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Sanofi (NASDAQ:SNY) Q3 sales grew on the performance of its blockbuster drug Dupixent and Vaccines business, while the company also raised its FY22 business EPS outlook.
Q3 Business EPS rose +32.1% Y/Y (reported basis) (+17.9% at constant exchange rates, or CER) to €2.88
Sales grew +19.7% Y/Y ( +9% CER) to €12.48B. The company said exchange rate movements had a positive effect of 10.7 percentage points, mainly due to the U.S. dollar.
In September, the French drugmaker had already suggested that it expected a positive impact on its Q3 results due to movements in the currency markets.
“Our strong results for the third quarter demonstrate that Sanofi is on the right path, with a remarkable performance of 20% growth in both Specialty Care and Vaccines, leading us to again raise our business EPS guidance for the full-year,” said Sanofi CEO Paul Hudson.
Pharmaceutical segment sales increased 15.2% (+5.1% CER) to ~€7.9B, mainly driven by the Specialty Care portfolio (up 19.9% at CER) with continued strong performance of eczema/asthma therapy Dupixent, while sales in General Medicines declined -8.5% Y/Y at CER to €3.60B.
Sales of Dupixent, which is developed in collaboration with Regeneron (NASDAQ:REGN), increased +64.1% Y/Y (+44.5% at CER) to €2.31B.
Neurology and Immunology sales increased +7% Y/Y (but fell -4.7% at CER) to €627M.
Sales of multiple sclerosis drug Aubagio declined -3.7% at CER (rose +7.9%Y/Y) to €521M, due to lower sales in the U.S. because of both competitive pressure and price and in the Rest of the World region.
Rheumatoid arthritis therapy Kevzara’s sales grew declined -2.4% at CER ( +6% Y/Y reported) to €88M due to temporary increased global demand for IL-6 receptor blockers, according to Sanofi.
Rare Disease sales increased +15.5% (+7.7% at CER) to €900M.
Sanofi said Q3 Oncology segment sales decreased +8.4% at CER (-0.4%) to €224M, reflecting the end of consolidation of Libatyo sales from the beginning of July.
Excluding Libtayo, Oncology sales were up +8.4% at CER driven by multiple myeloma drug Sarclisa +54.2% at CER Y/Y (+64.6%) to €79M which largely offset the impact of prostate cancer drug Jevtana’s generic competition in Europe. Jevtana’ sales declined -13.3% at CER Y/Y (-3.8%) to €101M.
Insulin Lantus sales declined -10.1% at CER Y/Y (-17.7%) to €559M.
Sanofi noted Q3 Vaccines segment sales grew +23.5% at CER Y/Y (+36.9%) to ~€3.32B mainly driven by higher influenza vaccines sales.
Influenza vaccines sales increased +32.4% at CER to €1.99B. Polio/Pertussis/Hib (PPH) vaccines sales grew 9.1% at CER to €640M.
Consumer Healthcare segment sales increased +1.9% at CER (+10%) to €1.27B driven by growth in Europe and the Rest of the World region and compared with the high basis in the Q3 2021 which benefitted from COVID-19 related demand.
Other metrics:
Gross Profit increased +22.6% (+10.3% at CER) to ~€9.31B. Q3 business operating income (BOI) increased +26.5% (+13% at CER) to ~€4.5B.
Sanofi noted that BOI margin was up 1.9 ppt to 36.0% due to gross margin improvement from efficiency gains, product mix and EUROAPI deconsolidation.
Outlook:
Sanofi now expects 2022 business EPS to grow ~16% (+15% previously) at CER, barring unforeseen major adverse events. At October 2022 exchange rates, the positive currency impact on 2022 business EPS is estimated between +9.5% and +10.5%, according to the company.
“Looking ahead, we are well positioned to achieve our BOI margin target of 30% in 2022 and to stay focused on our ambition to transform the practice of medicines for patients around the world,” added Hudson.
SNY +1.37% to $42.15 premarket Oct. 28
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