French Pharma Giant Sanofi's Q4 Earnings Hit By Aubagio Generic Competition, Helped By Flagship Eczema And Newly Launched Hemophilia Drugs

Sanofi SA SNY says its fourth-quarter operating income fell 5.2% to €2.6 billion, up 5.3% on constant currency.

Revenues increased 1.8% to €10.92 billion ($11.75 billion), up 9.3% on constant currency, missing the consensus of $12.26 billion.

Specialty Care grew 13.7%, driven by the Dupixent and Altuviiio launch, more than offsetting competition from Aubagio generics in all key markets. 

“At the same time, we are taking steps to become a pure-play biopharma company with more than €10bn sales contribution from Pharma launches by 2030,” commented CEO Paul Hudson.

Also Read: Expensive Drugs For Americans In 2024? Drugmakers Including Pfizer, Sanofi Mull Price Increase In January.

In January, Sanofi agreed to acquire assets and liabilities associated with Inhibrx Inc’s (NASDAQ: INBX) INBRX-101, an optimized, recombinant alpha-1 antitrypsin augmentation therapy currently in a registrational trial for alpha-1 antitrypsin deficiency.

Quarterly sales of eczema and asthma drug Dupixent increased 31.3% to €2.99 billion.

Dupixent total prescriptions increased 30% Y/Y, and new-to-brand prescriptions grew 24%.

Altuviiio, once-weekly first-in-class high-sustained factor VIII therapy for hemophilia A, was launched at the end of March 2023 in the U.S. and generated sales of €94 million in the fourth quarter. 

The vaccine sales increased by 21.1% to €1.99 billion, mainly due to the strong uptake of Beyfortus, reaching €410 million in the second quarter of its launch, partly offset by lower Influenza and COVID-19 vaccine sales.

Revenues from Aubagio plunged 74% to 141 million euros in the quarter. 

The company added that Francois-Xavier Roger, Nestle’s finance chief, would take over as Sanofi’s chief financial officer on April 1, succeeding Jean-Baptiste de Chatillon, who will step down to head a charity foundation.

Guidance: Sanofi reiterated that it expects 2024 adjusted EPS to decrease by a “low single-digit” percentage, citing higher taxes. EPS should see a strong rebound next year, it reaffirmed.

Read Next: Regeneron/Sanofi’s Largest Selling Drug Dupixent Scores FDA Approval For Infants With Esophagus Inflammation.

Last month, Sanofi said it would sponsor the 2024 Olympic Games in Paris to rejuvenate its image, attract a younger workforce, and showcase its commitment to diversity and innovation.

Price Action: SNY shares are down 2.40% at $48.70 during the premarket session on the last check Thursday.

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