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Cautious Hold Rating on Sanofi Due to Safety Concerns and Limited Growth Prospects for Qfitlia

Cautious Hold Rating on Sanofi Due to Safety Concerns and Limited Growth Prospects for Qfitlia

TD Cowen analyst Steve Scala maintained a Hold rating on Sanofi (SNYResearch Report) today and set a price target of $67.00.

Steve Scala has given his Hold rating due to a combination of factors related to Sanofi’s recent developments. The approval of Qfitlia, a treatment for hemophilia A and B, comes with significant considerations, including a Black Box warning for thrombotic events and gallbladder disease, as well as the necessity for frequent monitoring of patients. These safety concerns and the need for ongoing assessments could limit the drug’s uptake and impact its market potential.
Additionally, while Qfitlia is expected to see strong use in a specific subset of hemophilia B patients, competition in the market and the anticipated cap on revenue potential at approximately €350 million by 2030 suggest limited growth prospects. These factors, combined with the complexities of the drug’s administration and monitoring requirements, contribute to the cautious outlook reflected in the Hold rating.

In another report released on March 21, Goldman Sachs also initiated coverage with a Hold rating on the stock with a $65.00 price target.

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