Sanofi Q3 Earnings Beat, Dupixent Drives Growth as Vaccines Decline

Core Insights - Sanofi reported third-quarter 2025 adjusted earnings of $1.70 per American depositary share, exceeding the Zacks Consensus Estimate of $1.60, with earnings of €2.91 per share reflecting a 7% increase on a reported basis and a 13.2% increase on a constant currency rate basis, attributed to cost control and operational efficiency [1][10] - Net sales increased by 2.3% on a reported basis to $14.52 billion (€12.43 billion), with a 7% rise on a constant currency basis, slightly surpassing the Zacks Consensus Estimate of $14.46 billion [1][10] Sales Performance - Sales in the United States rose by 11.1% at constant currency, 1.9% in the Rest of the World, and 2.8% in Europe [2] - Dupixent sales reached €4.2 billion, up 26.2% year over year, driven by strong prescription trends across all approved indications and geographies, surpassing the model estimate of €4.03 billion [3][10] - Altuviiio, a rare blood disorder drug, recorded sales of €294 million, up 81.4% year over year, primarily due to patient switches in the U.S. hemophilia A market [6] - Nexviazyme/Nexviadzyme sales were €200 million, up 27.6% year over year, while Myozyme sales declined by 25% to €122 million [7] - Cablivi sales increased by 9.5% to €66 million, while Eloctate sales fell by 14.6% to €77 million due to patient switches to Altuviiio [8] Vaccine Sales - Total vaccine sales declined by 7.8% to €3.36 billion, mainly due to lower flu vaccine sales, which dropped by 16.8% year over year to €1.53 billion [14][15] - Sales of AstraZeneca-partnered Beyfortus rose by 19.8% to €739 million, driven by geographical roll-out in Europe and the Rest of the World [16] Future Outlook - Sanofi maintained its 2025 sales and earnings growth expectations, anticipating a high single-digit percentage increase in sales and low double-digit percentage growth in earnings at constant currency [17][18] - The company has repurchased 86.1% of its €5 billion buyback program and plans to complete it this year [17] - Sanofi expects three potential new drug launches this year, with Qfitlia and Wayrilz already launched [21] - The company has been active in M&A, acquiring Blueprint Medicines and Vigil Neuroscience to enhance its presence in rare immunological diseases and neurology [22]