Sanofi (SNY) stock rose 1.25% on Monday after reaching a price level of $39.98 per share on Friday. The company’s stock rose over 3.74% in the trailing 5-day period and 5.68% in the last 30-day period between May 29 and June 22.
The company’s stock is up in the last five days due to two major announcements.
Sanofi is reported to be trying to enter the cancer drug market, which has a value of $100 billion a year. The company announced the hiring of former top scientist for Roche’s oncology department, John Reed. Reed will head the company’s research operations. Roche is the market leader for oncology.
Sanofi is working on 10 medicines that are in various stages in their pipeline.
The company has acknowledged that they missed the entry into the immunotherapy market and that the company will gain an edge by combining different drugs to target cancer. Immunotherapy is expected to top $25 billion by 2021 and is the fastest cancer drug segment on the market.
Shareholders remain concerned that Sanofi may introduce new drugs into the market, but that the company will be able to do little against the likes of Roche and other leading cancer-treatment companies.
Cancer treatments make up 4% of Sanofi’s sales. Last year, the company’s cancer drug sales hit $1.7 billion, far lower than Roche’s $25.9 billion in cancer drug sales. Sanofi produced both Taxotere and Eloxatin in the 1990s, top-selling cancer drugs.
The company hasn’t introduced a new cancer drug in the past seven years.
Taxotere is reported to lead to potential permanent hair loss, according to Drugwatcher. Permanent alopecia has been experienced by past patients, with thousands of lawsuits being filed against Sanofi in and before 2017.
The company’s shareholders enjoyed increased sentiment at the end of last week when NICE recommended Dupixent for adults suffering with severe to moderate atopic dermatitis. Atopic dermatitis impacts 1.5 million adults in the United Kingdon. The approval notes that inadequate control of the condition can lead to psychological and physical burdens.
NICE estimates that 14 out of 100,000 adults suffer from moderate atopic dermatitis, with 6 out of 100,000 suffering from severe bouts of the condition.
The company announced results for their head-to-head study of Toujeo, finding that the drug met its primary endpoint to lower blood sugar levels. The drug was found to be non-inferior to insulin. Blood sugar events and incidences were reduced within the first 12 weeks of the study