Sanofi (SNY)

[TREND1]

Bulls Say
OSeveral products in the company's pipeline
address diseases where there are no current
treatments or use a novel mechanism of action,
which should allow for strong pricing power.
OThe FDA rejection of the new competing insulin
degludec should mean Sanofi will have the bestin-
class insulin in the most important market
through 2015.
OWith an industry-leading position in the insulin
market, Sanofi's Lantus and next-generation
insulin Toujeo are poised for robust growth in
emerging markets as the diabetic patient
population grows due to increasing obesity
trends.
Bears Say
OSanofi's strong entrenchment in China could
come under duress as Chinese officials are
aggressively reviewing pharmaceutical marketing
practices.
OThe patents on Lantus expire between 2014 and
2015 and while significant generic competition is
not expected due to complexities of insulin
manufacturing, a major push by generic firms
could be detrimental to a key product for Sanofi.
OBranded biosimilars of Lantus are expected
from Merck and Eli Lilly, which could create a major
drag on earnings growth post 2017