Sanofi Misses on Q4 Earnings & Sales, Expects Higher Profits in 2025

Core Viewpoint - Sanofi's fourth-quarter 2024 results showed a miss in both adjusted earnings and sales estimates, with a notable decline in earnings year-over-year, despite growth in certain product lines like Dupixent and new rare disease drugs [1][18][21]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were 70 cents, missing the Zacks Consensus Estimate of 71 cents, with reported earnings of €1.31 per share declining 14.9% [1][18]. - Net sales increased by 9.1% to $11.27 billion (€10.56 billion), but fell short of the Zacks Consensus Estimate of $11.39 billion [2][18]. - Sales growth was 10.3% on a constant currency basis, with U.S. sales rising 13.3%, while Europe saw a 6.0% increase [2]. Product Performance - Dupixent sales reached €3.46 billion, up 16.0% year-over-year, but missed the model estimate of €3.58 billion [3][18]. - Altuviiio, a new treatment for hemophilia A, generated sales of €230 million, up from €172 million in the previous quarter, with over 85% of sales in the U.S. [7]. - Nexviazyme/Nexviadzyme recorded sales of €184 million, up 42.0% year-over-year, while Xenpozyme sales rose 50% to €38 million [8]. Vaccine Sales - Total vaccine sales increased by 10.8% to €2.2 billion, driven by the success of Beyfortus, which recorded sales of €841 million, up 107% year-over-year [12][14]. - Sales of flu vaccines declined 36.8% to €454 million due to early deliveries in the previous quarter [13]. Future Outlook - Sanofi expects sales growth in 2025 to be in the mid-to-high single-digit percentage range at constant currency [17]. - A €5 billion ($5.2 billion) buyback program was announced for 2025, with expectations for business EPS to increase at a low double-digit percentage [17][21]. - The company anticipates Dupixent to achieve around €22 billion in sales by 2030 [19]. Market Reaction - Despite missing earnings estimates, Sanofi's shares rose nearly 3% in pre-market trading, reflecting investor optimism regarding future growth and the buyback announcement [21].