Sanofi (NASDAQ:SNY) becomes the latest drugmaker to lower the list prices for its insulin products in the United States, starting next year. The price of its most-prescribed insulin, Lantus, will decline by 78%, while Apidra, Sanofi’s fast-acting insulin, will see a 70% price cut.
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In addition, the company will place a cap on monthly out-of-pocket costs at $35 for people who have private insurance.
Meanwhile, the patients who have insurance, however, are not anticipated to benefit from the price reduction because they have a fixed monthly co-pay. However, the move may be a blessing for uninsured patients because they often have to pay the full list price.
It is worth highlighting that Eli Lilly (LLY) and Novo Nordisk announced similar large reductions in their insulin product prices earlier this month.
These price cuts are a result of the U.S. Government’s efforts to cap monthly insulin costs at $35 for Medicare beneficiaries under its Inflation Reduction Act.
Is Sanofi a Good Stock to Buy?
Strong momentum in demand for Sanofi’s drugs, especially Dupixent, is encouraging. Further, the company has an impressive dividend history. Its current dividend yield of 6.5% is much higher than the sector’s average of 1.5%. Lastly, Sanofi’s latest deal to acquire Provention Bio (PRVB) should help boost Type-1 Diabetes drug offerings.
Overall, SNY stock has a Moderate Buy consensus rating based on two Buys. The average price target of $65 implies 35.1% upside potential. Shares of the company have gained 2.4% over the past three months.
