Sanofi has exceeded expectations in Q4, reporting €10.56 billion in revenue, driven primarily by Dupixent’s strong sales of €3.46 billion. The company plans a €5 billion share buyback in 2025 and has seen impressive growth for 2024, with a projected EPS of €7.12 and revenues reaching €41.1 billion. In response to concerns over Dupixent’s reliance, Sanofi is enhancing R&D and divesting its consumer health division. Investors are wary of potential impacts from political changes, particularly regarding health policies.
Sanofi Surpasses Expectations in Q4
The prominent French pharmaceutical company has outperformed analysts’ predictions in the fourth quarter, largely thanks to the impressive sales of its key drug, Dupixent. The company reported a revenue of 10.56 billion euros, reflecting a 10.3% increase at constant exchange rates, surpassing the anticipated 10.39 billion euros.
Dupixent: A Key Player in Growth
Much of Sanofi’s success can be attributed to Dupixent, a treatment for asthma, atopic eczema, and more recently, chronic obstructive pulmonary disease (COPD). In this quarter alone, Dupixent brought in 3.46 billion euros in sales, making up roughly one-third of the company’s overall revenue. While this 16% growth is commendable, it still fell short of the 3.61 billion euros projected by analysts.
Sanofi is placing significant emphasis on the recent introduction of Dupixent for COPD, a condition affecting millions globally. The company stated, “The launch in COPD has commenced and is expected to gain traction by 2025.”
Plans for a Share Buyback Initiative
In an effort to bolster its stock price and provide value to shareholders, Sanofi plans to initiate a substantial share buyback program worth five billion euros in 2025. This initiative will involve transactions both through block trades and on the open market, with shares purchased set to be canceled.
Impressive Financial Performance for 2024
Building on its strong fourth-quarter growth, Sanofi has reported an earnings per share (EPS) from operations of 7.12 euros for 2024, marking a 4.1% increase at constant exchange rates. The company’s annual revenue experienced an impressive surge of 11.3% at constant exchange rates, reaching 41.1 billion euros.
Moreover, Beyfortus, another standout product from Sanofi, generated 1.7 billion euros in its first full year on the market, earning the prestigious status of a blockbuster.
Looking ahead to 2025, Sanofi is targeting revenue growth in the mid to high single-digit percentage range and anticipates a low double-digit percentage increase in EPS from operations, excluding the impact of share buybacks.
Strategic Shifts to Diversify Product Portfolio
In light of concerns over its reliance on Dupixent, Sanofi has ramped up its research and development initiatives. This strategic pivot has led the company to forgo its 2025 operational margin targets set in 2023, but the investment appears to be paying off with the successful development of other drugs such as Beyfortus.
Additionally, Sanofi is strategically divesting its consumer health division, Opella, known for producing Doliprane. The company confirmed that this sale could be finalized by the second quarter of 2025, with expectations of generating substantial revenue in the billions, as noted by CFO François-Xavier Roger.
Market Concerns Amid Political Changes
Investors are keenly observing the implications of the Trump administration’s policies, particularly surrounding the appointment of Robert Kennedy Jr. as Secretary of Health. Known for his controversial views on vaccines, Kennedy’s nomination raises significant concerns within the pharmaceutical sector. He is scheduled to appear before the U.S. Senate on Thursday for confirmation hearings.