LONDON, Oct 27 (Reuters Breakingviews) - Sanofi (SASY.PA) investors dislike CEO Paul Hudson’s prescription to reinvigorate the pharmaceutical group’s weak valuation.
Analysts polled by LSEG expect the division to hit an EBIT of 1.6 billion euros this year.
On listed rival Haleon’s 15.6 times multiple, that business could be worth 25 billion euros.
The rest of the Sanofi business may generate EBIT of 11.4 billion euros.
The problem is that investors don’t appear to want to take the harsh medicine that leads to a cure.
Persons:
Paul Hudson’s, Ernst & Young, Sanofi, EBIT, Roche, Karen Kwok, Francesco Guerrera, Streisand Neto
Organizations:
Reuters, Sanofi, Ernst, LSEG, Novartis, Novo Nordisk, GSK, AstraZeneca, X, Unilever, Thomson