Sanofi (SNY), said on Friday that the vaccine it is developing with AstraZeneca(AZN) has significantly reduced the chance of babies being hospitalized for RSV. Sanofi's stock could rise as a result.
The real-world research collected data from over 8,000 babies born across France, Germany and Britain. The study found that babies who received the Sanofi-AstraZeneca drug nirsevimab, also known as the investigational name, were 83.2% more likely to be hospitalized for respiratory syncytial viruses, or RSV.
It can be deadly or serious in infants or older adults with a weakened or non-existent immune system. Nirsevimab, a monoclonal antigen, is used to treat Nirsevimab. While vaccines encourage the immune system to produce antibodies that block viruses, antibodies-based drugs give patients what they need.
Sanofi's stock is just below the record high of 58.22, which was achieved in April 2022.
Sanofi Stock: RSV's Burden On Health Care
The French pharmaceutical company has presented test results for the nirsevimab drug at the European Society for Pediatric Infectious Diseases Meeting in Lisbon.
Babies who were given a single dose nirsevimab prior to their first birthday had an 83.2% lower risk of being hospitalized for RSV-related lower respiratory tract illness than those who did not receive the shot. Nirsevimab reduced the risk of severe RSV (which can be fatal) by 75.7%.
Nirsevimab has led to a 58% decrease in hospitalizations for lower respiratory tract diseases. This is good news for Sanofi's stock.
Sanofi stated in a press release that the burden on health systems would be significantly reduced if all babies received nirsevimab. According to the company, RSV-related costs amounted to $5.26 billion dollars in 2017.
Rivalry between Pfizer and RSV vaccine
Sanofi, AstraZeneca and Pfizer are all in the same ballpark. Pfizer has been studying a vaccine for pregnant women. The shot would be given to pregnant women in the second or third trimester. The mother's antibodies would theoretically pass to the baby through her blood.
Pfizer's study concluded that its maternal vaccine was 81.8% effective against severe lower respiratory disease caused by RSV during the first 90-days of a child's life. The effectiveness of the shot dropped to 69.4% after six months. Sanofi's stock fell a tiny bit on November 1 after Pfizer revealed its test results.
The Food and Drug Administration has designated both shots by Pfizer and Sanofi/AstraZeneca as breakthrough therapies. They could be a significant improvement over the drugs currently available. Synagis, a monoclonal anti-RSV antibody, is the only way to prevent RSV today. It's given monthly for five months.
RSV cases increased dramatically last year, largely due to the relaxation of the social-distancing measures that had kept Covid in check. The health officials are preparing for a possible RSV surprise in the winter. GSK (GSK), Pfizer, and Moderna (MRNA), are all chasing after GSK's vaccine. Infants may be the next target. This could boost both Sanofi and Pfizer stocks.
Thomas Triomphe said that this winter, the rate of RSV-related hospitalizations for infants was higher than in pandemic and pre-pandemic periods. The (study) Harmonie showed the impact of nirsevimab on pediatric hospitalizations. It also illustrated its importance to infants, families and public healthcare.
Sanofi Stock Broke Recently
MarketSmith.com reports that Sanofi stock surpassed a cup with handle base and a buying point of 50.03 at the end of March. The shares are now above the 50.03-52.53 buy zone.
Sanofi's stock is rated 90 by both IBD Digital and the Relative strength. The stock is now in the top 10% for both fundamental and technical metrics as well as performance over the past 12 months.