Sanofi SA share price up, reports successful dengue vaccine test

Sanofi SA, the fifth-largest pharmaceutical company in the world, announced the final phase of the efficacy study of its dengue vaccine had been successful, achieving a clinically significant and commercially promising result.

The Paris-based company noted that the results will be thoroughly examined by external experts before a publication is due, but pointed to a 60.8% overall efficacy of the vaccine and 80.3% reduced risk of hospitalization.

“For the first time ever, after 20 years of research and industrial commitment, dengue is set to become a vaccine preventable disease,” said Olivier Charmeil, President and Chief Executive Officer, Sanofi Pasteur.

According to the World Health Organization, dengue is a threat to nearly half the world’s population, and each year an estimated 500 000 people, including children, have severe dengue requiring hospitalization. About 2.5% of them die, and there is no approved vaccine.

The official presentation of the test results will be held at the American Society of Tropical Medicine and Hygiene (ASTMH) Annual Meeting in November.

The new vaccine may have peak sales of about €1bn by 2025, Peter Verdult, an analyst at Citigroup Inc., said in a report cited by Bloomberg, adding a massive chunk to Sanofis €3.7bn in total annual sales.

Filing for approval may begin early next year and cover more than 100 countries, and Sanofi aims to sell the first doses in the second half of 2015.

Sanofi Pasteur, the vaccines division of Sanofi, is the global leader of the vaccines market, supplying more than 1bn doses of vaccine to more than 500 million people each year.

Sanofi SA was up 1.07% to trade at €84.66 (~$111.34) at 12:22 GMT today, logging a one-year growth of 16.79%. As of the previous closing price, Sanofi was valued at €110.82bn (~$145.74bn). According to a Financial Times survey, 27 analysts offering 12 month price targets for Sanofi SA have a median target of €86.00, with a high estimate of €102.00 and a low estimate of €40.27. The median estimate represents a 2.67% increase from the last price of €83.76.