Sanofi (NASDAQ: SNY) shares fell premarket on Friday after fourth-quarter sales rose on the back of the blockbuster drug Dupixent, but the well-known vaccine business fell.
He also secured the French pharmaceutical giant FY23 outlook boosted by Dupixent demand.
Operating income per share in the fourth quarter rose +23.9% year-over-year (reported basis) (+17.4% at constant exchange rates or CER) to €1.71.
Q4 sales up +7.3% YoY (+2.6% CER) to ~10.73 billion euros. The company said exchange rate movements had a positive effect of 4.7 percentage points, mainly thanks to the US dollar.
Sales for the whole of 2022 increased by +13.9% YoY (+7% CER) to ~43 billion euros.
“Specialty Care delivered the highest sales among our businesses. Dupixent and Vaccines continue to be our leading growth drivers. We are particularly proud of the progress we have made in transforming R&D with multiple transformative drug approvals and new product launches across Specialty Care,” He said. Sanofi CEO Paul Hudson.
Pharmaceutical segment sales increased by +12.6% (+7.3% CER) to EUR 7.79 billion, mainly driven by the specialty care portfolio (+18.1%) with strong results from Dupixent while sales in General medicines decreased by -1.5% (-3.7% CER) to ~€3.38 billion, according to Sanofi.
In total Special care segment sales increased +26.6% (+18.1% CER) to 4.41 billion euros in the fourth quarter.
Sales from Two centswhich was developed in collaboration with Regeneron (NASDAQ: VLAD), increased by +55.1% year-on-year (+42.1% at CER) to EUR 2.4 billion. For the whole year 2022 Dupixent sales increased +58% YoY to (+43.8% CER) to €8.29 billion.
Neurology and immunology sales were mostly flat on a reported basis +0.2% YoY (but down -7% on CER) to €589m.
Sales of medicine for multiple sclerosis i promise decreased by -4.6% YoY at CER (+3.1% as reported) to EUR 493 million, mainly due to lower sales in the Rest of the World region as a result of generic competition in Canada, Sanofi noted.
Rheumatoid arthritis therapy Kevzara (collaboration with Regeneron) sales decreased by -17.6% at CER to EUR 79 million due to lower sales in Europe and the Rest of the World region.
A rare disease sales increased by +3.9% (+1.8% at CER) to 850 million euros.
Sanofi said Q4 Oncology sales fell by -7.9% (-11.7% CER) to EUR 221 million, reflecting the end of Libatya’s sales consolidation since the beginning of July. Regeneron has been granted worldwide exclusive license rights to Libtayo.
Excluding Libtayo, Oncology sales rose 3.4% at CER, with Sarclisa the main driver. A cure for multiple myeloma Sarclis sales increased by +59.3% year-on-year (+55.6% CER) to EUR 79 million.
A cure for prostate cancer Jevtana sales decreased by -20.9% YoY to (-24.5% CER) at €87 million due to the entry of generic competition in Europe at the end of March 2021 and lower sales in the US, reflecting increased competition.
Insulin Lantus sales fell by -26.4% (-27.6% CER) to 429 million euros.
Sanofi noted Q4 The vaccine segment sales fell -12.6 (-16.3% CER) to ~€1.72 billion mainly reflecting an accelerated supply phase for influenza vaccines between Q3 and Q4 2022. In full year 2022, vaccine sales grew +14.3 % Y/Y (+6.3% CER) to ~€7.23 billion, reflecting the recovery of Travel and Booster vaccines.
Flu vaccines sales fell by -26.6% YoY (-32% CER) to EUR 802 million in the fourth quarter. Polio/Pertussis/Hib (PPH) vaccine sales fell by -18.4% year-on-year (-9.1% CER) to EUR 640 million.
Consumer health protection (CHC) sales increased by +9.5% (+6.6% CER) to EUR 1.22 billion thanks to growth in all regions.
Dividend: Sanofi said a board meeting on February 2 proposed an annual dividend of 3.56 euros, an increase of 6.9%.
Given the expected generic competitors for Aubagio in the coming months, we remain confident in our outstanding commercial capabilities, including the ambition to achieve sales 10 billion euros for Dupixent in 2023which allows us to target low single-digit EPS growth for the year,” Hudson added.
Sanofi expects 2023 operating EPS to grow in the low single digits at CER, barring unforeseen major adverse events. Using average exchange rates for January 2023, the currency impact on operating earnings per share in 2023 is estimated to be between -3.5% to -4.5%.
CUT OUT -3.56% to $45.56 in pre-sale on February 3rd