Sanofi sees faster profit growth on Dupixent, flu vaccine
French drugmaker Sanofi (SASY.PA) on Friday forecast faster earnings growth this year on strong demand for its bestselling drug Dupixent and for its flu vaccines.
Sanofi said in a statement that it now expects 2022 adjusted earnings per share to grow by about 16%, not taking into account an expected positive currency impact of between 9.5% and 10.5%. It had previously forecast growth of 15%.
Sanofi reported a 26.5% rise in third-quarter business operating income, or adjusted earnings before interest and tax, to 4.5 billion euros ($4.49 billion), well ahead of an average analyst estimate of 4.17 billion euros.
Sanofi shares plunged in August after disappointing trial results of a once-promising breast cancer drug candidate heightened concerns about the company’s development pipeline and investors also fretted over legal claims that heartburn drug Zantac caused cancer.
The shares have not recovered much and Credit Suisse analysts have said Sanofi is trading about one third below its European peers, relative to estimated 2023 earnings.
Finance chief Jean-Baptiste de Chatillon, who has described the discount as grossly overdone, said on Friday that Sanofi would follow through on its strategy. “We know we have some headwinds and we are there to fight them and to demonstrate to our shareholders that we can create more value,” he told journalists in a call.
Revenue from exzema and asthma drug Dupixent, jointly developed with Regeneron (REGN.O), jumped by a currency-adjusted 44.5% to 2.3 billion euros in the quarter, soundly beating an analyst consensus of 2.1 billion euros.
The company is pursuing further growth for Dupixent in inflammatory skin conditions and smoker’s lung, where keenly awaited trial data is expected in the first half of 2023.
