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JimVanMeerten (67.47)

Profits in vaccines

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September 24, 2010 – Comments (1) | RELATED TICKERS: SNY

This morning I added Sanofi-Aventis (SNY) to the Barchart Van Meerten New High portfolio  They are a global pharmaceutical company that contributes to enhance life by providing medicines, vaccines, and integrated health care solutions adapted to local needs and means primarily in Europe and the United States. The company is engaged in the research, development, manufacture and marketing of health care products. Its strategy is built around three priorities to reach its goals and ensure sustainable growth. The priorities are: increasing innovation in Research and Development, adapting Group structures to future challenges and seizing external growth opportunities. Sanofi-Aventis specializes in six therapeutic areas: thrombosis, cardiovascular, metabolic disorders, oncology, central nervous system (CNS) and internal medicine. The Company offers vaccines in five areas: pediatric combination vaccines, influenza vaccines, adult and adolescent booster vaccines, meningitis vaccines, and travel and endemic vaccines. Sanofi-Aventis is headquartered in Paris, France.

Two of the drugs they produce are two of the most widely marketed drugs on the planet.  The A/H1N1 flu vaccine and Plavix.  I can't watch an evening of TV without seeing several Plavix commercials.  Since I had my flu shot my cravings for corn and mud baths are now under control.

The stock is on a recent climb with 19 new highs in 20 session for a 19.82% price gain last month.  Barchart has a 96% buy signal with the stock trading around 33.95 above its 50 day high of 30.27.  The stock has a 76.93% 14 day Relative Strength Index and is rising.

General investor sentiment is high with the CAPS members on Motley Fool voting 882 to 41 that the stock will beat the market and the All Stars are in agreement 329 to 11.  The Wall Street columnists that Fool follows had 14 positive articles on the stock.

Their major markets of the US and Europe means they are marketing in an area of both public and private health care that can afford their products.  With all the recent interest in flu vaccines and diabetes drugs this stock should be a winner.

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email mailto:JimVanMeerten@gmail.com




Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

1 Comments – Post Your Own

#1) On September 24, 2010 at 12:29 PM, ikkyu2 (99.35) wrote:

Clopidogrel comes off-patent in November 2011 and there are many generics factories worldwide that are already making it.  Sanofi completely dropped the ball on the H1N1 vaccine; by the time they had ramped production up enough to make a dent in revenues, the H1N1 epidemic was over and 200 people had died.  So that wasn't great execution.  They're selling H1N1 vaccine now, but this year's flu season will have a different strain.

The real question is how does Sanofi's pipeline look?  A lot of major pharm companies have really anemic pipelines, and regulatory risk looms in the background.  Pharma companies are not the cash cow they once were and with the advent of pharmacy benefit managers I believe there are real headwinds to the whole sector. 

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