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Sanofi (SNY.US) Q3 profit surges, raises annual profit forecast and speeds up drug development

Market IntelFriday, Oct 25, 2024 3:00 am ET

1min read

French pharmaceutical giant Sanofi's (SNY.US) third-quarter profit rose on seasonal demand for vaccines and strong performance of its blockbuster drug Dupixent, according to the company's earnings report. The company's third-quarter earnings per share reached â‚¬2.86, topping analysts' expectations, mainly due to the early sales of flu and respiratory syncytial virus vaccines. Sanofi's net profit rose to â‚¬2.82bn from â‚¬2.53bn in the same period last year. Sanofi has raised its 2024 EPS guidance to at least low single-digit percentage growth, excluding the sale of its consumer health unit Opella.

The company expects currency fluctuations to have a negative impact of -5.5% to -6.5% on its 2024 commercial EPS. In addition, Sanofi is in exclusive talks with US acquisition firm Clayton Dubilier & Rice to sell its consumer health unit Opella and has raised its annual profit forecast.

Sanofi's chief executive Paul Hudson is accelerating the company's drug development plans, particularly driving sales of drugs such as Dupixent, which saw a 24% increase in sales to â‚¬3.5bn in the quarter.

Sanofi is also advancing a dozen potential blockbuster drugs through clinical trials, a strategy similar to rivals such as Novartis, focusing on cutting-edge therapies while shedding older drugs and consumer health units.

The growth in the vaccine business was partly driven by the launch of Beyfortus, a vaccine to protect infants from respiratory syncytial virus.

Sanofi's chief financial officer Fran ois-Xavier Roger expressed optimism about competition with Merck's respiratory syncytial virus monoclonal antibody vaccine, saying Sanofi's vaccine is more effective and has evidence of protection in tens of thousands of infants.

Sanofi's focus in recent weeks has been on the sale of its consumer health business Opella, which Roger said would provide the unit with "huge opportunities" for independent operations and make Sanofi a pure biopharmaceutical company.

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