Why Sanofi SA (NYSE:SNY) is Set for a Great 2013

Additionally, Sanofi has Lyxumia (Type 2 diabetes for use in combination with Lantus) up for EU and FDA decisions in Q1 2013. Lyxumia will compete with Novo Nordisk’s Victoza and Bristol-Myers Squibb (NYSE:BMY)’s Byetta and its long acting form Bydureon, which is injected once a week as opposed to Byetta (twice a day) and Victoza (once a day) according to the Mayo clinic.

Sanofi also had significant program success last year with Zaltrap (colorectal cancer) and Aubagio (multiple sclerosis) getting FDA approval in 2012 with EU approval for both expected in Q1 2013. Lemtrada (multiple sclerosis) is also up for FDA decision in Q1 2013 and a European decision in Q2, and there are plans to introduce a second generation Lemtrada in future. When Sanofi bought Genzyme it got Lemtrada as part of the deal and is combining it with Aubagio in order to truly create an MS franchise alongside its diabetes strength.

Other pipeline points of note are an–almost inevitable–JAK2 inhibitor for patients with myelofibrosis (MF).  Incyte Corporation (NASDAQ:INCY)’s is there first with Jakafi, and YM Bioscience has an exciting JAK inhibitor CYT37 (which is even more interesting now that Gilead has bought YM) but Sanofi has its inhibitor in Phase III with headline results due in Q2 2013. Incyte has the lead but it can’t feel entirely comfortable that it will stay there for more than a few years. Sanofi also has a dengue fever vaccine in development with Phase III results due in 2014.

Finally, Sanofi has a potentially huge antibody in development with Regeneron. PCSK9 is believed to lower cholesterol and the risk of coronary heart disease. Phase II data was quite impressive.

The Bottom Line

Sanofi has transformed itself into a very impressive company with a lot of near term approval decisions to come and an exciting mid-stage pipeline. It also has some short term upside from the tough flu season we are seeing.  Its end markets are diversified and it has successfully moved away from being primarily a small molecule company. Did I mention the large yield too? I think the stock has further to run.

The article Why This Pharma is Set for a Great 2013 originally appeared on Fool.com.

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