Sanofi boosts profit outlook as Dupixent, vaccines drive Q2 growth

Headline results for the second quarter:

  • Prescription drug sales: €6.6 billion ($7.8 billion), up 6%
  • Overall revenue: €8.7 billion ($10.3 billion; forecasts of €8.5 billion), up 6.5%
  • Profit: €1.2 billion ($1.4 billion), down 84.1%

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

What the company said:

CEO Paul Hudson noted that Sanofi's "business momentum has accelerated in the second quarter, delivering strong financial results driven by our core growth drivers Dupixent and vaccines." The executive added that the performance in the second quarter "gives us confidence in Sanofi's growth trajectory for this year."

Other results:

  • Specialty care unit: €3.1 billion ($3.7 billion), up 14%
    • Dupixent: €1.2 billion ($1.4 billion), up 44.9%, with US sales climbing 48.9% on a constant exchange rate (CER) basis to €947 million ($1.1 billion), driven by demand in atopic dermatitis and uptake in asthma and chronic rhinosinusitis with nasal polyposis
    • Aubagio: €494 million ($587 million), down 6.3%, hit by increased competition in the US
    • Eloctate: €144 million ($171 million), down 14.8%, declining in ex-US markets as a result of lower sales to Sobi following changes to the supply agreement
  • Diabetes unit: €1.1 billion ($1.3 billion), down 3.5%
    • Lantus: €637 million ($757 million), down 8.1%, dropping in Europe and the Rest of the World region due to more new patient starts on Toujeo and biosimilar glargine competition
    • Toujeo: €247 million ($294 million), up 3.3%, with the launch performance in China offsetting net price declines in the US
  • Oncology products: €226 million ($269 million), up 19.6%, with the launches of Sarclisa and Libtayo more than offsetting generic competition to Jevtana in Europe
  • Praluent: €48 million ($57 million), down 34.2%, reflecting the restructuring of a collaboration with Regeneron Pharmaceuticals effective April 1 last year
  • Vaccines division: €1 billion ($1.2 billion), up 10.2%, primarily due to increased booster and meningitis vaccinations in the US
  • Consumer healthcare: €1.1 billion ($1.3 billion), up 6.3%, reflecting a low base for comparison in the second quarter of 2020
  • Sales in China: €654 million ($778 million), up 4% on a CER basis, led by Dupixent and Toujeo

Looking ahead:

Sanofi now expects business earnings per share to grow around 12% at CER, lifted from a prior estimate of an increase in the high-single digits.

Pipeline updates:

The company reaffirmed that a Phase III study of SP0253, an adjuvanted recombinant-protein COVID-19 vaccine candidate being developed with GlaxoSmithKline, is on track to read out in the fourth quarter, with regulatory submissions to follow. "The potential need for booster shots is growing and there is a lot of interest in our COVID-19 vaccine programme from governments," noted chief financial officer Jean-Baptiste Chasseloup. He added that Sanofi also wants "to be in the race to see if mRNA can bring something to the flu market."

Meanwhile, Sanofi said it has dropped the complement C1s inhibitor sutimlimab from Phase I development in immune thrombocytopenic purpura, but did not give further details. The company also said it outlicensed SAR441236, a trispecific antibody in development for HIV, to ModeX Therapeutics except for some retained obligations related to the ongoing A5377 clinical trial sponsored by the US National Institutes of Health.

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