Sanofi Says Only Those People Earlier Infected By The Dengue Virus Can Be Helped By Its Vaccine

The ambitions of the dengue vaccine from Sanofi was brought a notch down after the company declared that the vaccine would only effective for those people who had earlier been infected by the disease. This has further dented the high hopes that the maker of the drugs and well as other in the medical field had for the vaccine.

The Paris-based drugmaker said in a statement late on Wednesday that in order to avoid doctors injecting the vaccine into people who have never been infected by the dengue virus, the vaccine’s label should be updated by the regulators. For the company, there would potentially be a drop in the value of its inventories which could result in the reduction of a crucial measure of profit to the tune of 100 million euros ($119 million) during the fourth quarter and the company would have to take a charge related to that drop in the value.

There can be a resultant more severe disease in case the vaccine – called Dengvaxia, is administered on people who have never been infected with the virus, shows new analysis of long-term studies. For the first dengue vaccine in the world had earlier been predicted to yield about $840 million in sales till 2020. But now the analysts say that the estimated sale value of the vaccine, that is sold in countries ranging from Brazil to Thailand, for the same period is down to about $340 million. France’s biggest drugmaker has already been under pressure after its diabetes portfolio was criticized for pricing and the company faced pressure due to that in recent quarters. Now the company is pressurized further because of the souring outlook for the product.

The latest setback “highlights an increasing reliance on dermatitis-drug Dupixent, with rivals vying for a piece of the market,” Sam Fazeli, an analyst for Bloomberg Intelligence, said in a report. “This means that Sanofi may need M&A to acquire growth, where it’s in the queue behind Novartis and Pfizer, both with much deeper pockets.”

There was slight change in the shares of Sanofi as of 9:56 a.m. in Paris trading with values of 76.92 euros. In the last one year, a return of about 4.4 percent has been delivered by the stock which includes its dividends.

“The trajectory of certain new launches have been below our expectations,” Chief Executive Officer Olivier Brandicourt said on a conference call this month, citing Dengvaxia. 1.5 billion euros had been spent in the development of the dengue vaccine which and it hahd taken two decades to develop.

In the first nine months of the year, sales of 22 million euros ($26 million) had been generated by the vaccine.

(Adapted from Bloomberg.com)

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Categories: Economy & Finance, Strategy, Sustainability, Uncategorized

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