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Sanofi (SNY)

pharmaceuticals-sny-stockMarket Cap: $137 billion
Current Dividend Yield: 3.7%

Patent expirations have been a real problem for pharmaceuticals in recent years — and Paris-based Sanofi (SNY) has felt its share of pain on that front, particularly after its clot-busting drug Plavix went off patent two years ago.

More recently, the FDA delayed the launch of SNY’s multiple-sclerosis drug Lemtrada; the company plans to resubmit that application in the second quarter. That said, SNY’s blockbuster diabetes drug Lantus racked up $7.5 billion in sales last year alone and sales have grown by double-digit rates over the past couple of years.

Although Sanofi faces a patent cliff on the drug as early as next year, U300 is in late-stage clinical trials and has demonstrated even greater success in controlling blood sugar levels — particularly at night. SNY also is making a major play for emerging markets: most notably Africa.

Sanofi already has had a rough start to 2014, losing nearly 11% between Jan.1 and Feb. 6.  Although the stock has recovered that lost ground in the past seven weeks, SNY still looks affordable, trading at just 13 times forward earnings.

Article printed from InvestorPlace Media,

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