Is Sanofi planning to extend its 2018 buying spree?
In the first few months of 2018, French pharmaceutical giant Sanofi has been splashing the cash. First the company closed a deal to purchase American “haemphilia protein therapy-focused” drug maker Bioverativ for a modest $11.6 billion. Then, just a week later, it picked up Ablynx, a Belgian biotechnology company that specializes in the “discovery and development of Nanobodies” for a bargain €3.9 billion. Could more spending be on the way?
Sanofi’s share price inches up last week, +1% in 5 days
SOURCE: Yahoo Finance
Oliver Brandicourt, the company’s CEO, dropped hints that that might be the case. While reassuring the press that “we’re not expecting to do one acquisition every week, that’s for sure,” he pointed out that the company had set a general target spend of about €20 billion for acquisitions this year. They might be more than half way through the budget – but they still have a lot of cash to play with.
Katrina Megget, commenting for the Royal Society of Chemistry, noted that Sanofi’s recent acquisitions suggest a new direction: blood disorders. The purchase of Ablynx, in particular, will give Sanofi access to a “potential blockbuster” in the field which is currently awaiting European approval, and is expected to be filed with U.S. regulators within the first six months of the year.
Could this new direction be a pointer to show us what’s next on the cards for Sanofi?
Dominion holds Sanofi in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.