Sanofi

Note: This is a daily stock update and the information stands true as of 25/09/24, 09:00 CEST.

Company Update:
Sanofi has received bids for its consumer healthcare arm (now named as Opella) from two investment firms, CD&R and PAI, as per Bloomberg. While no price was disclosed, it seems that those bids could value Opella at €15bn or more. This is significantly below our gross asset value estimate of €21.6bn.

Expert Opinion:
The decision to spin off the consumer business is attractive in our opinion and will reduce the discount. Even on the back of a revised valuation of €15bn for Opella, our SOTP would leave more than 15% upside which I still view as attractive. Share performance has been strong and with PE24 and 25 at 17.2x and 14.3x, valuation is now more in line with historical level and also in line with the sector (excl. Novo and Lonza). I still believe Roche offers a more attractive risk reward profile.

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