Thursday, Sanofi SA ( SNY )  reported first-quarter operating income of 2.8 billion euros, down 14.7% Y/Y and 4.2% on constant currency.

The French drugmaker reported adjusted EPS of $0.97 (1.78 euros), beating the consensus estimate of $0.94.

Also Read: In Heart Burn Drug Zantac’s Litigation Saga, Sanofi Nears Settlement in Major Lawsuit Cluster.

The company reported first-quarter sales of $11.36 billion (10.5 billion euros), beating the consensus of $11.04 billion.

Research and Development expenses increased by 10.0% to 1.7 billion euros. At CER, R&D expenses increased by 11.8%, reflecting increased expenses in Vaccines (mRNA) and Pharma (pipeline acceleration).

The strong performance of Dupixent, Pharma launches, and Beyfortus late-season deliveries was partially offset by the impact of generic competition on Aubagio as well as lower sales of Lantus.

First-quarter sales of eczema and asthma drug Dupixent jumped a currency-adjusted 24.9% to 2.84 billion euros.

Pharma launches up 90.5% to 606 million euros, led by Nexviazyme and ALTUVIIIO.

Vaccine sales increased by 5.6% to 1.2 billion euros, driven by strong Beyfortus (RSV vaccine) uptake partly offset by the absence of COVID-19 vaccine sales this quarter compared to 167 million euros in Q1 2023

Guidance: For 2024, Sanofi ( SNY ) reiterates a low single-digit business EPS decline.

The company expects Dupixent to deliver around €13 billion in 2024 sales.

Vaccine sales are expected to grow mid-single-digit in 2024.

Sanofi ( SNY ) shares an ambition to reach blockbuster status (sales over $1 billion) for its Beyfortus vaccine.

Beyfortus sales reached 182 million euros, reflecting late deliveries in the US and the new implementation of “All Infant Protection” programs in Chile and Australia. No Beyfortus sales are expected in Q2 2024 due to the early delivery in Q1 and the specific seasonality.

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Price Action: SNY shares are up 5.40% at $49.13 at the last check Thursday.

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