Key insights
- Raymond James reiterated a Strong Buy on Dianthus Therapeutics following a competitor's (Sanofi) Phase 3 trial failure for a similar drug. This setback removes a key competitor, potentially clearing Dianthus's path to approval for its CIDP treatment. The analyst firm believes Dianthus's drug has higher potency and is likely to show superior response, increasing its market advantage.
Investing.com - Raymond James reiterated a Strong Buy rating and $125.00 price target on Dianthus Therapeutics (NASDAQ:DNTH) following a competitor’s clinical trial failure.
Sanofi announced it is stopping its Phase 3 study evaluating riliprubart in refractory CIDP patients due to an interim readout analysis suggesting lack of efficacy. Riliprubart is a C1s inhibitor and direct competitor to Dianthus’s claseprubart. The pharmaceutical giant’s stock is currently trading near its 52-week low at $43.69, and according to InvestingPro analysis, appears undervalued with a Fair Value of $63.20.
Sanofi is running two Phase 3 studies to support a potential BLA submission in CIDP, with the other Phase 3 comparing riliprubart versus IVIG with readout pending. Dianthus is running a single placebo-controlled study to support a potential sBLA for claseprubart in CIDP.
Raymond James said Dianthus now has an opportunity to achieve approval before Sanofi in CIDP. The firm said this development could lead to removal of the lead competitor in development from the field.
The firm said it believes claseprubart’s higher potency is likely to lead to better response in Phase 3. Raymond James noted Dianthus’s interim update from Part A and subsequent downsizing of the overall Phase 3 program suggests claseprubart is likely to show superior response in CAPTIVATE. InvestingPro subscribers have access to over 10 additional exclusive tips on Sanofi, including insights on its 27 consecutive years of dividend increases.
In other recent news, Sanofi reported its Q1 2026 earnings, significantly surpassing market expectations. The company achieved an earnings per share (EPS) of $2.17, well above the forecasted $1.79, representing a 21.23% surprise. Additionally, Sanofi’s revenue for the quarter reached $12.14 billion, exceeding the anticipated $10.25 billion. These results highlight a strong financial performance for the company. In corporate developments, Sanofi announced the appointment of Belén Garijo as Chief Executive Officer, effective May 1, 2026. Garijo, currently the CEO and President of Merck, will bring her extensive experience to the role. Furthermore, China’s commerce ministry recently held a roundtable with over 50 foreign pharmaceutical firms, including Sanofi, to discuss industry-related matters. These developments reflect Sanofi’s ongoing strategic initiatives and engagement in the global pharmaceutical sector.
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