Sanofi boosts annual earnings guidance as Dupixent sales surge 73% in Q2

Headline results for the second quarter:

  • Prescription drug sales: €6.3 billion ($7.4 billion), down 3.1%
  • Overall revenue: €8.2 billion ($9.6 billion; forecasts of €8.6 billion), down 4.9%
  • Profit: €7.6 billion ($8.9 billion), versus a loss of €87 million ($102 million) in the prior year

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"Even with some headwinds from the COVID-19 pandemic, we achieved business [earnings per share] growth supported by continued outstanding sales from Dupixent, a focus on efficiency and smart spending," remarked CEO Paul Hudson.

Sanofi said that profit in the quarter was boosted by a €7.2-billion ($8.5 billion) gain on a share repurchase transaction completed in May with Regeneron Pharmaceuticals.

Other results:

  • Specialty care unit: €2.7 billion ($3.2 billion), up 18%, mainly driven by the strong performance of Dupixent
    • Dupixent: €858 million ($1 billion), up 73%, with sales in the US climbing 69.5% on a constant exchange rate (CER) basis to €697 million ($819 million), boosted by continued growth in atopic dermatitis
    • Aubagio: €527 million ($619 million), up 13.1%, with growth in the US and EU led by price, demand and stocking at patient level
    • Eloctate: €169 million ($199 million), down 1.2%, with lower sales in the US due to ongoing competitive pressure
  • Diabetes unit: €1.2 billion ($1.4 billion), down 7.4%, partly due to a continued decline in average US glargine prices, as well as some destocking at the patient level in Europe
    • Lantus: €693 million ($814 million), down 8.6%, reflecting a lower average net price in the US and biosimilar competition in Europe
    • Toujeo: €239 million ($281 million), up 8.6%
  • Praluent: €73 million ($86 million), up 10.6%, with US sales climbing 45.8% on a constant currency basis, but slipping 21.2% in Europe after last year's suspension of sales in Germany as a result of ongoing patent litigation
  • Vaccines division: €927 million ($1.1 billion), down 9.2%, affected by "global confinements," including lower sales of travel vaccines, Menactra and booster vaccines due to the COVID-19 pandemic
  • Consumer healthcare: €1 billion ($1.2 billion), down 10.8%, partly due "pantry unloading and lower in-person pharmacy traffic" caused by the COVID-19 pandemic
  • Sales in China: €627 million ($737 million), down 10.2% on a CER basis, with "strong growth" from Lantus and vaccines more than offset by lower sales of Plavix, the Aprovel family and Amaryl due to the country's volume-based procurement programme

Looking ahead:

 

Sanofi now expects business earnings per share this year to grow between 6% and 7% at constant exchange rates, lifted from an earlier estimate of 5%. The company said that new patient starts and elective procedures are forecast to recover in the third quarter, but will "not yet…return to pre-COVID-19 levels." Sanofi added that vaccinations are also expected to recover, although these are not likely to reach pre-pandemic levels either, while travel vaccines will continue to be impacted.

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