Sanofi Q3 FY2024 earnings call

Key Points

• Reaffirmed strong sales performance with Q3 sales of EUR13.4 billion, 16% CER growth.
• Dupixent continued robust growth, reached ~1 million patients on treatment globally, approved for COPD in multiple countries including US and China, with positive Phase 3 readouts in other indications.
• Vaccines business grew 26%, Beyfortus and Fluzone High-Dose established efficacy standards, with Beyfortus showing long-term protection against RSV hospitalization.
• Pharma launches had 67% growth, with newly launched medicines like Beyfortus, ALTUVIIIO, Nexviazyme contributing significantly.
• ESG commitments: Adopted Fairwage Network for living wages, committed to supporting supply chain partners to improve employee well-being and local economies.

Total Q3 sales reached EUR13.4 billion, a 16% increase in constant exchange rates (CER) and an estimated 11% excluding phasing. Dupixent contributed nearly EUR3.5 billion in the quarter, driven by global volume growth across all indications and geographies. The Vaccines business grew 26%,受益于流感和Beyfortus的分阶段销售以及Beyfortus的全球推广。 Pharma launches saw a 67% growth, with strong performance from 8 recently launched medicines. Opella had an 8% growth, predominantly from the strategic acquisition of Qunol in the US, bolstering presence in consumer healthcare market.

Forward-Looking Statements

• 2024 Business EPS upgraded to grow by at least low-single-digit % at CER from previously flat, reflecting strong business performance.
• Expect Q4 continued solid growth but at a lower level than Q3, with Beyfortus sales expected in line with Q3.
• Opella transaction expected to close in Q2 2025, proceeds to be redeployed in line with capital allocation policy.
• Target low-double-digit sales CAGR for Dupixent from 2023-2030 at CER.

Risks

• Forward-looking statements subject to substantial risks and uncertainties that may cause actual results to differ materially.
• Potential impact of competition on vaccine and pharma products, affecting market share and sales.
• Uncertainties related to regulatory approvals for new indications and clinical trial outcomes for pipeline assets.

Question and Answer

Q: Richard Vosser from JPMorgan asked about Beyfortus commercial potential beyond this season and Opella deal proceeds.

A: Thomas Triomphe responded on Beyfortus, stating confidence in its efficacy and market potential despite competition, while Francois Roger discussed Opella deal proceeds, expecting high-single-digit billion proceeds net of tax and transaction costs.

Q: Emily Field from Barclays inquired about Dupixent COPD launch metrics and Opella deal dilution.

A: Brian Foard provided early positive feedback on Dupixent COPD launch, while Francois Roger clarified that 2025 business EPS will increase over 2024 regardless of dilution.

Q: Graham Parry from BofA asked about Beyfortus countries in 2024 guidance and buyback authority.

A: Thomas Triomphe mentioned Beyfortus launched in ~20 countries with more to come, and Francois Roger stated ongoing conversation with Board on buybacks but no immediate details to disclose.

Q: Seamus Fernandez from Guggenheim asked about amlitelimab asthma strategy and biopharma growth post-Opella.

A: Houman Ashrafian discussed amlitelimab's potential in asthma and Francois Roger highlighted strong rebound in 2025 business EPS post-Opella separation.

Q: Jo Walton from UBS clarified Opella's inclusion in full-year numbers and tax rate expectations.

A: Francois Roger confirmed Opella will be a discontinued line item, and discussed expected tax rate changes in France but overall stable global tax rate.

Q: Peter Welford from Jefferies asked about Opella stranded costs and Novavax flu vaccine trials.

A: Francois Roger addressed minimal stranded costs, and Thomas Triomphe discussed Novavax flu vaccine Phase 1/2 plans and PED RSV meeting participation.

Q: Luisa Hector from Berenberg asked about flu COVID combination vaccine timeline and R&D transformation.

A: Thomas Triomphe provided insights on flu COVID combination vaccine timeline, and Paul Hudson discussed R&D transformation progress and pipeline governance.

Q: Thibault Boutherin from Morgan Stanley asked about radioligand positioning and supply chain.

A: Houman Ashrafian and Brendan O'Callaghan discussed radioligand's potential in oncology and supply chain collaboration with Orano Med.

Q: Steve Scala from TD Cowen inquired about Beyfortus durability data and pneumococcal vaccine Phase 3 plans.

A: Thomas Triomphe provided Beyfortus durability data details and confirmed on-track Phase 3 start for pneumococcal vaccine.

Q: Richard Parkes from BNP Exane asked about Beyfortus 2025 outlook and RSV market potential.

A: Thomas Triomphe reaffirmed Beyfortus growth in 2025 and stable RSV market anticipation for 2030.

Q: Eric Berrigaud from Stifel asked about Dupixent LOE extension and anti-TL1A pipeline update.

A: Roy Papatheodorou provided Dupixent LOE expiration details, and Houman Ashrafian mentioned anti-TL1A readouts expected in H2 2024.

Q: Florent Cespedes from Bernstein asked about Hidradenitis suppurativa strategy and Beyfortus capacity.

A: Houman Ashrafian discussed HS strategy with franchises and optionality, while Thomas Triomphe confirmed Beyfortus third manufacturing line in operation with no supply constraints for 2025.