Sanofi Raises 2024 Profit Outlook On Strong Q2 Earnings, Blockbuster Drug Dupixent Sees Strong Demand
On Thursday, Sanofi SA (NASDAQ:SNY) reported a second-quarter business operating income of 2.8 billion euros ($3.03 billion), up 3.2% year-over-year and 8.3% in constant currency.
The company reported second-quarter sales of $11.57 billion (10.75 billion euros), beating the consensus of $11.37 billion. Sales increased 7.8% year over year and 10.2% on constant currency.
Also Read: Europe Approves Sanofi/Regeneron’s Dupixent for ‘Smoker’s Lungs’ A Month After US FDA Asks For Data.
The French drugmaker reported adjusted EPS of $0.93 (1.73 euros), beating the consensus estimate of $0.86, down 0.6% reported and up 4.0% at CER.
Sales of Dupixent, Sanofi’s blockbuster eczema drug, rose 29.2% to 3.30 billion euros. Reuters notes that the drug on which Sanofi partners with Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has long been a growth driver.
Despite expanding its use for other conditions, Sanofi faces shareholder concerns about its heavy reliance on the drug.
Sales of another new medicine, Altuviiio for hemophilia, were 158 million euros.
Sales of Beyfortus, a treatment for RSV infection, generated 18 million euros, reflecting the global vaccine seasonality towards the second half-year.
Sanofi sells the drug in collaboration with AstraZeneca Plc (NASDAQ:AZN).
Vaccine sales decreased by 4.8% to 1.14 million euros, which was impacted by the absence of COVID-19 sales.
Guidance: For 2024, Sanofi expects business EPS to be stable at constant currency, compared to earlier expectations of a low single-digit business EPS decline.
The company reaffirms that Dupixent will deliver around 13 billion euros in 2024 sales. Vaccine sales are expected to grow mid-single-digit in 2024.
Sanofi shares an ambition to reach blockbuster status (sales over $1 billion) for its Beyfortus vaccine. Sanofi expects the 2024 gross margin to decline slightly.
Price Action: SNY stock is up 3.73% at $53.11 during the premarket session at the last check on Thursday.
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