Sanofi Forecasts Foreign Exchange, Record Flu Vaccine Sales To Boost Q4 Earnings

As Sanofi SA SNY schedules to report Q4 FY22 earnings early next month, it expects a positive currency impact in Q4 2022.
The company expects growth driven by Dupixent, while Neurology & Immunology be slightly down. It also expects record flu season sales.
Sanofi said its preliminary estimate of currency movements be approximately +4.5% and +5.5% on Q4 sales and a positive impact of +6% and +7% on its Q4 business EPS.
Sanofi expects a positive impact of +6.5% and +7.5% for FY22 sales and +8% and +9% for EPS. Previously, Sanofi forecasted a currency impact of +9.5% and +10.5% on FY22 EPS.
The company also said that an arbitration award concerning the U.S. litigation about the heartburn drug Zantac was expected to be rendered sometime in 2023 and at the end of the first quarter at the earliest.
Sanofi "remains confident in its legal defenses" regarding the litigation.
In December, the federal Multi-District Litigation court determined insufficient evidence that ranitidine can cause plaintiffs' alleged cancers.
This ruling significantly decreased the litigation scope and substantiated Sanofi's scientific defenses to the claims being asserted. In mid-December, Sanofi reached a favorable agreement to resolve Mr. Goetz's claims against it (California court case). With this settlement, Sanofi is not a defendant in any of the other California cases set for trial in 2023
Price Action: SNY shares are down 1.16% at $48.43 during the premarket session on the last check Wednesday.

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