Sanofi forecast a slowdown in profit growth this year as generic competition ratchets up for multiple sclerosis drug Aubagio.
(Bloomberg) — Sanofi forecast a slowdown in profit growth this year as generic competition ratchets up for multiple sclerosis drug Aubagio.
Adjusted earnings per share are likely to grow at a low single-digit percentage at constant currencies, compared to 26% growth last year, the Paris-based company said Friday. The shares fell as much as 3.3%.
Sanofi is bracing for challenges to its growth as its aging medicine Aubagio will face cheaper competition in the US this spring. While Dupixent, a treatment for asthma and skin ailments, continues to drive Sanofi’s growth, the French drugmaker will need to increase spending on marketing this year as it launches new products including Beyfortus for preventing RSV in kids and Altuviiio for hemophilia.
The drugmaker forecast that Dupixent sales could top €10 billion ($10.9 billion) this year after its revenue soared 44% in 2022. Sanofi is expected to release data on Dupixent as a treatment for the COPD respiratory disease in the coming months.
Investors are also looking for signs that Sanofi is ready to engage in large acquisitions following its unsuccessful approach last year for Horizon Therapeutics, which was later bought by Amgen Inc.
Adjusted earnings were 1.71 euros per share in the fourth quarter. Analysts expected 1.72 euros.
Sanofi tends to publish a conservative outlook early in the year, often raising the forecast later, analysts said.
What Bloomberg Intelligence Says
Sanofi’s Conservative 2023 Guide Leaves Room for Upgrades: React
“Sanofi’s low single-digit EPS guidance looks a touch lighter than MODL consensus — possibly due to currency assumptions — though likely reflects margin pressure from Aubagio (5% of 2022 sales) genericization, the expected launches of Altuviiio (hemophilia A) and Beyfortus (RSV), and a growing pipeline. We’d nevertheless caution that Sanofi tends to favor a conservative early year view, which is raised as the year progresses, with today’s target seemingly allowing for that.”
—John Murphy, BI pharma analyst
(Updates with shares in second paragraph)
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