(Boursier.com) — There are many streetwalkers this weekend on the Parisian market. The most striking is clearly that of Sanofi whose title plunged 15.8% to 84.5 euros, its biggest daily fall since 1997. In the third quarter, the laboratory reported a drop of 10.4% in its operating income from activities, to 4,028 billion euros, for a net turnover of €11.964 billion (+3.2% at CER). The EPS of the activities is 2.55 euros, down 11.5% based on published data and 2.1% at CER, including the loss of exclusivity of Aubagio. The consensus forecast an EPS of $2.63 for activities of €12.09 billion.
The company confirmed that it expects an increase of around 5% in its activity EPS in 2023, excluding currency effects. The latter should nevertheless decrease between 1 and 4% in 2024 given a higher expected tax rate and the increase in research and development spending before rebounding strongly from 2025.
Sanofi has also announced that it is considering listing its Consumer Health business from the fourth quarter of next year, as it seeks to boost the development of new drugs. “Sanofi is studying possible separation scenarios, but believes that the route most likely to be taken would be that of an operation on the capital markets through the creation of a listed company whose headquarters would be in Paris,” the lab said. The timetable aims to maximize value creation and reward Sanofi shareholders and the operation will be subject to consultation with social partners, Sanofi underlined.
Sanofi reported third-quarter sales and profits below estimates, with the weaker-than-expected margin partly offset by lower operating expenses, according to Jefferies. The decision to prioritize research and development over margin could cause consensus estimates for 2024 to fall by 6-8%, the analyst writes. Jefferies says Sanofi’s plans to separate the consumer health business were “highly anticipated” and are positive.
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