Why Sanofi stock was mighty healthy today

Although the latest news from the lab has been mixed for the pharmaceutical company Sanofi (SNY 2.26%) on Tuesday, investors gave the company the benefit of the doubt. They sent the stock price up more than 2% on the day, mirroring the more than 2% decline of S&P 500 index.

1 out of 3 attempts was a success

Sanofi has published readings from three phase 3 studies of its multiple sclerosis (MS) treatment tolebrutinib. In the first study, the drug met its primary objective of delaying the time to onset of confirmed disability progression in patients with non-relapsing secondary progressive MS (nrSPMS) compared to a placebo.

That was the good news. The not-so-good news came from the other two trials testing tolebrutinib in relapsing MS. Sanofi said the drug did not demonstrate significance in its primary endpoint of reducing the annual relapse rate compared to the company’s Food and Drug Administration (FDA)-approved drug Aubagio.

The results were positive enough for company management to become optimistic about the drug’s future. Sanofi quoted Houman Ashrafian, its head of research and development, as saying it “represents an unprecedented discovery as a potential treatment option for the first disease with clinically significant benefit in accumulating disability.”

Determined to win approval

In a later interview with news site Fierce Biotech, Ashrafian said Sanofi still aims to get FDA approval for tolebrutinib. The company is encouraged by the drug’s performance in fighting nrSPMS. Management has previously stated that the treatment has the potential to be a blockbuster drug.