Sanofi takes a bold step by acquiring Blueprint MedicinesSanofi Makes Bold Move with $9.5 Billion Acquisition of Blueprint Medicines
By Ion Jauregui – Analyst at ActivTrades
French pharmaceutical giant Sanofi (EPA:SAN) has kicked off 2025 with a bold strategic move: the acquisition of U.S.-based biotech Blueprint Medicines (NASDAQ:BPMC) for up to $9.5 billion. The deal, expected to be the largest healthcare acquisition in Europe this year, includes an upfront payment of $129 per share, plus contingent value rights (CVRs) tied to the commercial success of BLU-808, a treatment for systemic mastocytosis.
With this acquisition, Sanofi secures full control of Ayvakit, currently the only approved treatment for this rare disease, thereby strengthening its position in the lucrative rare diseases segment.
Strong Financial Momentum in 2024
Sanofi’s latest annual results confirm the company’s solid trajectory. In 2024, the group generated €41.081 billion in revenue, representing a 11.3% increase at constant exchange rates. Adjusted net income reached €8.912 billion, up 4.1%, despite cost pressures in some segments.
Flagship drug Dupixent, developed in partnership with Regeneron, brought in €13.072 billion, accounting for nearly a third of total group revenue. The vaccines segment also performed strongly, led by Beyfortus sales, with a growth of 13.5%.
Favorable Market: Technical Analysis
Sanofi shares have also been enjoying a positive trend. As of yesterday’s close, the stock was trading at €86.77, with a bullish pre-market and not far from its annual high of €106.20. From May to May, the stock gained as much as 47.43% year-over-year, reaching all-time highs. After the announcement of U.S. tariff policies, the stock corrected nearly 21%, but quickly recovered from a key support level at €82.51, now hovering near €87 with a positive outlook.
The only technical concern lies in the bearish crossover of moving averages observed earlier this year. Should this acquisition reinforce Sanofi’s fundamentals, the resistance level around €93.70 may soon be breached and potentially become new support. Failure to do so, however, could see a short-term pullback toward €67.78. What’s clear is that the company is committed to maintaining its year-over-year growth trend and pushing for new record highs.
Key technical levels:
• Support: €79.80 (current point of control and mid-range zone)
• Immediate resistance: €106.20 (52-week high)
• RSI: 37.45 – signaling an oversold zone, possibly ready for recovery
• Moving Averages: Showing a downward trend this quarter, requiring a shift to resume the bullish path
From a fundamental perspective, the stock trades at an estimated P/E ratio of 12.7, which still offers value considering its earnings outlook and a solid dividend yield of 3.8%.
Share Buyback and Clear Roadmap
As part of its shareholder value strategy, Sanofi has launched an ambitious €5 billion share buyback program, equivalent to 4% of its capital. This move reflects management’s confidence in the company’s performance and comes amid strong cash flow generation.
For 2025, Sanofi projects mid-to-high single-digit revenue growth and a low double-digit increase in adjusted net income.
Conclusion: Innovation, Profitability, and Global Ambition
The acquisition of Blueprint Medicines not only marks the largest healthcare deal in Europe this year, but also cements Sanofi’s strategic shift: focusing on innovative treatments, specialized markets, and global expansion. With a solid financial foundation, a technically strong stock, and a more focused product portfolio, Sanofi is emerging as a major player in the healthcare sector for 2025.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
