Sanofi Reports Q2 2020 Financial Results: Sales of €8.207 Billion and Dupixent Growth of 70%

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On July 29, Sanofi released its financial report for the second quarter of 2020, with net sales of €8.207 billion, a year-on-year decrease of 4.9%; net income of €1.601 billion, a year-on-year increase of 3.6%; and business earnings per share (EPS) of €1.28, a year-on-year increase of 3.2%. In the first half of the year, net sales were €17.18 billion, an increase of 0.9%; net income was €3.521 billion, an increase of 8.7%; and business EPS was €2.81, an increase of 8.1%.

In the second quarter, Sanofi's global core business performed as follows:

Sales of specialized care products increased by 17.4%, primarily driven by Dupixent (up 70% to $858 million);

Vaccine sales declined by 6.8%, primarily due to the impact of global lockdowns, while demand for influenza vaccines in the Southern Hemisphere remained strong;

Generic pharmaceutical business sales decreased by 12.7%, partly due to delays in elective surgeries and reduced channel inventory;

The consumer healthcare business declined by 8.0%, reflecting reduced consumer inventory, lower pharmacy traffic, and the voluntary recall of Zantac.

In the second quarter, Sanofi achieved significant milestones in R&D transformation, milestone achievements, and regulatory affairs, including:

Dupixent was approved in China as the first biologic for the treatment of moderate-to-severe atopic dermatitis in adults in that market, and it is approved in the United States for children (aged 6–11 years) with moderate-to-severe atopic dermatitis;

Sarclisa was approved in the European Union for the treatment of adult patients with relapsed or refractory multiple myeloma; the pivotal IKEMA study met its primary endpoint in the interim analysis.

Libtayo demonstrates clinically meaningful and durable efficacy in patients with advanced basal cell carcinoma;

US FDA Grants Priority Review to Sutimlimab for the Treatment of Cold Agglutinin Disease;

Reached cooperation agreements with Translate Bio, Kiadis Pharma, and Kymera Therapeutics.

Sanofi also raised its full-year 2020 business EPS guidance. The company currently expects business EPS to grow by 6%-7% in 2020 (at constant exchange rates), unless unforeseen significant adverse events occur. Using the average exchange rates from July 2020, the impact of currency on 2020 business EPS is estimated to be between -3% and -4%.

Sanofi CEO Paul Hudson stated that despite some adverse factors brought by the pandemic, the company still achieved growth in business EPS, thanks to the continued strong sales of Dupixent and a focus on efficiency and prudent spending.

Paul Hudson has served as CEO of Sanofi for nearly a year, unveiling his vision for the company at the end of last year. The company is shifting away from areas where it has struggled in recent years, including diabetes and cardiovascular diseases, to double down on fields where it believes it can succeed. Sanofi is focusing on “first-in-class” or “best-in-class” drugs, with particular emphasis on the prospects of Dupixent. Hudson believes that this drug has the potential to generate annual sales of €10 billion or more.

Currently, Dupixent is available in 44 countries, with launches expected in an additional 54 countries this year. Globally, 150,000 patients are currently receiving treatment. In China, Dupixent was approved in June of this year, and it is estimated that more than 150,000 patients will be eligible for treatment. At the end of June, EvaluatePharma released a forecast report projecting that Dupixent’s sales will reach $9.386 billion in 2026, making it the best-selling anti-inflammatory drug worldwide.

As part of its transformation plan, Sanofi is working to reduce annual expenses by €2 billion before 2022. In the first half of this year, Sanofi achieved cost savings of €990 million through prudent spending, including significant reductions in travel and events, printed promotional materials, supplier base, and training costs.

Reference Source:

1、Sanofi H1 2020 business EPS growth of 9.2% driven by transformation

2、Sanofi touts Dupixent's pandemic 'resilience' as cost cuts add up