Sanofi forecasts moderate profit growth on Dupixent demand

<html xmlns=""><head><title>UPDATE 4-Sanofi forecasts moderate profit growth on Dupixent demand</title></head><body>

Sees "low single digit" percentage core EPS growth, FX adjusted

Established MS pill faces competition from cheaper products

Shares down 3%, lowest since mid-November

CEO says Dupixent "mega-blockbuster" protected beyond 2031

Adds investor comment

By Ludwig Burger

Feb 3 (Reuters) -Sanofi SASY.PA forecast moderate earnings growth that undershot expectations, saying demand for bestselling asthma and eczema drug Dupixent would be partly offset by competition for its multiple sclerosis pill Aubagio and product launch costs.

The Paris-based drugmaker said on Friday it expected 2023 adjusted earnings per share to grow by a "low single digit" percentage, not taking into account an expected negative currency impact of between 3.5% and 4.5%.

Aubagio, with 2 billion euros ($2.2 billion) in sales last year, will face competition from cheaper products over the next few months after losing patent protection, Sanofi said.

Sanofi shares were down 3% at 1107 GMT, having earlier fallen as much as 5.2% to their lowest since mid-November with JP Morgan analysts saying investors had expected a better 2023 outlook and a more benign view on foreign exchange headwinds.

The company reaffirmed its target to achieve sales of Dupixent, jointly developed with Regeneron REGN.O, of 10 billion euros this year, up more than 20% from 8.29 billion euros in 2022.

"The results today were mixed and there's still the impression that Sanofi has a relatively weak development pipeline," said Markus Manns, portfolio manager at Germany-based Union Investment, which holds Sanofi stock.

Sanofi shares have yet to recover from a plunge in August following disappointing trial results of a once-promising breast cancer drug candidate put the strength of its development pipeline in doubt. Legal claims that heartburn drug Zantac caused cancer have also weighed on the stock.

Analysts have said that this year's expected market debut of two new products, to balance out reliance on Dupixent, would be important tests of the company's marketing prowess and a chance to regain investor confidence.

These products are haemophilia A treatment Altuviiio, requiring fewer injections than standard therapy, and Beyfortus from a partnership with AstraZeneca AZN.L, which is a preventive once-a-year shot against the common RSV airways infection in infants.

But for this year, marketing and sales expenses to boost those launches would drag earnings lower, finance chief Jean-Baptiste de Chatillon said in a media briefing.


Chief Executive Paul Hudson pushed back when asked in a press conference whether Sanofi was too dependant on Dupixent.

"When you don’t have a mega-blockbuster people say: don’t you need a mega-blockbuster to be a success?" he said, adding the intellectual property on the product with multiple uses was protected beyond 2031.

"We understand the requirement to be ready for the 2030s and beyond and we’d like to see more of our own home-grown innovation accelerate," said Hudson. But he added that three to five drug candidates with peak annual sales potential above 1 billion euros were in the pipeline over the next six years.

Sanofi reported a 20.7% rise in fourth-quarter business operating income, or adjusted earnings before interest and tax, to 2.72 billion euros ($2.96 billion), edging past an average analyst estimate of 2.69 billion euros posted on the company's website.

Revenue from Dupixent surged 42% to 2.4 billion euros during the quarter ended Dec. 31, slightly above a consensus of 2.37 billion euros.

The French drugmaker has forecast that Dupixent would generate up to 13 billion euros in sales in its best year as it seeks to widen its use across a number of inflammatory conditions.

Investors are expecting even more on average, partly on hopes that the injection will also succeed in a trial on smoker's lung, or COPD, a common disease that the company has so far excluded from its sales target.

"The Altuviiio launch is expected to be relatively strong but the market overall will for now wait for as-yet uncertain COPD trial data on Dupixent," said mutual fund manager Manns.

Analysts expect the study result to be published during the first half.

($1 = 0.9163 euros)

Reporting by Ludwig Burger; Editing by Rashmi Aich, Matt Scuffham, Jane Merriman and Emelia Sithole-Matarise


면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.

온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.

이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.

우리는 웹사이트에서 최고의 경험을 전해드리기 위해 쿠키를 사용하고 있습니다. 자세히 읽거나 쿠키 설정을 변경하세요.

리스크 경고: 고객님의 자본이 위험에 노출 될 수 있습니다. 레버리지 상품은 모든 분들에게 적합하지 않을수 있습니다. 당사의 리스크 공시를 참고하시기 바랍니다.