May 31, 2018

SAN:FRA – Market expectations are for sustained weakness in Uniform ROA, but management is confident in their CHC business, Praluent, and investments


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    • Sanofi (SAN:FRA)currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 14.4x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their CHC business, Praluent, and investments
    • Specifically, management is confident that their first quarter results were in line with expectations, and that sales improvements in their CHC business were driven by sales in Latin America, particularly in Brazil and Argentina. Additionally, they are confident in their focus on enhancing patient access to Praluent through streamlining and creating more favorable UM criteria, and that their business operating income line reflects the investments they are making to drive returns
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