Sanofi Q3 FY2025 earnings call

Key Points

• Growth momentum continued in Q3 with EUR 12.4 billion in sales, up 7% y-o-y. Dupixent reached EUR 4 billion in quarterly sales for the first time.
• New launches contributed EUR 1.8 billion, +40%, now 15% of total sales. New additions include Ayvakit, Nuvaxovid, and Wayrilz.
• Vaccine business: Q3 sales EUR 3.4 billion, impacted by price pressure and lower flu rates. Nuvaxovid started U.S. shipments, Beyfortus up 20% globally.
• Global health: 1 million patients treated for noncommunicable diseases since 2021, on track to 2 million by 2030.
• Financials: Net sales +7% at constant rates, gross margin +2.3 pts, business EPS EUR 2.91, +13% y-o-y.

In Q3, Sanofi's net sales grew 7% at constant exchange rates. The pharma segment was a key driver, with immunology and new launches contributing. New launches had 41% sales growth and now represent 15% of total sales. Dupixent saw 26% growth, reaching EUR 4 billion in quarterly sales. The vaccine business had Q3 sales of EUR 3.4 billion, down due to competitive price pressure and lower flu vaccination rates. Beyfortus showed 20% growth globally and is available in 40 countries.

Forward-Looking

• Reiterated full-year guidance of high single-digit sales growth and low double-digit business EPS growth at constant exchange rates.
• 2026 trends: R&D to increase moderately, sales/marketing investment for launches, G&A stable, expected EUR 0.5B capital gains from divestments, Amvuttra royalties ~EUR 700M, reduced Regeneron R&D reimbursement ~EUR 300M.

Risks

• Forward-looking statements subject to substantial risks and uncertainties.
• Regulatory and market competition risks, e.g., flu vaccination rate impact, competition in vaccine and pharma segments.

Q: Update on tolebrutinib SPMS regulatory debate and profitable growth for 2026?

A: PDUFA for tolebrutinib is December 28. Profitable growth means BOI and EPS growing faster than sales growth.

Q: U.S. policy updates and communication with administration?

A: Ongoing dialogue with U.S. government, focusing on communicating the value of treatments.

Q: Beyfortus Q4 ordering trends and ex-U.S. opportunities?

A: Q4 ordering trends are tracking, ex-U.S. has growth opportunities, Beyfortus remains favored in the U.S. market.