Is Sanofi (ENXTPA:SAN) Undervalued After Halting Amlitelimab Development?
Why the amlitelimab decision matters for Sanofi shareholders
Sanofi (ENXTPA:SAN) is halting development of amlitelimab for moderate to severe atopic dermatitis after a pipeline review concluded the efficacy and safety profile did not justify regulatory submissions compared with current treatments.
The company cited long term phase 3 data showing maintained clinical response and an emerging safety profile, yet still judged amlitelimab would not offer a meaningful improvement over existing atopic dermatitis options.
See our latest analysis for Sanofi.
Against this backdrop, Sanofi’s share price shows mixed momentum, with a 7 day share price return of 4.01% and a 30 day share price return of 5.85%, while the 1 year total shareholder return declined 1.32% and the 3 year total shareholder return declined 3.28%.
If this update has you rethinking healthcare exposure, it can help to widen the search and see which other companies are on the move through 127 healthcare AI stocks.
Sanofi still has a sizeable biopharma and vaccines business behind it, and the amlitelimab setback has not altered guidance. The key issue now is whether the current share price already reflects that strength.
Most Popular Narrative: 17.4% Undervalued
Analysts following Sanofi see a fair value of €96.70 per share, compared with the last close at €79.92, which frames a clear valuation gap to unpack.
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), positions 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. (Revenue, EPS)
Want to understand why this narrative still points to upside for Sanofi even after the amlitelimab decision? The fair value rests on a mix of expected revenue growth, a step up in profit margins and a lower future earnings multiple than many large pharma peers. Curious which assumptions carry the most weight in that model and how much depends on execution in vaccines and biologics rather than any single asset.
Result: Fair Value of €96.70 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this Sanofi narrative still hinges on successful R&D execution and resilience against pricing pressure, especially in vaccines and key biologics facing future patent expiries.
Find out about the key risks to this Sanofi narrative.
Another view on Sanofi’s valuation
Analysts see Sanofi as undervalued using earnings forecasts and a target price of €96.70. Yet on a simple P/E basis the stock trades at 19.9x, which is slightly higher than the 19.7x peer average and below a fair ratio of 36.9x. That mix points to both valuation risk and potential opportunity. Which signal do you trust more, the forecast-based target price or the current P/E comparison?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With both risks and rewards on the table for Sanofi, it makes sense to move quickly and weigh the evidence yourself. To see how the market is pricing that trade off, take a closer look at the 3 key rewards and 2 important warning signs.
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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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