Jefferies reiterates Buy rating on Sanofi stock, cites safety profile

Published 04/09/2025, 14:30
Jefferies reiterates Buy rating on Sanofi stock, cites safety profile

Investing.com - Jefferies maintained its Buy rating and EUR120.00 price target on Sanofi (NASDAQ:SNY) stock, currently trading at $49.89. According to InvestingPro data, analysts maintain a "Strong Buy" consensus with targets ranging from $56 to $67.80, suggesting the stock is currently undervalued. The company’s "GREAT" Financial Health Score of 3.07 out of 5 underscores its solid market position.

The research firm noted that targeting OX40L appears to avoid T-cell depletion, potentially bypassing the fever and chills associated with competitor Amgen’s OX40 rocatinlimab treatment.

Pooled data for Sanofi’s amlitelimab showed very low rates of fever/pyrexia at 1.1% compared to 0.7% in the placebo group, with chills occurring in just 0.4% of treated patients versus 0% for placebo.

By contrast, Amgen’s Phase III HORIZON study results presented recently revealed much higher placebo-adjusted rates of 9% for fever/pyrexia and 5% for chills, primarily occurring within 48 hours after the first dose.

These findings represent the lower end of rates observed in Amgen’s Phase IIb trials, which previously showed 9-15% for fevers and 4-22% for chills, while Sanofi’s original Phase II atopic dermatitis study showed no elevated risk of these side effects.

In other recent news, Kymera Therapeutics announced a shift in its development programs, affecting its collaboration with Sanofi . Sanofi has decided not to advance the Phase 2 IRAK4 degrader KT-474 for atopic dermatitis and hidradenitis suppurativa, opting instead to focus on the next-generation degrader KT-485, with Phase 1 trials anticipated to start in 2026. Following this announcement, Jefferies adjusted its price target for Kymera from $66.00 to $64.00, though it maintained a Buy rating.

Meanwhile, Sanofi has also seen a price target adjustment from BofA Securities, which lowered it from EUR8.48 to EUR8.40. This change comes in response to mixed results from Phase III trials of itepekimab for chronic obstructive pulmonary disease. BofA Securities highlighted the importance of the upcoming Phase III results for amlitelimab in atopic dermatitis, with data expected in the third quarter. Both companies are navigating significant developments in their drug pipelines, which have influenced analyst evaluations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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