Sanofi Soars: Early Vaccine Sales and Dupixent Success Drive Record Q3 Profits
In a remarkable display of market strength, Sanofi has exceeded analyst expectations with its third-quarter earnings for 2024, powered by an early start to the vaccination season and continued growth of its flagship drug, Dupixent.
The French pharmaceutical giant posted an impressive 14.4% increase in business operating income, reaching 4.6 billion euros ($5.0 billion) in the third quarter. This surge significantly outperformed market predictions, which had estimated earnings at 4 billion euros.
Leading the charge was Sanofi’s vaccine division, which saw sales jump by 25.5% to 3.8 billion euros. Early-than-usual flu shot prescriptions and strong demand for Beyfortus, their groundbreaking treatment that protects newborns from respiratory viruses, drove this exceptional performance.
Paul Hudson, Sanofi’s CEO, is steering the company toward an ambitious future. The company is currently finalizing the sale of a 50% stake in its consumer unit, Opella, valued at a whopping 16 billion euros. This strategic move aims to boost funding for cutting-edge drug development and clinical trials.
Star performer Dupixent continues to shine bright, with quarterly revenues climbing 23.8% to reach 3.48 billion euros. The anti-inflammatory medication’s future looks even more promising following its recent approval for treating a common lung condition.
François-Xavier Roger, Sanofi’s finance chief, highlighted the company’s robust growth. “Even without the early vaccine shipments, we would have seen very attractive quarterly growth of nearly 11%,” he told reporters during a media call.
The market responded positively to these results, with Sanofi’s shares rising up to 2.9% in early Paris trading, adding to their impressive 11% gain for the year. J.P. Morgan analysts predicted a 3-5% outperformance in their equity research note, citing the strong results and 15% beat on business EPS.
In a significant strategic shift, Sanofi announced exclusive talks with U.S. investor Clayton Dubilier & Rice regarding the sale of a controlling stake in Opella, its consumer health business. This move aligns with the industry trend of pharmaceutical companies focusing on their core prescription drug operations.
Looking ahead, Sanofi projects that its core business (excluding Opella) will see adjusted earnings per share grow by at least a low single-digit percentage in 2024, with a strong rebound anticipated in 2025.
The success of Beyfortus has positioned Sanofi strongly in the RSV treatment market. When asked about competition from Merck & Co.’s developing rival product, Roger expressed confidence in Beyfortus’s superior efficacy and real-world evidence of protection in tens of thousands of babies, calling it “a high bar to surpass.”
This strategic transformation under Hudson’s leadership marks Sanofi’s evolution into a pure-play biopharma company. With twelve potential blockbuster medicines in clinical trials and a streamlined focus on cutting-edge therapies, Sanofi is positioning itself as a leader in next-generation drug development.
The company’s decision to separate Opella has sparked investor interest, with market analysts now watching closely to see how Sanofi will use the proceeds from the sale, with possibilities including share buybacks or special dividends.
As Sanofi continues its transformation into a more focused, innovation-driven pharmaceutical company, these strong Q3 results suggest the strategy is already paying dividends, both literally and figuratively.