This company develops products for the Pharmaceuticals, Human Vaccines and Animal Health industries. The company’s dividend yield is 3.8%, paid yearly.
Based in France, Sanofi (SNY) is a global integrated healthcare company focused on seven growth platforms: Diabetes Solutions, Vaccines, Genzyme, Emerging Markets, Consumer Healthcare, Animal Health and Other Innovative products.
We like that the company has a relatively robust and promising pipeline of new pharmaceuticals, including several that address diseases that have no current treatments. We are attracted to SNY’s industry leading global insulin position, via its mega blockbuster Lantus. We believe the opportunity in this space is substantial as the global population of diagnosed diabetics is likely to show robust growth as obesity rates continue to climb.
Furthermore, differentiated flu vaccines seem to have invigorated sales, and Genzyme’s rare disease products (such as Cerezyme and Fabrazyme) are a major growth driver. Additionally, the firm’s footprint within emerging economies offers attractive long-term growth potential.
We are fans of Sanofi’s well-diversified business portfolio and think that the shares are attractively valued.
John Buckingham, The Prudent Speculator, www.theprudentspeculator.com, 877-817-4394, March 3, 2014
