Sanofi edges down on concerns over drugs pipeline, Acomplia delays
Shares in Sanofi-Aventis slipped back in morning deals amid
concerns over the pharmaceutical group's drugs pipeline and notably the
announced four-year delay to US approval of Acomplia, traders said. Sanofi shares were trading down 0.92 eur or 1.49 pct at
60.65, while the CAC-40 was up 9.75 points or 0.17 pct at 5,698.51.
In a note to clients this morning, analysts at Goldman Sachs voiced mild disappointment over Sanofi's R&D update earlier this week, saying 'the launch timing for a number of products is now later than we had initially anticipated'. As a result Sanofi's 'significant revenue gap remains and the company's near-term profile remains highly reliant on the timing of generic competition to Plavix and Lovenox'.
The sentiment was echoed by a Paris-based dealer who said investors are nervous over the apparent shortage of new products to drive short-term growth. 'The market just can't see anything that could make a big difference for Sanofi in terms of drugs, before at least 2009 or 2010, and that's a bit far ahead,' he said.
The announced four-year delay to US approval of Acomplia is also putting pressure on the share, he explained, as it raises uncertainties about Sanofi's prospects in the region. 'It's probably a bit contentious, but (President) Bush isn't going to do Sanofi any favours. He doesn't want Sanofi to compete with Pfizer or the other major US groups that were big contributors to his campaign financing,' he speculated.
In a note to clients this morning, Lehman Brothers analysts also cited concerns over 'the lack of transparency for the FDA delay to Acomplia approval'. In their view, the Acomplia issue, combined with uncertainties over Lovenox, is likely to lead to an underperformance in Sanofi shares relative to the sector.
Resources: http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19735506.htm
In a note to clients this morning, analysts at Goldman Sachs voiced mild disappointment over Sanofi's R&D update earlier this week, saying 'the launch timing for a number of products is now later than we had initially anticipated'. As a result Sanofi's 'significant revenue gap remains and the company's near-term profile remains highly reliant on the timing of generic competition to Plavix and Lovenox'.
The sentiment was echoed by a Paris-based dealer who said investors are nervous over the apparent shortage of new products to drive short-term growth. 'The market just can't see anything that could make a big difference for Sanofi in terms of drugs, before at least 2009 or 2010, and that's a bit far ahead,' he said.
The announced four-year delay to US approval of Acomplia is also putting pressure on the share, he explained, as it raises uncertainties about Sanofi's prospects in the region. 'It's probably a bit contentious, but (President) Bush isn't going to do Sanofi any favours. He doesn't want Sanofi to compete with Pfizer or the other major US groups that were big contributors to his campaign financing,' he speculated.
In a note to clients this morning, Lehman Brothers analysts also cited concerns over 'the lack of transparency for the FDA delay to Acomplia approval'. In their view, the Acomplia issue, combined with uncertainties over Lovenox, is likely to lead to an underperformance in Sanofi shares relative to the sector.
Resources: http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-19735506.htm
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