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Source: PhotobyTawat, Shutterstock
Sanofi (SNY:US or NASDAQ: SNY) will develop a C$ 925-million flu vaccine production facility in Toronto, employing 1,225 people and enhancing Canada's access to flu vaccines, according to the federal government statement on Wednesday, March 31. On the back of this announcement, the pharma stock rose almost 1 per cent, and its one million shares changed hands yesterday.
The Canadian government has agreed to invest C$ 415 million in the venture, and the provincial government will contribute C$ 55 million. Sanofi will invest at least C$ 79 million annually to fund the country’s research and development (R&D) program.
The Paris-headquartered healthcare company already develops vaccines in Toronto, such as routine kids’ vaccines that are utilized across the country and exported. However, this is an important project in collaboration with the federal and provincial governments, wherein the company will manufacture its seasonal and pandemic influenza drug, Fluzone.
The government stated that the facility could produce enough flu vaccine shots for the Canadian citizens within six months after identifying the pandemic strain. The flu vaccine has already been produced at a Quebec facility, which is owned by GlaxoSmithKline, a Sanofi's rival.
Let us glance at the pharmaceutical’s price performance:
Sanofi (SNY:US or NASDAQ: SNY)
The drug manufacturer is operating in the field of immunology, oncology, cardio, etc and has a presence in over a hundred nations. Its current stock price is US$ 49.46.
It has grown 13.12 per cent in one year, outperforming the NASDAQ Composite Index, which is relatively down by 34 per cent. It is up almost 8 per cent year-to-date (YTD). However, the flu vaccine stock has dropped over 10 per cent against its 52-week high of US$ 55 per common share (Set on July 16, 2020).
The 124.54-billion market cap company distributes an annual dividend of US$ 1.906 per share. Its stock delivers earnings per share of 2.01 and a dividend yield of 3.854 per cent.
Image Source: Kalkine Group @2020
The stock is also delivering an interesting return on asset of 11.25 per cent along with a 20.95 per cent return on equity.
On March 31, its Sarclisa medicine has received FDA approval in combination with dexamethasone and carfilzomib, as the joint therapy helps reducing plasma cancer death by 45 per cent.
