In key news on French stocks, Sanofi S.A. (FR:SAN) is reportedly planning to revamp its U.S. vaccine operations, including trimming some jobs. As per Endpoint News, the move is part of the pharma company’s ongoing restructuring, aiming to enhance its responsiveness to patients and customers. The company refrained from providing further information regarding both the timeframe and the number of employees who will be impacted. Sanofi shares traded down by 1.1% on Thursday.
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Based in France, Sanofi is a global pharmaceutical company, that provides a wide range of medicines and vaccines.
Sanofi’s Share Price Saga
Sanofi’s shares experienced a significant drop in October, falling by around 19% in a single day after the company withdrew its 2025 profit targets and announced plans to spin out its consumer unit. In a shift towards increased investment in immunology and inflammation drug development, the company opted to retract its 2025 target of a 32% operating profit margin.
The SAN share price has not been able to recover after the company’s announcement of guidance withdrawal. Over the last 12 months, the stock has lost over 16% in trading.
Since then, the company’s CEO, Paul Hudson, has been working to rebuild investor confidence in the company’s drug pipeline. Hudson expressed his confidence in Sanofi’s innovative drug business and believes it can operate independently without relying on the consumer products business. In December 2023, Hudson boasted about the 12 drugs that are currently in development. According to the company, nine of these 12 medicines and vaccines have a sales potential ranging from €2 billion and €5 billion.
Nevertheless, this was insufficient to boost the stock, as investors remained unmoved by the long-term sales projections.
What is the Stock Price Forecast for Sanofi?
As per the TipRanks consensus, SAN stock has received a Moderate Buy rating, backed by seven Buys, four Holds, and one Sell recommendation. The average Sanofi share price target is €98.28, which is 15.3% above the current trading levels.
