Sanofi-Aventis (ADR) (SNY)

Solid financials. Balanced markets make is less vulnerable to fluctuations in US market. Finally, even without gang-buster success with the HIV vaccine, they have some great new products.

One such product is Multaq. Working in Cardiology, I see first hand how this medication is swooping in to take the place of the most widely used heart rhythm medicines. Study's show that it's equally as effective as the best one out there on the market (Amiodarone) without the major (and minor) side effects and without the drug interactions. It is safe in elderly populations and I expect to see its indications expanded.

Hopefully in 2010 it will become a tier two drug and when that happens usage is going to explode.

finviz.com

FC

overvalued.

Major breakthrough in HIV vaccination.
If they get it better than 30% effective and more like 90% effective it will be pretty much mandatory for the world, ch- ching.

HIV vaccine shows promise for the first time.

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staples. less cyclical. stays up well in downtimes.
play on Euro. (french)... little debt... good dividend

Strong R & D going on for different drugs. They are part of a group of drug companies working on the swine flu virus vaccine. That alone will lift the stock higher.

Sanofi has a very favorable market price compared to the free cash flow it generates from operation income. The growth is moderate, but has not been affected doing the recession. Yet the price is floating around 25-35% below what it was a few years ago.

If you do a discounted cash flow analyze with a 10-12% discount rate, you can maintain a pretty good margin of safety at the current price, even at a 4-5% growth rate.

Only 33% of revenue is generated from the US, which means Sanofi would be less affected by the Obama health care plan. It also gives US investors an excellent opportunity to protect their assets, if they believe the USD will come under pressure when the government is forced to created massive inflation in an attempt to reduce the budget deficit.

Why? a) Dividends, b) new products in development=more earning potential, c) Buffett who? Dodge & Cox owns shares and that speaks volumns to me (OK, "c" was lame, but I did it anyway).

This Berkshire holding boasts a substantial dividend yield, and has the necessary financial strength to weather a short to medium term "double dip" in the economy.

UBS’s Amusa has a “sell” rating on Sanofi and has a “buy” rating on Novo Nordisk A/S, which produces a rival diabetes treatment called Levemir.

“We have to be careful not to taint a medicine which helps many patients, but if Sanofi have data we should see it,” said Kevin Scotcher, an analyst at Liberum Capital Ltd. in London. Sanofi’s Origin study, which is investigating the cardiovascular safety of Lantus, is likely to be completed in 2012, Bessaud said.

Wide product range, pipeline, R&D, cash holdings

Smart management

Great pipeline --- taxotere is everywhere

Current drug portfolio under threat from generics. This is I believe is reflected in share price. A number of recent acquisitions to target new drugs and new markets. At current price, valuation is compelling. If only one of the new drug buys is a blockbuster, sny is going to get a big rating change.

undervalued.

Warren Buffet bought at $44.
This is a good French pharma company with a good dividend that they can afford to pay.
Long hold...

solid pipeline and low debt - Total S.A. has a large stake

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