Sanofi Delivers Strong Q3 Earnings, Outperforming Expectations
Sanofi SA, a leading pharmaceutical giant, has announced impressive third-quarter results, exceeding analysts’ forecasts and showcasing the company’s robust growth trajectory. The French drugmaker reported a 14.4% year-over-year increase in business operating income, reaching €4.61 billion ($4.99 billion), and a 19.9% rise in constant currency.
Driving this impressive performance was a surge in sales, hitting €13.44 billion ($14.79 billion), surpassing the consensus estimate of $13.97 billion. This represents a 12.3% year-over-year growth and a 15.7% increase on a constant currency basis. Key contributors to this success include the continued stellar performance of Dupixent, the company’s blockbuster eczema treatment, alongside strong contributions from new pharmaceutical launches, vaccines, and its consumer healthcare division, Opella.
Dupixent Remains a Powerhouse
Sanofi’s flagship eczema drug, Dupixent, continues to be a major revenue driver, demonstrating its enduring market dominance. Sales of Dupixent surged 23.8% year-over-year to €3.48 billion, solidifying its position as a key growth engine for Sanofi. This remarkable performance comes amidst the recent FDA approval of Dupixent for treating smoker’s lung disease, indicating a potential expansion of the drug’s therapeutic applications.
New Pharma Launches Fuel Growth
Sanofi’s recent investments in new pharmaceutical products are also paying off handsomely. The company reported a remarkable 67.1% increase in sales from new launches, reaching €727 million. Key contributors to this success include Altuviiio, a treatment for hemophilia, Nexviazyme, a therapy for Pompe disease, and Rezurock, a medication for chronic graft-versus-host disease.
Vaccines Contribute to Positive Results
Sanofi’s vaccine portfolio also played a significant role in the company’s strong performance. Vaccine sales climbed 25.5% year-over-year to €3.8 billion. This growth was driven by the phasing of flu sales and the strong performance of Beyfortus, a respiratory syncytial virus (RSV) vaccine. Beyfortus sales reached €645 million, bolstered by early deliveries in the United States and expansion into new markets. This expansion was facilitated by increased manufacturing capacity secured through a collaboration with AstraZeneca, ensuring a robust supply of Beyfortus.
Opella Contributes Steady Growth
Sanofi’s consumer healthcare business unit, Opella, delivered consistent growth, generating €1.3 billion in sales, representing an 8% increase.
Positive Outlook for 2024
Sanofi has provided an updated outlook for 2024, reflecting its strong business performance. The company anticipates business EPS to grow at least at a low single-digit percentage at constant exchange rates (CER), excluding Opella. This updated guidance showcases Sanofi’s confidence in its continued growth trajectory. The company remains committed to the success of Dupixent, projecting sales of around €13 billion in 2024. While anticipating a slight decline in flu shot sales due to lower vaccination rates, Sanofi expects robust growth in overall vaccine sales, projecting high single-digit growth compared to its previous estimate of mid-single-digit growth. The company also forecasts Beyfortus sales in the fourth quarter to mirror the strong performance seen in the third quarter.
This positive outlook suggests that Sanofi is well-positioned for continued success, driven by its innovative portfolio of products, strategic partnerships, and commitment to delivering value to patients and investors.