Sanofi: Oddo confirms recommendation after FDA decision
(CercleFinance.com) - The FDA has said that it is unable to approve the drug Zynquista (sotagliflozin) as it is.
Oddo said that the FDA's Complete Response Letter (CRL), however, follows an initial recommendation of an advisory committee that was already split down the middle last January (8 votes for and 8 votes against).
At this stage the broker says that it has no visibility regarding the schedule of discussions.
However, Oddo maintains its buy rating on the Sanofi share with a target price of 91 euros. Despite this disappointment, at this stage the real impact for Sanofi is only negligible. We still consider the share's current valuation as extremely attractive. Indeed, as we enter a period of growth, with EPS growing by 8.9% between 2018 and 2022, the share is still trading at a discount of 14% relative to its sector in terms of its 2020 P/E.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Oddo said that the FDA's Complete Response Letter (CRL), however, follows an initial recommendation of an advisory committee that was already split down the middle last January (8 votes for and 8 votes against).
At this stage the broker says that it has no visibility regarding the schedule of discussions.
However, Oddo maintains its buy rating on the Sanofi share with a target price of 91 euros. Despite this disappointment, at this stage the real impact for Sanofi is only negligible. We still consider the share's current valuation as extremely attractive. Indeed, as we enter a period of growth, with EPS growing by 8.9% between 2018 and 2022, the share is still trading at a discount of 14% relative to its sector in terms of its 2020 P/E.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.