Sanofi (ENXTPA:SAN): Evaluating Valuation After Positive Dupixent Trial Results and FDA Priority Review

Sanofi (ENXTPA:SAN) reported positive phase 3 results from the LIBERTY-AFRS-AIMS study, with Dupixent showing strong improvements for allergic fungal rhinosinusitis. The FDA’s recent acceptance for priority review also adds to the momentum.

See our latest analysis for Sanofi.

Sanofi’s recent clinical wins and regulatory milestones have brought renewed attention to the stock, giving the share price a boost. The stock is up 2.58% over the last day and more than 7% across the past month. While momentum has picked up in the short-term, it is worth noting that the one-year total shareholder return remains slightly negative. However, long-term investors have still seen a nearly 28% total return over five years.

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With the stock recently climbing on clinical results and regulatory progress, the key question for investors is whether Sanofi’s current valuation still leaves room for upside, or if the market has already factored in future growth prospects.

Most Popular Narrative: 16.7% Undervalued

Sanofi’s narrative fair value is set well ahead of its last close, suggesting fundamental optimism around future performance. The stage is set for bold growth assumptions to be tested against the realities of drug development and operational execution.

Sanofi's ongoing focus on innovative product launches and its strong R&D pipeline, highlighted by accelerating investments, multiple Phase III readouts through 2026, and continued expansion of biologics (e.g., Dupixent, amlitelimab), position the company to capture higher demand for chronic disease treatments in a world with an aging population, supporting robust long-term sales growth and EPS upside.

Read the complete narrative.

Curious which core assumptions back up this ambitious valuation? The narrative is betting big on persistent pipeline momentum, expanding margins, and a premium earnings profile. Want the full story behind these powerful expectations? See what’s fueling the consensus; some of the projections might surprise you.

Result: Fair Value of $106.85 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent pricing pressures in vaccines and any late-stage pipeline setbacks could quickly challenge the underlying growth assumptions for Sanofi’s current valuation.

Find out about the key risks to this Sanofi narrative.

Build Your Own Sanofi Narrative

If you have your own perspective or want to dig deeper into the numbers, why not build your view in just a few minutes? Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Sanofi.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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