Sanofi's Dupixent Sales Surge, but Profits Fall Short Amid R&D Expenses

Sanofi's Q2 sales rose 10% to €9.9bn, driven by a 21.1% increase in Dupixent sales to €3.8bn. However, profits fell short of expectations due to higher R&D expenses, which jumped 17.7% to €1.9bn. The company expects high single-digit annual sales growth and confirmed its guidance for a strong business EPS rebound.

Sanofi (SNY) reported a robust second-quarter (Q2) performance, with net sales rising 10.1% to €9.9 billion, driven by a 21.1% increase in Dupixent sales to €3.8 billion. However, the company's earnings fell short of expectations due to higher research and development (R&D) expenses, which jumped 17.7% to €1.9 billion. Despite the profit misses, Sanofi expects high single-digit annual sales growth and confirmed its guidance for a strong business EPS rebound [1].

The company's pharmaceutical launches increased sales by 39.8% to €0.9 billion, led by the strong performance of ALTUVIIIO. Vaccines sales also increased by 10.3% to €1.2 billion, primarily due to the rollout of Beyfortus in international markets. Dupixent, a biologic drug for various indications including atopic dermatitis and chronic obstructive pulmonary disease (COPD), continues to perform well, with sales rising 21.1% to €3.8 billion.

Sanofi's R&D expenses increased by 17.7% to €1.9 billion, while selling, general, and administrative expenses rose by 7.8% to €2.3 billion. The company reported a business EPS of €1.59, up 8.3% at constant exchange rates (CER) and 1.9% reported. The IFRS EPS was €3.24, up 264.0% compared to the previous year [1].

The company also announced several acquisitions and regulatory approvals, including the acquisition of Blueprint in rare diseases and the regulatory approval of MenQuadfi meningitis vaccine in the United States. Sanofi expects to complete its €5 billion share buyback program by the end of 2025, having already repurchased 80.3% of the shares [1].

Sanofi's stock price declined following the earnings report, with the stock down 2.8% in after-hours trading. The company's Q2 earnings per American depositary share (EPS) of 90 cents missed the Zacks Consensus Estimate of 96 cents per share. However, the company's high single-digit sales growth guidance for 2025 suggests a positive outlook for the rest of the year [2].

References:
[1] https://www.sanofi.com/en/media-room/press-releases/2025/2025-07-31-05-30-00-3124660
[2] https://www.nasdaq.com/articles/sanofi-q2-earnings-sales-miss-2025-top-line-view-raised-stock-down