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Sanofi (SNY - Free Report) reported second-quarter 2024 adjusted earnings of 93 cents per American depositary share, which beat the Zacks Consensus Estimate of 88 cents per share. Earnings of €1.73 per share declined 0.6% on a reported basis but rose 4.0% on a constant currency rate (“CER”) basis.
Net sales rose 7.8% on a reported basis to $11.57 billion (€10.75 billion). Exchange rate movements hurt sales by 2.4% in the quarter. Sales rose 10.2% on a CER basis. Sales missed the Zacks Consensus Estimate of $11.73 billion.
Sales rose 19.8% at CER in the United States and 8.3% in the Rest of the World (including China, Japan, Brazil and Russia) but declined 2.2% in Europe.
All growth rates mentioned below are at CER.
Segment Performance
Sanofi’s Biopharma segment includes Pharma and Vaccines. Biopharma sales rose 10.3% in the quarter to €9.44 billion.
Pharma sales increased 12.8% to €8.3 billion, mainly driven by Dupixent and new product launches.
Dupixent
Dupixent generated sales of €3.30 billion in the quarter, up 29.2% year over year.
Sales of the drug in the United States rose 23.8%, driven by strong demand in its approved indications, atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. In the United States, Dupixent’s new prescription share and total prescription share rose 23% and 22%, respectively. Dupixent was approved for its sixth indication — chronic obstructive pulmonary disease (COPD) — in Europe earlier this month.
Dupixent sales rose 29% in Europe and 60.8% in the Rest of the World, driven mainly by sales in Japan and China.
Sanofi markets Dupixent in partnership with Regeneron (REGN - Free Report) . While sales are recorded by Sanofi, Regeneron records its share of profits/losses in connection with global sales of Dupixent.
New Drugs
Among Sanofi’s newer drugs, rare blood disorder drug Altuviiio, a once-weekly new class of factor VIII therapy for hemophilia A, recorded sales of €158 million in the second quarter of 2024 compared with €122 million in the previous quarter, mainly driven by patient switches in the U.S. hemophilia A market. Altuviiio was launched in the United States and Japan last year.
New Pompe disease drug, Nexviazyme/Nexviadzyme recorded sales of €168 million in the second quarter compared with €152 million in the previous quarter. While sales were strong in Europe and the Rest of the World segments, growth slowed down in the United States as a high rate of conversion from Myozyme/Lumizyme has already been achieved.
New rare disease drug Xenpozyme recorded sales of €37 million in the quarter compared with €35 million in the previous quarter.
Enjaymo recorded sales of €26 million in the quarter compared with €29 million in the previous quarter.
Tzield sales were €11 million in the second quarter, compared with €10 millionin the previous quarter. Tzield, approved to delay the onset of type I diabetes, was added to Sanofi’s portfolio with the 2023 acquisition of Provention Bio.
Cablivi recorded sales of €54 million, down 1.8% year over year due to lower patient diagnoses. Sarclisa sales rose 36.2% year over year to €121 million.
Rezurock recorded sales of €114 million, up 52.7% year over year.
Other Key Drugs
Among the immunology and neurology medicines, Aubagio sales declined 49.5% year over year to €107 million due to generic competition in the United States and Europe.
In Diabetes, Toujeo recorded sales of €313, up 11% year over year, driven mainly by higher sales in Europe and China. Lantus sales rose 21% to €398 million.
Among the rare disease drugs in the Pompe franchise, Myozyme sales declined 11.5% year over yearto €180 million due to patients switching to Nexviazyme. Fabrazyme sales were €273 million, up 12.4% year over year. In the Gaucher franchise, Cerezyme sales rose 19.3% year over year to €193 million.
Among the rare blood disorder drugs, Eloctate sales declined 18.5% year over year to €105 million in the quarter due to patients switching to the new drug Altuviiio, which was partially offset by growth in the Rest of the World.
Plavix sales increased 2.1% year over year to €235 million. Lovenox sales decreased 4.6% year over year to €256 million.
Vaccines
Vaccine sales declined 4.8% year over year to €1.14 billion in the quarter due to the absence of COVID-19 vaccine sales in the quarter compared with the year-ago quarter.
Sales of flu vaccines rose 20.2% year over year. Sales of PPH vaccines declined 5.1% year over year in the quarter. Sales of meningitis, travel and other endemic vaccines rose 0.3% year over year in the quarter.
Sanofi and partner AstraZeneca’s (AZN - Free Report) RSV antibody Beyfortus (nirsevimab) recorded sales of €18 million in the second quarter, much less than €182 million in the previous quarter due to vaccine seasonality toward the second half of the year.
AstraZeneca-partnered Beyfortus was launched in the United States and Europe for preventing RSV-related lower respiratory tract disease in newborns and infants in September 2023.
Opella (Previously Consumer Healthcare)
Last year, Sanofi announced that it intends to separate the Consumer unit through the creation of a publicly listed entity headquartered in Paris. Along with the earnings results, Sanofi announced the name of the company as Opella. The separation is expected to be completed this year. Opella standalone unit generated sales of €1.3 billion, up 9.6% year over year, supported by the Qunol acquisition.
Improved 2024 Guidance
Sanofi improved its earnings growth expectations for 2024 from a decline in the low single-digit range to be stable at CER. Sanofi anticipates a negative currency impact in the range of 5.5%-6.0% on adjusted earnings. In 2024, Dupixent sales are expected to be around €13 billion.
Our Take
Sanofi’s quarterly results were mixed as it beat estimates for earnings while missing the same for sales. However, the company recorded double-digit year-over-year top-line growth at CER after quite a few quarters. Higher sales of Dupixent and contributions from new products like Altuviiio and Nexviazyme were partially offset by the impact of generic competition on Aubagio sales and lower Vaccine sales.
Sanofi also raised its 2024 earnings growth expectations at CER. Investors cheered the guidance increase as Sanofi had said last year that it expected profits to decline in 2024 due to higher R&D costs and taxes. Back then, Sanofi had also scrapped its previously issued 32% adjusted operating margin target for 2025.
Sanofi’s shares rose 3.4% in pre-market trading on Thursday in response to the guidance increase.
Sanofi’s stock is up 3% so far this year compared with the industry’s rise of 20.0%.
Image Source: Zacks Investment Research
Sanofi has accelerated its mid- and late-stage pipeline this year. It has also been active on the M&A front. In May, Sanofi acquired Inhibrx, which added SAR447537 (previously INBRX-101), being developed in a phase II study to treat alpha-1 antitrypsin deficiency, an inherited rare disease characterized by low levels of AAT protein, mainly affecting lung function.
In October last year, Sanofi in-licensed joint development and commercialization rights to Teva Pharmaceuticals’ (TEVA - Free Report) inflammatory bowel disease (“IBD”) candidate, duvakitug (previously TEV’574), a novel anti-TL1A therapy. On Thursday, Teva announced that a phase IIb study on duvakitug for ulcerative colitis and Crohn's disease, which are two types of IBD, has been completed earlier than expected due to rapid patient recruitment. Initial data from the study will now be announced in the fourth quarter. Earlier, the company had planned an interim analysis for the second half of the year, which will not be conducted now.
AstraZeneca also announced its earnings on Thursday. The company beat estimates for both earnings and sales. Backed by a strong performance in the first half of the year, AstraZeneca raised its sales and earnings growth expectations for the year. Total revenues and core earnings are expected to increase in a mid-teens percentage at CER versus the prior expectation of a low double-digit to low teens percentage range. Despite the earnings beat and guidance upgrade, AstraZeneca’s stock declined around 5% in pre-market trading.
Image: Bigstock
Sanofi (SNY) Q2 Earnings Beat, Sales Miss, 2024 View Raised
Sanofi (SNY - Free Report) reported second-quarter 2024 adjusted earnings of 93 cents per American depositary share, which beat the Zacks Consensus Estimate of 88 cents per share. Earnings of €1.73 per share declined 0.6% on a reported basis but rose 4.0% on a constant currency rate (“CER”) basis.
Net sales rose 7.8% on a reported basis to $11.57 billion (€10.75 billion). Exchange rate movements hurt sales by 2.4% in the quarter. Sales rose 10.2% on a CER basis. Sales missed the Zacks Consensus Estimate of $11.73 billion.
Sales rose 19.8% at CER in the United States and 8.3% in the Rest of the World (including China, Japan, Brazil and Russia) but declined 2.2% in Europe.
All growth rates mentioned below are at CER.
Segment Performance
Sanofi’s Biopharma segment includes Pharma and Vaccines. Biopharma sales rose 10.3% in the quarter to €9.44 billion.
Pharma sales increased 12.8% to €8.3 billion, mainly driven by Dupixent and new product launches.
Dupixent
Dupixent generated sales of €3.30 billion in the quarter, up 29.2% year over year.
Sales of the drug in the United States rose 23.8%, driven by strong demand in its approved indications, atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. In the United States, Dupixent’s new prescription share and total prescription share rose 23% and 22%, respectively. Dupixent was approved for its sixth indication — chronic obstructive pulmonary disease (COPD) — in Europe earlier this month.
Dupixent sales rose 29% in Europe and 60.8% in the Rest of the World, driven mainly by sales in Japan and China.
Sanofi markets Dupixent in partnership with Regeneron (REGN - Free Report) . While sales are recorded by Sanofi, Regeneron records its share of profits/losses in connection with global sales of Dupixent.
New Drugs
Among Sanofi’s newer drugs, rare blood disorder drug Altuviiio, a once-weekly new class of factor VIII therapy for hemophilia A, recorded sales of €158 million in the second quarter of 2024 compared with €122 million in the previous quarter, mainly driven by patient switches in the U.S. hemophilia A market. Altuviiio was launched in the United States and Japan last year.
New Pompe disease drug, Nexviazyme/Nexviadzyme recorded sales of €168 million in the second quarter compared with €152 million in the previous quarter. While sales were strong in Europe and the Rest of the World segments, growth slowed down in the United States as a high rate of conversion from Myozyme/Lumizyme has already been achieved.
New rare disease drug Xenpozyme recorded sales of €37 million in the quarter compared with €35 million in the previous quarter.
Enjaymo recorded sales of €26 million in the quarter compared with €29 million in the previous quarter.
Tzield sales were €11 million in the second quarter, compared with €10 millionin the previous quarter. Tzield, approved to delay the onset of type I diabetes, was added to Sanofi’s portfolio with the 2023 acquisition of Provention Bio.
Cablivi recorded sales of €54 million, down 1.8% year over year due to lower patient diagnoses. Sarclisa sales rose 36.2% year over year to €121 million.
Rezurock recorded sales of €114 million, up 52.7% year over year.
Other Key Drugs
Among the immunology and neurology medicines, Aubagio sales declined 49.5% year over year to €107 million due to generic competition in the United States and Europe.
In Diabetes, Toujeo recorded sales of €313, up 11% year over year, driven mainly by higher sales in Europe and China. Lantus sales rose 21% to €398 million.
Among the rare disease drugs in the Pompe franchise, Myozyme sales declined 11.5% year over yearto €180 million due to patients switching to Nexviazyme. Fabrazyme sales were €273 million, up 12.4% year over year. In the Gaucher franchise, Cerezyme sales rose 19.3% year over year to €193 million.
Among the rare blood disorder drugs, Eloctate sales declined 18.5% year over year to €105 million in the quarter due to patients switching to the new drug Altuviiio, which was partially offset by growth in the Rest of the World.
Plavix sales increased 2.1% year over year to €235 million. Lovenox sales decreased 4.6% year over year to €256 million.
Vaccines
Vaccine sales declined 4.8% year over year to €1.14 billion in the quarter due to the absence of COVID-19 vaccine sales in the quarter compared with the year-ago quarter.
Sales of flu vaccines rose 20.2% year over year. Sales of PPH vaccines declined 5.1% year over year in the quarter. Sales of meningitis, travel and other endemic vaccines rose 0.3% year over year in the quarter.
Sanofi and partner AstraZeneca’s (AZN - Free Report) RSV antibody Beyfortus (nirsevimab) recorded sales of €18 million in the second quarter, much less than €182 million in the previous quarter due to vaccine seasonality toward the second half of the year.
AstraZeneca-partnered Beyfortus was launched in the United States and Europe for preventing RSV-related lower respiratory tract disease in newborns and infants in September 2023.
Opella (Previously Consumer Healthcare)
Last year, Sanofi announced that it intends to separate the Consumer unit through the creation of a publicly listed entity headquartered in Paris. Along with the earnings results, Sanofi announced the name of the company as Opella. The separation is expected to be completed this year. Opella standalone unit generated sales of €1.3 billion, up 9.6% year over year, supported by the Qunol acquisition.
Improved 2024 Guidance
Sanofi improved its earnings growth expectations for 2024 from a decline in the low single-digit range to be stable at CER. Sanofi anticipates a negative currency impact in the range of 5.5%-6.0% on adjusted earnings. In 2024, Dupixent sales are expected to be around €13 billion.
Our Take
Sanofi’s quarterly results were mixed as it beat estimates for earnings while missing the same for sales. However, the company recorded double-digit year-over-year top-line growth at CER after quite a few quarters. Higher sales of Dupixent and contributions from new products like Altuviiio and Nexviazyme were partially offset by the impact of generic competition on Aubagio sales and lower Vaccine sales.
Sanofi also raised its 2024 earnings growth expectations at CER. Investors cheered the guidance increase as Sanofi had said last year that it expected profits to decline in 2024 due to higher R&D costs and taxes. Back then, Sanofi had also scrapped its previously issued 32% adjusted operating margin target for 2025.
Sanofi’s shares rose 3.4% in pre-market trading on Thursday in response to the guidance increase.
Sanofi’s stock is up 3% so far this year compared with the industry’s rise of 20.0%.
Image Source: Zacks Investment Research
Sanofi has accelerated its mid- and late-stage pipeline this year. It has also been active on the M&A front. In May, Sanofi acquired Inhibrx, which added SAR447537 (previously INBRX-101), being developed in a phase II study to treat alpha-1 antitrypsin deficiency, an inherited rare disease characterized by low levels of AAT protein, mainly affecting lung function.
In October last year, Sanofi in-licensed joint development and commercialization rights to Teva Pharmaceuticals’ (TEVA - Free Report) inflammatory bowel disease (“IBD”) candidate, duvakitug (previously TEV’574), a novel anti-TL1A therapy. On Thursday, Teva announced that a phase IIb study on duvakitug for ulcerative colitis and Crohn's disease, which are two types of IBD, has been completed earlier than expected due to rapid patient recruitment. Initial data from the study will now be announced in the fourth quarter. Earlier, the company had planned an interim analysis for the second half of the year, which will not be conducted now.
AstraZeneca also announced its earnings on Thursday. The company beat estimates for both earnings and sales. Backed by a strong performance in the first half of the year, AstraZeneca raised its sales and earnings growth expectations for the year. Total revenues and core earnings are expected to increase in a mid-teens percentage at CER versus the prior expectation of a low double-digit to low teens percentage range. Despite the earnings beat and guidance upgrade, AstraZeneca’s stock declined around 5% in pre-market trading.
Zacks Rank
Sanofi currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sanofi Price, Consensus and EPS Surprise
Sanofi price-consensus-eps-surprise-chart | Sanofi Quote