Sanofi

Sanofi is a cash-generative, defensive, high-quality company, with a diversified franchise in the global healthcare industry. It has some interesting products moving through trials stage and, in Dupixent, it has a blockbuster.

Sanofi has a laudable environmental and social agenda, scoring especially well in areas such as public health and providing access to medicine. Like most pharmaceutical companies, Sanofi operates in a highly competitive environment, but we think it can succeed through a combination of its market leadership in active ingredients, its pipeline of drugs in development and the increasing demand for its therapies. 

Sanofi performs well in the Access to Medicine Index, reflecting its efforts to improve access to medicines, vaccines and diagnostics in low-and middle-income countries.

Like many other pharmaceutical companies, however, scrutiny over drug pricing, access to essential treatments, and ethical patent practices remains. There is growing pressure to expand access in low- and middle-income countries while maintaining profitability. 

Potential risks include regulatory pressures, reputational damage, and reduced market share in emerging economies. 

The company faces risks related to product safety and clinical trial transparency. Delays in reporting adverse effects or lack of trial diversity can erode public trust and regulatory confidence. Additionally, the use of animal testing in medical discovery and development, while often mandated by regulatory authorities to ensure human safety, raises ethical concerns. Potential risks of the company’s products include patient harm, regulatory penalties and reputational damage.