Trade the Genfit share!
GENFIT

Analysis before buying or selling Genfit shares

Trade the Genfit share!
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Like many traders, you may be interested in trading Genfit shares and want to learn more about this stock before you start. This is exactly what we offer you here, with a detailed fact sheet that includes all the data you will need to understand the economic environment of this group, such as details of its activities, its main competitors and its recent alliances, as well as data that will allow you to anticipate its future development, with its major strengths and weaknesses, and the elements that you should prioritize in your fundamental analysis of this stock.

Elements to consider before selling or buying Genfit shares

Analysis N°1

The molecules developed by Genfit are not immediately marketed and therefore only earn money after several years of development. It is therefore necessary to correctly anticipate the market to which the molecules under development will be applied and the real medical needs in this area. This will ensure that no other treatment is likely to be marketed beforehand.

Analysis N°2

Because of the strong competition in the field of NASH treatments, we will closely follow all the statements of Genfit's main competitors in this segment, namely Intercept, Galmed or Tobira, and any merger or acquisition operations that may take place in this field.

Analysis N°3

Of course, this will also take into account any commercial or research partnerships that Genfit may also enter into in order to bring its drugs to market more quickly.

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General presentation of Genfit

Genfit is a French company that specializes in the field of biopharmaceuticals. More precisely, this group is one of the leaders in this sector at the European level. Genfit has achieved its current market position by specializing in the research and development of drugs for the prevention and treatment of risk factors associated with cardiometabolic diseases such as atherosclerosis, dyslipidemia, hypertension, diabetes and obesity. Research and development of drugs to treat certain inflammatory diseases is also one of its specialties that has contributed to its success.

Genfit is also a company that bases its development primarily on internal research programs or research programs supported by financial partners. In this way, Genfit is able to create value for its shareholders while effectively managing the risks associated with these programs. As a result of these strong investments in research, Genfit has been able to develop, both on its own behalf and on behalf of other pharmaceutical giants, a number of medicines, some of which are still in clinical and pre-clinical development and are expected to join the group's already extensive portfolio of treatments.

As a result of this research and discovery, Genfit has become a key player in certain scientific areas of biopharmaceuticals.

Analysis before buying or selling Genfit shares
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The major competitors of Genfit

The Genfit Group is active in the very specific field of biopharmaceuticals. But of course it is not alone in this field and its competitors are both numerous and large. Let's find out who Genfit's biggest competitors are in the market:

The Danish company Nordisk

is one of Genfit's biggest competitors and specialises in the treatment of diabetes, in which it is one of the market leaders. But Nordisk also offers treatments for haemophilia and growth disorders. It markets its products in over 170 countries.

Gilead Sciences of the US

is another serious competitor to Genfit and specialises in biopharmaceuticals for AIDS and liver disease. It also offers oncology and hematology treatments as well as treatments for cardiovascular and inflammatory diseases.

Another American company, Biogen 

 is one of Genfit's competitors. It specialises in the treatment of neurodegenerative diseases, haemophilia and autoimmune diseases. Biogen is present in 50 different countries.

Amgen, a US-based company 

is another major competitor for Genfit and specialises in recombinant human proteins and the development of new biotherapy solutions. It is particularly well established worldwide.

The British company Shire

is also a competitor to be considered and specializes in the treatment of rare diseases such as seizures, pancreatic cancer, immune deficiencies, short bowel syndrome, hereditary angioedema or hyperphosphatemia.

The Australian CSL

is known as the second largest producer of flu vaccines, which it has made its specialty. Of course, it also offers other types of quality medicines which it distributes in about 30 different countries.

The giant Pfizer 

 is also a competitor to watch. It specializes in the treatment of diseases such as hypertension, colorectal cancer, cholesterol and depression.

The American group Celgene

is another important competitor of Genfit and is specialized in cancer drugs. It markets its products in more than 70 different countries.


The major partners of Genfit

In order to ensure its development and expansion capabilities, Genfit relies heavily on the partnerships and strategic alliances it can form with some of the other companies in the same or related industries. In the past, this has allowed the company to increase its growth significantly, and it could therefore allow it to gain even more interest from traders in the future. To better understand the value of these partnerships in your trading, here are some examples of the most recent alliances between Genfit and its partners.

Kowa

In 2002, for example, the Genfit group set up a very interesting strategic partnership with the Japanese company Kowa, also specialising in pharmaceuticals. The two companies worked together to develop a new treatment for hypercholesterolemia. As part of this agreement, Kowa has purchased a license from Genfit for a period of 5 years in exchange for dividends and interim payments. The purpose of this partnership is of course primarily financial for Genfit, as it represented a significant source of revenue.

Sanofi

But some of Genfit's partnerships are even older. This is the case with the alliance with Sanofi-Adventis, which was established in 1999 and renewed in 2009 for one year. During this period of collaboration, the two companies have worked together on treatments for type 2 diabetes and inflammatory diseases, but also more recently on treatments for neurodegenerative diseases.

Novartis

More recently, in 2017, Genfit shares gained a lot of points following rumors of a collaboration with or equity investment by the Swiss company. Indeed, Novartis is trying to position itself actively in the development of treatments for NASH, which is non-alcoholic steatohepatitis, an increasingly common liver disease. Genfit is one of the most advanced biotech companies in this field. It remains to be seen whether or not this combination will be finalized.

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Positive factors for Genfit shares
The factors in favour of a rise in the Genfit share price:

First of all, Genfit's first asset, and undoubtedly the point that has enabled it to achieve its current position and reputation, is of course its specialization in certain advanced treatments and patents. Indeed, this biopharmaceutical company develops solutions for the early diagnosis, prevention and treatment of cardiometabolic diseases such as diabetes or dyslipidemia, which are increasingly common in the world population. More recently, Genfit has also made real progress in the search for treatments for NASH, a non-alcoholic steatotic liver disorder, and for other types of diseases affecting the liver or intestines. These specialties allow the company to sell its products very easily on a booming market.

Genfit's strategy of effectively compartmentalizing its portfolio into five major programs is another advantage for the company, as it does not put all its eggs in one basket and avoids the risks associated with a single research area. For example, Genfit has one program dedicated to Elafibranor or GFT505, a treatment currently in clinical trials for NASH. Two programs are also underway in biomarkers for type 2 diabetes. Another program is focused on circadian rhythm disturbances associated with type 2 diabetes. Another program is focused on immune system dysregulation targeting the liver or intestines and a final program is focused on liver or intestinal fibrosis mechanisms with pharmacological validation underway.

The fact that type 2 diabetes-related diseases are currently increasing in number and prevalence is also a strong point for Genfit, which can benefit from the growing market for these diseases due to obesity, as well as NASH diseases, which currently affect between 12 and 17% of Americans.

Genfit can also count on its strong investment in research and development and on the partnerships it regularly sets up, as was the case with Sanofi, which enable it to obtain excellent results and truly innovative solutions.

Finally, Genfit's last advantage concerns the NASH diseases we mentioned above, which are really expanding. Indeed, Genfit has already filed a patent for GFT505 for the European and US market in 2014. This treatment will thus be protected by this patent until 2035. In addition, this treatment has exceptionally received accelerated review status from the FDA in the United States due to the increasing proportion of the population suffering from these NASH disorders and the urgent need to find an effective solution to this health problem.

Negative factors for Genfit shares
The factors in favour of a drop in the Genfit share price:

First of all, it should be noted that Genfit's stock is particularly volatile and changes according to announcements on the various clinical trials conducted. It is therefore necessary to stay informed about these trials in order not to lose money.

Another weakness of Genfit is of course the very strong competition in this sector, as we have seen previously. The French company has to face the real behemoths of the biopharmaceutical industry, especially in the field of diabetes treatments, which are the object of all the envy.

We can also regret the lack of history of the Genfit share which makes the technical analysis of this stock more complex. Indeed, the company was transferred from the Alternext market to the Euronext market in 2014, i.e. very recently.

The group's shareholders also sometimes suffer certain setbacks due to the very high cost of certain development phases or clinical tests. This was notably the case in 2016 because of the phase 3 of Elafibranor which cost the company a lot of money.

There is also concern that Genfit's main competitor in liver disease, Intercept, may be able to get faster approval for its drug and thus take the market by storm.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

When and how was Genfit created?

Genfit was founded in September 1999 in Lille by Jean-François Mouney and Florence Séjourné with Professors Bart Staels and Jean-Charles Fruchart. Since then, the company has grown strongly with multi-year research collaboration contracts with major pharmaceutical companies and academic institutions. From the outset, 23 employees worked at the Pasteur Institute in Lille before the construction of its headquarters in 2000.

Does Genfit's stock pay dividends?

Genfit's stock is not a yielding stock as it does not pay dividends to shareholders. The company, like most biotechs on the market, prefers to reinvest its profits in its research to boost its growth. It is therefore possible to trade on the rise of this stock on the stock market with CFDs or contracts for difference instead of buying this stock and holding it in your stock market portfolio.

What analysis should I do for Genfit shares?

To best anticipate future price movements in Genfit shares, you should use the different types of analysis available to you, including fundamental analysis, which is based on the study of news and key events, and technical analysis, which focuses on the study of stock market charts and historical and current price movements. By combining these two analyses, you will obtain relevant signals.

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