 6 investor day conference got a reaction.

SNY Chart

The stock is down about 10% after announcing expected top-line growth of between 3% and 4% until 2020. While most companies in this position would try to cut costs, that isn't a part of Sanofi's strategy. In fact, the company insists we'll need to wait until 2018 before margins improve.

It's a long way out, but with a bit of luck, sarilumab could go a long way toward helping Sanofi meet those lackluster goals.

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The article Sanofi and Regeneron Hit Another Bullseye originally appeared on

Cory Renauer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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