Sanofi raises profit forecast following positive Q2 results

Sales for Q2 were driven by the company’s eczema drug and its vaccines portfolio

Sanofi reception

Sanofi CEO Paul Hudson expects annual earnings to rise by 12% in 2021 following results for the second quarter that beat forecasters’ predictions.

Sales for the quarter to June 2021 “grew by double digits” to €8.7bn (up by 12.4% at CER), driven by the company’s eczema drug Dupixent (dupilumab) and its vaccines portfolio.

A 56.6% increase in sales of Dupixent (to €1.24bn) drove a 22% increase in Sanofi’s specialty care business. The lion’s share of Dupixent sales were in the US (€947m, up by 48.9%), driven by strong demand in atopic dermatitis and continued uptake in asthma and chronic rhinosinusitis with nasal polyposis.

Sales of vaccines rose by 16.2% to €1.02bn, driven by meningitis and boosters.

“Our second-quarter performance gives us confidence in Sanofi’s growth trajectory for this year,” said Hudson.

Although hit by the pandemic last year, Sanofi has had a strong 2021, with shares rising by almost 11% since January, lagging behind Pfizer’s 18% but ahead of GSK’s 4% rise.

Vaccines remain a focus for the company, which is one of the world’s biggest vaccine makers. Overcoming the delay caused by a dosing error in a vital study, Sanofi hopes to launch its COVID-19 vaccine – codeveloped with GSK – by the end of the year.

With competitors such as BioNTech/Pfizer and Moderna well ahead in the COVID vaccination race, Sanofi said its jab might be useful as a booster shot. “The potential need for booster shots is growing and there is a lot of interest in our COVID-19 vaccine from governments,” said chief financial officer Jean-Baptiste Chasseloup de Chatillon.

Last month the company announced the launch of a first-of-its-kind mRNA vaccine Centre of Excellence. The €400m annual investment will tackle key challenges, including thermostability and tolerability, that stand in the way of the technology becoming part of routine vaccination against a range of infectious diseases.

Sanofi also stressed several important R&D milestones and regulatory achievements in Q2:

  • Conclusion of pivotal studies for nirsevimab in infections caused by the respiratory syncytial virus
  • Phase 1 studies start for a new flu vaccine
  • European regulatory approvals for cancer treatments Libtayo and Sarclisa
  • Completion of the acquisition of Tidal Therapeutics, Kiadis and Kymab.

Article by
Hugh Gosling

Hugh Gosling is a healthcare writer and editor.

2nd August 2021

From: Research, Healthcare

Article by
Hugh Gosling

Hugh Gosling is a healthcare writer and editor.

2nd August 2021

From: Research, Healthcare

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