Updated April 25th, 2024 at 13:31 IST

Sanofi's Q1 operating income dips 14.7% despite rising dupixent sales

Sanofi reiterated its outlook for 2024 adjusted earnings per share (EPS) to decrease by a low single-digit percentage, excluding currency fluctuations.

Reported by: Business Desk
Sanofi | Image:PTI
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Sanofi's Q1 operating: Sanofi announced a 14.7 per cent decline in first-quarter operating income, primarily attributed to currency effects and heightened competition facing its multiple sclerosis drug, Aubagio. The French pharmaceutical giant reported adjusted operating income of €2.84 billion ($3.04 billion), slightly surpassing analyst expectations of €2.79 billion, as per a poll on Sanofi's website.

Despite the setback, Sanofi reiterated its outlook for 2024 adjusted earnings per share (EPS) to decrease by a low single-digit percentage, excluding currency fluctuations. The company cited anticipated higher taxes and increased development expenditures as contributing factors. It also warned that currency fluctuations could further depress 2024 earnings by 5.5 per cent to 6.5 per cent at current rates.

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Francois-Xavier Roger, Sanofi's Chief Financial Officer, highlighted the adverse impact of the Argentine Peso's decline on first-quarter overseas sales during a media call.

Sales of Dupixent, an anti-inflammatory drug for eczema and asthma, surged by a currency-adjusted 25 per cent to 2.84 billion euros, constituting 27 per cent of the group's total sales and meeting analyst expectations.

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Roger affirmed that preparations to list the Consumer Healthcare division on the Paris stock exchange by the fourth quarter remained on track, although alternative options such as a sale were still under consideration.

Sanofi's CEO, Paul Hudson, has been working to rebuild investor confidence in the company's drug pipeline since abandoning 2025 margin targets last October to prioritise increased drug development spending.

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Analysts view recent drug launches like Beyfortus, designed to protect infants against common respiratory infections, as promising for Sanofi's medium-term earnings prospects. Quarterly sales of Beyfortus exceeded expectations, reaching €182 million.

(with Reuters inputs)

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Published April 25th, 2024 at 13:31 IST