Sanofi’s profits rose on demand for seasonal vaccines and further growth for its blockbuster skin and asthma drug Dupixent.
Sanofi said on Friday that third-quarter earnings per share excluding certain items amounted to 2.86 euros ($3.10). Sales exceeded analysts’ expectations, helped by faster-than-expected sales growth for influenza and respiratory syncytial virus vaccinations.
The drugmaker this week announced exclusive talks with U.S. buyout firm Clayton Dubilier & Rice to sell its consumer health division and raised its full-year profit forecast.
Sanofi shares rose as much as 2.9% in early Paris trading on Friday, extending their gain this year to about 11%.
Chief Executive Paul Hudson is chipping away at Sanofi’s drug development program to create more drugs like Dupixent, which has had record sales in a quarter. The company is pushing the development of more than a dozen potential top-selling drugs through expensive clinical trials.
The approach is similar to that of rivals such as Novartis AG, which focuses on cutting-edge treatments while divesting older drug and consumer health divisions.
Dupixent sales increased 24% in the quarter to approximately 3.5 billion euros. The drug is expected to continue to generate revenue, especially after it received approval from regulators in Europe and the United States to treat a lung disease known as chronic obstructive pulmonary disease.
Growth in the vaccine business was driven in part by the rollout of Bayfortas, a vaccine that protects infants from respiratory syncytial virus.
Merck & Co. is also developing a rival monoclonal antibody against RSV. Sanofi chief financial officer François-Xavier Roger dismissed concerns about competition with Merck’s jab, saying there was real-world evidence that Sanofi’s jab is more effective and can protect tens of thousands of babies. However, he said, “This is a high hurdle to overcome.”
The focus in recent weeks has been on the sale of a consumer health business called Opella. Roger told reporters that giving the unit the possibility to operate independently was a “tremendous opportunity” for the unit to grow. The move also allows Sanofi to become a pure biopharmaceutical company, he said.
Bloomberg Intelligence’s John Murphy said in a note that investors’ focus could now shift to whether the proceeds from the sale of Opera shares could be used for “share buybacks or special dividends.”
