Sanofi Suspends mRNA Vaccine Development Amid Stiff Competition

The stock is struggling to topple its year-to-date breakeven

Deputy Editor
Sep 28, 2021 at 10:03 AM
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Sanofi SA (NASDAQA:SNY) announced that it will be suspending any further developments of its mRNA-based Covid-19 vaccine, despite positive results in its last study, as inoculations from Moderna (MRNA) and Pfizer (PFE) dominate the market. Sanofi added that it will apply the MRNA technology to vaccine development elsewhere, and focus its efforts on the protein-based Covid-19 vaccine it's developing in partnership with U.K.-based GlaxoSmithKline (GSK). 

Investors are taking the news in stride, and at last check the stock was up 0.4% at $48.17. The equity recently gapped below every single key trendline, as well as the $49 level, which has become an area of pressure this month. SNY is now trading directly below its year-to-date breakeven, though potential support at the $47.50 level is emerging just below. 

Analysts are split on SNY. Of the six in coverage, three say "strong buy" and three say "hold." Meanwhile, short interest has been on the rise, up 32.3% in the last two reporting periods, though it still makes up just a slim 0.2% of the stock's available float. 

Options traders have been overwhelmingly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SNY sports a 10-day put/call volume ratio of 6.74, which stands higher than 97% of readings from the past year. This means options traders are picking up puts at a much quicker-than-usual pace. 

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