Sanofi shares: Price analysis before buying or selling

Can I receive dividends when I buy Sanofi shares?

Yes

ISIN code: FR0000120578

Ticker: EPA: SAN

Index or market: CAC 40

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Elements to consider before selling or buying Sanofi shares

Analysis N°1

Since the Sanofi group operates in the health sector, you should monitor the development of life expectancy and the main health problems which can generate additional income.

Analysis N°2

Sanofi's partnerships can also provide some leads about Sanofi's development and growth possibilities, and in particular with regard to partnerships with bio-technology and research companies.

Analysis N°3

The Sanofi group obviously faces strong competition from other large pharmaceutical companies around the world. Particularly the generic drugs market which could disfavour the company.

Analysis N°4

In that respect, patents filed by the group following the launch of new products and the end dates of these patents should also be monitored.

Analysis N°5

The policies of medical treatment and reimbursement of medicines by the different countries in which Sanofi sells its products also have an impact on the group's sales.

Analysis N°6

Finally, before you buy or sell Sanofi stock, monitoring the regulations concerning the approval of medicines worldwide which may increase or reduce the sales of Sanofi is also important.

Analysis before buying or selling Sanofi shares

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General presentation of Sanofi

The Sanofi group is the European leader in the pharmaceutical industry. Its activity affects various sectors of activity related to pharmaceutics such as the production of pharmaceuticals and generic drugs which represents almost 85.1% of the group's turnover along with the production of human vaccines or even veterinary products with almost 14.9% of turnover.

Due to more than 75 production centres around the world, the group supplies both Europe with 27.4% of its revenue along with the United States with nearly 33.5% of its turnover, Japan with 5% of its turnover, Asia with 11.5%, Latin America with 7.6%, Africa and the Middle East with 6.5% and the rest of the world with 8.5%.

The Sanofi share price is currently listed on compartment A of the Euronext Paris market in France. The Sanofi group is also included in the composition of the French national index CAC 40.

Photo credits: Lionel Allorge

The major competitors of Sanofi

The Sanofi group is unfortunately not the only one in its sector of activity which is also very highly competitive. As a result, it's important to know who the main adversaries of the group are in order to follow the news and major publications before buying or selling. Here is a quick overview of Sanofi's most important competitors:

Pfizer

First of all, the Pfizer group is undoubtedly Sanofi's main competitor. This American pharmaceutical company was founded in 1849 and is present in more than 150 countries around the world today. It's one of the leaders in its sector of activity worldwide, particularly in terms of market capitalization. The group also employs over 81,800 people around the world, including nearly 3,000 in France. It regularly carries out mergers with other competing companies in order to increase its profitability and its worldwide positioning.

Novartis

Another major Sanofi competitor to be monitored is the Novartis group, which is a Swiss pharmaceutical group created in 1996 following the merger between the Sandoz and Ciba-Geig companies. Its head office is based in Basel.

Merck

Among Sanofi's other major competitors is the German company Merck, which also specializes in the pharmaceutical sector as well as in the chemical sector. The group is currently based in Darmstadt in the State of Hesse.

GSK

Also known as GlaxoSmithKline, the GSK Group is a British multinational and one of the leaders in the pharmaceutical industry worldwide. It was created by the merger of Glaxo Wellcome and SmithKline in 2000. The British group now employs over 95,490 people in more than 116 countries around the world. GSK is also recognized as one of the most innovative companies in the world, thanks to its strong investments in research and development. GSK has two different branches of activity with the GlaxoSmithKline Laboratory and GlaxoSmithKline Consumer Healthcare.

Roche

The Swiss pharmaceutical company Roche is also a competitor of Sanofi to be taken seriously. It's one of the main global companies in this sector of activity. Since 2004, the company has carried out two different types of activities, the pharmaceutical sector and the diagnostic sector. The Roche group operates in more than 150 countries around the world, but its headquarters are still in Basel, Switzerland. The company currently employs over 94,000 people.

AstraZeneca

Finally, the last major competitor is the AstraZeneca group which is a pharmaceutical group resulting from the merger between Astra and Zeneca in 1999. The group currently employs nearly 63,000 people worldwide in the fields of research, development and manufacturing as well as the sale of pharmaceutical products and the provision of services for medical care.

The major partners of Sanofi

For many years, Sanofi has forged strategic partnerships with various companies engaged in activities related or not to its own. Here are the main alliances of the Sanofi group and its main partners.

Coca-Cola

Sanofi is partners with Coca-Cola and decided to develop a healthy drink in 2012.

GDF-Suez

In 2013, Sanofi also joined forces with GDF-Suez in a joint project aimed at reducing worldwide energy consumption.

Google

In 2015, the Sanofi group announced a partnership with Google by pooling their skills and know-how in the fight against diabetes with easier detection of glucose levels.

Denali Therapeutics

In 2018, the Sanofi group set up a partnership with the Denali Therapeutics company aimed at jointly developing different molecules for the potential treatment of different neurodegenerative and inflammatory systemic diseases. As a result, Sanofi has planned to pay Denali 125 million dollars initially as well as other future payments according to the progress of the stages for a total amount greater than one billion dollars.

Regeneron

Even more recently, in 2019, Sanofi allied with its competitor Regeneron in the United States again aimed at developing an immuno-oncology treatment, focusing mainly on two flagship products already under clinical development.

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The factors in favour of a rise in the Sanofi share price:

In order to understand how future events may affect Sanofi's share price and therefore its attractiveness to investors, it is important to know how they may impact its growth. To do this, you need to know the strengths and weaknesses of this company and therefore the advantages and disadvantages of its share price before you buy or sell. We suggest you discover them now:

Let's start this overview with a summary of the main strengths that the Sanofi group currently has and therefore the main advantages of this share.

First of all, let's remember that Sanofi is currently one of the largest pharmaceutical companies in the world. It is the fifth largest company in the world in terms of turnover and is also the leader in its sector in Europe.
Sanofi also benefits from an excellent strategic and geographical positioning which allows it to protect itself from the risks of exposure to a single market.
The Sanofi group's leadership in specific segments is another of its strengths. The company is currently the European leader in vaccines.
Another advantage of Sanofi is that the global demand for medicines and treatments is increasing, due to the ageing of the world's population but also due to increasingly frequent health crises, which increase demand and benefit the entire pharmaceutical sector.
Another strength of the group is the diversification of its activities. Here again, the advantage for Sanofi is to limit the risk of exposure to a single field. For example, in the event of a major change in the reimbursement policy for a drug, this diversification allows Sanofi to reduce its losses by generating revenue from other reimbursed drugs.
Sanofi also benefits from a large cash position which allows it to significantly increase its strategic investments and even to plan share buybacks. These operations thus increase the value of the group's historic ordinary shares and make them more attractive to investors.
Another of Sanofi's major strengths is its pipeline in oncology, with more than 15 compounds still in development and nearing the end of clinical trials. If one or more of these treatments obtain satisfactory results and the necessary approvals for marketing, this can generate additional revenue.
Another of Sanofi's major strengths is its strategy of making strategic acquisitions. In the past, Sanofi has acquired promising companies, particularly in the field of biotechnology, as was the case with Genzyme, which enabled it to position itself in the rare disease sector.
Finally, the group's last asset concerns its dividend. Indeed, Sanofi pays a regular dividend to its shareholders and the amount of this dividend tends to increase over time, which makes its share more attractive to investors looking for yield.

The factors in favour of a drop in the Sanofi share price:

Now that we know the main advantages of the Sanofi share, let's review its various disadvantages.

The first drawback of Sanofi concerns its high exposure to the risks linked to the arrival on the market of generic drugs. Indeed, once Sanofi's patents expire, they can be exploited by other laboratories putting cheap products in direct competition with them.
Another major disadvantage of the Sanofi group is that policies are changing over time and are putting increasing pressure on pharmaceutical companies like Sanofi. In particular, they are seeking to reduce the cost of certain essential medicines for the population, which also weighs on Sanofi's profitability.
Finally, the last disadvantage of Sanofi on the stock market concerns the global economic slowdown, which tends to reduce the demand for non-reimbursed drugs and which can therefore have a more or less significant impact on the company's sales.

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

What is the origin of the Sanofi group?

It was in September 1973 that the history of Sanofi began when Elf Aquitaine decided to set up a subsidiary in the hygiene and health sector under the name of Omnium Financier Aquitaine for Hygiene and Health . The company was then made up of 10 people and served as a start-up funded by the French group thanks to an endowment of more than 500 million francs. It is this company which, after having developed, will become the Sanofi group.

What is the market capitalization amount of the Sanofi group?

Currently in 2020, the total market capitalization of the Sanofi group reaches 112.9 billion euros. It is one of the largest market capitalizations on the French stock market. It should also be noted that Sanofi's turnover for the last accounting year for 2019 was 32.126 billion euros. This turnover has been increasing in recent years.

Where to buy and sell Sanofi share?

While many investors use stock market investment products to buy or sell shares in the Sanofi group, others favor live trading and use online trading platforms for this purpose. These platforms make it possible to speculate upwards or downwards on the price of this value thanks to CFD contracts or contracts on the difference and which concern numerous French and international stock market shares.

Why do Sanofi shares fall?

Sanofi shares can fall for a number of reasons, including if Sanofi's financial results, such as sales, earnings or growth, do not meet investors' expectations, this can lead to a fall in the share price. The loss of patents on Sanofi's leading products may lead to increased competition and lower revenues for the company, which may have a negative impact on the share price. If Sanofi's new product launches are not successful, this may have a negative impact on the company's growth prospects, which may result in a lower share price. Sanofi is subject to strict regulations in the pharmaceutical industry, and any regulatory compliance issues can lead to high costs and a lower share price, and any production issues, such as product recalls or supply chain interruptions, can lead to a lower share price.

What price should I pay for Sanofi shares?

The price of a Sanofi share depends on supply and demand on the stock market. Sanofi is a publicly traded company, which means that its share price can fluctuate depending on various factors, such as the company's performance, economic conditions, political and geopolitical events, competition in the sector, etc. To find out the current Sanofi share price, you can consult online stock market sites, financial newspapers or your stockbroker. The share price is usually expressed in euros or in the currency of the stock market where it is listed. Currently, and for several years, it has cost less than €100. It is important to note that investing in shares involves risks and it is recommended that you consult a professional financial adviser before making any investment decisions.

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