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Special Situations & Volatility Investor, Wall Street Background
Sanofi is a strong buy at about $46 because Dupixent looks more durable than the market assumes, and the stock trades at roughly a 40% discount to the industry. Dupixent, about 40% of revenue, beat expectations by 8%, and Sanofi argues biosimilars won't arrive before 2033 rather than 2030, with a monthly version due around 2030 to extend the franchise. Sales beat by 3%, EPS by 6%, and 2026 guidance was reaffirmed. The main threat is Apogee's rival drug dosed twice a year. x.comÂ
Regeneron could benefit as managers rotate from AI into lagging sectors. UBS upgraded it to Buy and lifted its target from $660 to $978, arguing its drugs lined up to replace Dupixent are worth more than Wall Street expects. x.com x.comÂ
Eli Lilly should see further positive revenue revisions as it expands the weight-loss market by reducing gastrointestinal side effects and lowering treatment costs. Strong demand for Mounjaro and Zepbound drove a second FY2026 revenue guidance raise in three months, to $91B-$92B from $85B-$87B. Lilly Direct and the Medicare Bridge program for seniors aim to make treatment cheaper. At 29x 2027 earnings against 15% revenue and 20% EPS growth projected for 2027-30, Lilly still looks cheap. x.comÂ
Sandoz is entering a golden decade for biosimilars as innovator drugmakers face their biggest patent cliffs in decades. Q2 net sales rose 9% to $3.01 billion, slightly above the $2.99 billion consensus, and biosimilar sales rose 22% at constant currencies after 18% in Q1, a trend the company expects to continue all year. Biosimilars sell much cheaper because they carry little R&D cost, and Sandoz benefits as drugmakers such as former parent Novartis lose exclusivity. x.comÂ
