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Sanofi lifts 2024 profit forecast on strength in Dupixent, new drugs
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Sanofi lifts 2024 profit forecast on strength in Dupixent, new drugs
Jul 24, 2024 11:54 PM

July 25 (Reuters) - Sanofi's second-quarter

profit rose on strong demand for its blockbuster asthma drug

Dupixent and better-than-expected sales of new launches, it said

on Thursday, adding that it no longer expects a fall in

full-year profit.

It forecast that 2024 earnings per share would be in line

with 2023's, from its previous expectation of a low single-digit

percentage fall, at constant currency exchange rates.

CFO Francois-Xavier Roger said the improved forecast

reflected strength across the board, not just Dupixent but also

new products such its Beyfortus shot to protect infants from a

common respiratory virus.

Investors have been closely watching the new launches, after

the French drugmaker unexpectedly abandoned its 2025 margin

targets in October to account for an expected increase in

research and development spending, sparking a selloff in its

stock

"We have not seen this level of top-line growth for quite

some time," Roger told reporters, pointing to a 10.2% rise in

overall sales in the second quarter.

"This is the evidence of the fact that significant

transformation of the company is working."

Operating income, excluding one-off items, rose 3.2% to 2.81

billion euros ($3.05 billion), above the 2.08 billion euros

expected on average by analysts in a company provided poll.

Sales of Dupixent, which is approved to treat conditions

such as asthma and eczema, rose 29.2% to 3.30 billion euros,

above analyst consensus estimates of 3.18 billion euros.

The anti-inflammatory drug, on which Sanofi partners with

Regeneron, has long been a growth driver, and the

company has been seeking to expand its use for other conditions.

Still, Sanofi has faced shareholder concerns that it is overly

reliant on Dupixent.

Quarterly sales of Beyfortus, which it sells with

AstraZeneca ( AZN ), totalled 18 million euros, versus

expectations of 15 million euros.

The company expects sales of the drug to exceed $1 billion

this year as it ramps up supply.

Sales of another new medicine, Altuviiio for treating

haemophilia, were 158 million euros, above estimates of 139

million.

($1 = 0.9226 euros)

(Reporting by Manas Mishra in Bengaluru; Editing by Janane

Venkatramanm, Kirsten Donovan

)

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