Seeking Alpha: Sanofi's Balanced Model Looks Undervalued

There has always been a certain boom/bust aspect to the branded drug business, but French drug giant Sanofi (SNY) seems to be trying a different path. Instead of a narrow focus, Sanofi has a business that is diverse both in markets and geographies served. Instead of a pipeline built around blockbuster home run stocks, Sanofi seems to be focusing on steadily banging out singles and doubles. Time will tell if this different approach will work, but the valuation certainly merits a closer look.

A Solid Close To The Year
Sanofi ended the year on a relatively strong note, with revenue growth and margin performance that was broadly clean and in line with expectations. Reported revenue rose about 9%, with better than 10% growth in pharmaceuticals, 10% growth in animal health, 13% growth in consumer, and 16% growth in generics offset an 8% revenue decline in vaccines. It should be noted, though, that "growth" in pharmaceuticals did have a great deal to do with the inclusion of Genzyme (which itself grew about 1% this quarter).


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Sanofi's Balanced Model Looks Undervalued