Global pharmaceutical leader Sanofi has reported stronger-than-anticipated third-quarter earnings growth, boosted by an accelerated start to the vaccination season and solid performance across key therapeutic areas. The company’s third-quarter business operating income, adjusted for one-off items, surged by 14.4% to €4.6 billion (approximately $5 billion), outperforming the €4 billion average estimate from analysts.
In an exciting advance, Sanofi reported a 25.5% rise in quarterly vaccine sales, reaching €3.8 billion and far exceeding market expectations of €3.2 billion. This robust performance was propelled by early demand for flu vaccinations and the debut of Beyfortus, a groundbreaking therapy designed to protect newborns from respiratory syncytial virus (RSV). This early start to vaccinations, combined with key drug advancements, has positioned Sanofi as a major growth driver in the pharmaceutical industry.
“Even without the early shipments, we would still have achieved attractive quarterly growth close to 11%,” noted Francois-Xavier Roger, Sanofi’s CFO, during a media briefing.
Sanofi’s strategic focus on its core business has shown significant promise, particularly with its best-selling anti-inflammatory drug, Dupixent, which saw quarterly revenues rise by 23.8% to €3.48 billion, adjusted for currency. The treatment recently received regulatory approval to address chronic lung disease, opening new avenues for patient care and further revenue growth.
Amidst these positive financials, Sanofi is actively pursuing the sale of a 50% stake in its consumer health division, Opella, to U.S. private equity firm Clayton Dubilier & Rice, a move valued at €16 billion. The anticipated sale aligns with CEO Paul Hudson’s focus on funding clinical trials for next-generation therapeutics, signaling a sharpened commitment to prescription medicines and advanced therapies.
Reflecting on the earnings, J.P. Morgan analysts highlighted, “Given the strong set of results with a 15% beat on Business EPS, largely driven by the topline, we expect Sanofi shares to outperform by 3-5% today.”
Sanofi’s strategic divestment of non-prescription drug units comes as part of an industry-wide trend toward concentrating on high-margin prescription treatments and innovative biopharmaceuticals. The company recently announced that core business earnings in 2024, excluding Opella, are expected to grow at least at a low-single-digit rate, with stronger momentum projected for 2025.
Sanofi’s third-quarter results demonstrate the company’s agility in responding to market demands and its commitment to advancing innovative treatments for patients worldwide. As the company moves forward with transformative plans, it reinforces its position as a global leader in healthcare, focused on sustainable growth and patient-centered innovation.
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