by Ludwig Burger
(Reuters) – Sanofi suffered the biggest drop in the CAC 40 on Friday as the pharmaceutical group said it expected moderate growth in net earnings per share (EPS) in 2023, the success of its drug Dupixent expected to be offset by increased competition for Aubajio treatment and new product launch costs.
On the Paris Bourse, the Sanofi share fell 3.5% to 83.67 euros around 10:20 a.m. when the CAC 40 fell at the same time by 0.41%.
The French pharmaceutical group said it expects adjusted EPS to rise by a percentage “in the low single-digit range” (i.e. around 1%), without taking into account a currency effect of between around -3.5% to -4.5%.
Multiple sclerosis drug Aubagio, which made two billion euros in sales last year, will face competition from cheaper products in the coming months after losing patent protection, warned Sanofi.
The group, however, reaffirmed its ambition to reach sales of Dupixent, its treatment against asthma and eczema, of 10 billion euros this year, up more than 20% compared to 8.29 billion euros. euros earned in 2022.
DECLINE IN VACCINE SALES
In a note, analysts at Jefferies believe the 2023 EPS forecast “could disappoint” as it implies a consensus downgrade in the range of 2% to 4%.
Those of JPMorgan and Credit Suisse, for their part, point to lower-than-expected sales in the fourth quarter due to the weaker-than-expected performance of vaccine sales.
Over the period, the group’s revenues increased by 7.3% (+2.6% at constant exchange rates) to 10.725 billion euros, driven by sales of Dupixent, developed jointly with Regeneron, which jumped by 42% to 2.4 billion euros.
On the other hand, sales of vaccines fell by 16.3%, due to an earlier flu season which led to deliveries during the third quarter.
LAUNCH COSTS
Sanofi is due to launch two new products this year, the hemophilia A treatment Altuviiio and the antiviral drug Beyfortus, launches that are an important test for the group to regain investor confidence.
But these launches will weigh on profits this year, CFO Jean-Baptiste de Chatillon warned Friday during a press briefing.
“It will also incur some capital costs to support launches as it is important that these products are well known in the different regions where we are launching them,” he added.
Another important file for the year 2023, the publication of the results of a pivotal trial for Dupixent in the treatment of chronic obstructive pulmonary disease (COPD), a lung disease common in smokers.
Sanofi predicts Dupixent sales could reach up to 13 billion euros, but investors expect an even higher figure because the drug’s use for the treatment of COPD is not included in the target for group sale.
Analysts expect the results of the study to be released in the first half.
(Report Ludwig Burger and Dina Kartit, with the contribution of Clément Martinot, edited by Matthieu Protard and Blandine Hénault)
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