Sanofi (SNY.US) shares are up 4% today despite an EPS miss and lower-than-expected sales of its blockbuster asthma drug, Dupixent. The positive sentiment is driven by the announcement of a €5 billion share buyback, strong overall sales growth, and plans to expand into high-growth pharmaceuticals.
Dupixent, the main driver of Sanofi’s revenue, fell slightly short of expectations ($3.5 billion) due to fewer selling days and a higher rebate in the U.S. However, the company forecasts higher demand in 2025, as the drug has recently been approved for chronic obstructive pulmonary disease (COPD) treatment.
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Create account Try a demo Download mobile app Download mobile appOn the other hand, Sanofi’s RSV vaccine, Beyfortus, drove strong Q4 sales of €841 million, exceeding the €679 million analyst estimate. However, the company expects slower growth going forward as it faces potential competition from Merck.
Key Financials (Q4 2024):
- Sales: €10.56 billion (+9.1% YoY), beating the €10.41 billion consensus
- Business EPS: €1.31 (vs. €1.34 estimate, down from €1.54 YoY)
- Business Net Income: €1.64 billion (-15% YoY)
- Operating Income: €2.08 billion (-12% YoY)
- Gross Margin: 74.3% (vs. 76.8% YoY)
- R&D Expenses: €2.26 billion (+24% YoY)
- Free Cash Flow: €2.34 billion
- 2025 Guidance: Mid-to-high single-digit sales growth; low double-digit EPS growth (excluding buyback)
The significant increase in R&D spending reflects Sanofi’s ambition to pivot from consumer health products toward a diversified portfolio of vaccines, rare disease therapies, neurology, and oncology. At the moment, 26 projects are in Phase III trials, and 7 are in the registration process. Paul Hudson has also expressed a particular interest in developing next-generation obesity treatments, currently exploring early-stage candidates. However, the drugmaker remains cautious about joining the already competitive weight-loss drug market.
Sanofi’s stock has seen a strong uptick, especially compared to its competitor Merck. The price has broken above the 38.2 Fibonacci level, setting the stage for a bullish EMA100 crossover (dark purple). RSI is edging into the overbought zone, so stock dynamics might slow until the next major pipeline advancement. Source: xStation5
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