Sanofi Earnings Get Boost From Dupixent, New Drugs as U.S. Talks Continue -- Update

Sanofi said a jump in sales of its blockbuster Dupixent drug and robust pharmaceutical launches drove higher revenue and adjusted earnings for the third quarter, as the company continues in talks with the U.S. government over drug pricing. The French pharmaceutical company is in constant discussions with the Trump administration and policymakers about how to increase affordability and access for U.S. patients, Sanofi's Chief Financial Officer Francois-Xavier Roger said Friday during a call with reporters. Roger declined to comment further on U.S. drug pricing or the talks. He also declined to comment on a White House probe into whether U.S. trading partners are underpaying for drugs. Analysts expect big pharma companies to follow in the footsteps of Pfizer and AstraZeneca and strike deals with the Trump administration to reduce the prices for their drugs in the U.S. Like Sanofi, Switzerland's Roche on Thursday said it was still in discussions with the White House. Sanofi has committed to bolster its U.S. footprint, another key concern raised by the Trump administration. In May, the company said it would invest at least $20 billion in the U.S. through 2030. Trump last month said pharma companies building plants in the country would be exempted from tariffs on branded or patented medicines. After selling its consumer-healthcare arm, Sanofi has turned to dealmaking to replenish its drug pipeline to mitigate setbacks in some recent clinical trials and prepare for the future patent expiration of its topselling drug Dupixent, an anti-inflammatory treatment it developed jointly with Regeneron Pharmaceuticals. Roger said Sanofi has ample time to address the loss of exclusivity of Dupixent, which is currently set to lose patent protection in 2031, and other drugs. Dupixent accounts for roughly one third of Sanofi's sales. Next year will be interesting for experimental drug trial results for the company, Roger said. The company reported net sales of 12.43 billion euros ($14.44 billion) for the third quarter, up 7% on year at constant currency. Sanofi said new medicine generated sales of 1 billion euros, up 57% from the same period last year. It said that Dupixent sales jumped 26% to 4.2 billion euros, which allowed the company to offset a 7.8% fall in vaccine revenue. Roger said vaccines are declining as a category around the globe. Net profit was 2.80 billion euros, down 0.5% due to losses from discontinued operations. Excluding exceptional items, business net profit was 3.55 billion euros, or 2.91 euros a share, up 4% and 7% respectively. Analysts had forecast Sanofi's sales at 12.29 billion euros and adjusted earnings per share at 2.70 euros, according to consensus estimates provided by Vara Research. Sanofi said that, in addition to Dupixent, its top line benefited from high growth from top-performing drugs such as the diabetes treatments Lantus and Toujeo. The group confirmed its full-year forecast of sales growth at a high single-digit percentage at constant exchange rates. It said it still anticipates a strong result in business earnings per share excluding share buybacks to rise at a low double-digit percentage at constant exchange rates. Shares in Sanofi rose as much as 5% in early trading in Europe, before pulling back somewhat, with analysts at Morgan Stanley calling the company's results reassuring.

Sanofi Earnings Get Boost From Dupixent, New Drugs as U.S. Talks Continue -- Update

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