Sanofi: stock falls on broker downgrade
(CercleFinance.com) - UBS, which is not very optimistic about the French biopharmaceutical group's stock, has downgraded it from buy to neutral.
In its morning comments, analysts explain that they expect the laboratory's share price to mark a pause following the recent increase in its targets for 2022.
After the two clinical failures of amcenestrant in breast cancer and tolebrutinib in multiple sclerosis, UBS says it does not see many catalysts that could boost the stock by the end of the year.
The Swiss bank also points to the prospect of Aubagio losing its patent next year and rising research and development (R&D) costs.
Finally, UBS fears that the litigation surrounding the heartburn drug Zantac, which is suspected of containing a carcinogenic ingredient, will prove problematic when it is litigated in the US in early 2023.
As a result, UBS downgraded the stock to 'neutral' (from 'buy'), while reducing its corresponding target price from 118 euros to 103 euros.
Following these comments, Sanofi shares were down over 1% in early trading, the second biggest faller in the market, which was just afloat at the same time.
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