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Sanofi SNY reported second-quarter 2025 adjusted earnings of 90 cents per American depositary share, which missed the Zacks Consensus Estimate of 96 cents per share. Earnings of €1.59 per share rose 1.9% on a reported basis and 8.3% on a constant currency rate (“CER”) basis.
Net sales rose 6% on a reported basis to $11.33 billion (€10.0 billion). Sales rose 10.1% on a CER basis. Sales missed the Zacks Consensus Estimate of $11.53 billion.
Sales rose 17.3% at CER in the United States, 4.4% in the Rest of the World (including China, Japan, Brazil and Russia) and 3.0% in Europe.
All growth rates mentioned below are on a year-on-year basis and at CER.
In Immunology, Dupixent generated sales of €3.83 billion in the quarter, up 21.1% year over year, driven by strong prescription trends across all approved indications and geographies. Dupixent sales beat our model estimate of €3.78 billion.
Dupixent is approved for atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis, prurigo nodularis and chronic obstructive pulmonary disease (COPD) in the United States as well as several other countries. Dupixent was approved for its seventh indication, chronic spontaneous urticaria, in April 2025 and for its eighth indication, bullous pemphigoid, in June 2025, in the United States.
Sales of the drug in the United States rose 22.7%, driven by strong demand for all its approved indications as well as a strong launch for the COPD indication.
Dupixent sales rose 21.3% in Europe and 12.9% in the Rest of the World, driven mainly by sales in Japan, which partially offset the impact of national reimbursement drug list renewal in China.
Sanofi markets Dupixent in partnership with Regeneron REGN. While sales are recorded by Sanofi, Regeneron records its share of profits/losses in connection with global sales of Dupixent.
Among Sanofi’s rare disease drugs, its new rare blood disorder drug, Altuviiio, a once-weekly new class of factor VIII therapy for hemophilia A, recorded sales of €291 million in the second quarter of 2025 compared with €251 million in the previous quarter, mainly driven by patient switches in the U.S. hemophilia A market and launch in Japan. 82% of Altuviiio’s sales were in the United States.
With the drug rapidly gaining market share, Sanofi expects it to become a blockbuster product in 2025.
Among the rare disease drugs in the Pompe franchise, Nexviazyme/Nexviadzyme recorded sales of €192 million, up 17.3% year over year, mainly driven by strong sales growth in Europe. Myozyme sales declined 19.4% year over year to €140 million due to patients switching to Nexviazyme. Fabrazyme sales were €263 million, down 0.4% year over year. In the Gaucher franchise, Cerezyme sales declined 7.8% year over year to €173 million.
Cablivi recorded sales of €69 million, up 29.6% year over year, driven by patient growth in the United States and Europe.
Among the rare blood disorder drugs, Eloctate sales declined 35.2% to €65 million in the quarter.
Xenpozyme recorded sales of €54 million in the quarter, up 48.6% year over year.
New drug Qfitlia (fitusiran), which was approved by the FDA in March for treating hemophilia A and B, generated €1 million in sales.
In neurology medicines, Aubagio sales declined 29.0% year over year to €73 million due to generic competition.
In Oncology, Sarclisa sales rose 19.0% year over year to €140 million.
In Others, Toujeo recorded sales of €338.0 million, up 10.5% year over year. Lantus sales rose 11.5% to €426 million.
Rezurock recorded sales of €132 million, up 21.1% year over year. Tzield sales were €18 million in the quarter, up 63.6% year over year.
Plavix sales rose 1.3% to €229 million. Lovenox sales decreased 15.6% to €209 million.
Total vaccine sales increased 10.3% to €1.21 billion, mainly due to the rollout of Beyfortus in international markets. Vaccine sales beat our estimate of €1.15 billion.
Sales of flu vaccines rose 26.1% year over year to €141 million due to a one-time gain from late-season immunizations in the United States and Europe. Sales of Polio/Pertussis/Hib (PPH) vaccines rose 1.3% year over year to €693 million due to higher demand for pediatric combination vaccines in Rest of World. Sales of meningitis, travel and other endemic vaccines rose 7.4% year over year to €307 million in the quarter.
Sanofi and partner AstraZeneca’s AZN respiratory syncytial virus or RSV antibody Beyfortus (nirsevimab) recorded sales of €72 million in the second quarter, up 322.2% year over year, driven by higher sales in Rest of World.
AstraZeneca-partnered Beyfortus was launched in the United States and Europe for preventing RSV-related lower respiratory tract disease in newborns and infants in 2023.
Sanofi raised its previously issued sales growth guidance for 2025. It expects sales to rise by a high single-digit percentage at CER, up from the prior expectation of a mid-to-high single-digit percentage.
Sanofi expects earnings to rebound strongly in 2025 with an expectation of a low double-digit percentage growth at CER (before stock buyback). Though Sanofi reaffirmed its previously issued earnings growth guidance, the range now includes all expenses from newly acquired businesses.
In January, Sanofi announced a €5 billion ($5.2 billion) buyback program for 2025. Sanofi has already repurchased 80.3% of €5 billion and plans to complete the program this year.
Sanofi’s second-quarter results were soft as it missed estimates for earnings as well as sales. Higher sales of Dupixent, contributions from new products like Altuviiio and improved vaccine sales led to 10.1% sales growth in the quarter. Dupixent continues to be the key top-line driver with sales rising more than 20% even after eight years on the market. Sales of its nine newly launched drugs and vaccines rose 47.3% in the quarter.
Though Sanofi refined its 2025 sales guidance to the upper end of its previous range, it maintained the earnings growth expectations. Sanofi’s shares were down more than 4% in pre-market trading on Thursday due to the earnings miss.
Sanofi’s stock has risen 5.4% so far this year against the industry’s decline of 1.5%.
Several new drugs launched in the past couple of years have become significant contributors to Sanofi's accelerated top-line growth profile. Sanofi expects three potential new drug launches this year, including Qfitlia. Regulatory applications seeking approval for tolebrutinib for non-relapsing secondary progressive multiple sclerosis or nrSPMS and rilzabrutinib for immune thrombocytopenia are under review in the United States, with FDA decisions expected later this year.
Sanofi also boasts a strong pipeline in immunology, rare diseases and oncology.
Sanofi has also been active on the M&A front. In July, it completed the previously announced acquisition of Blueprint Medicines, which will expand its presence in rare immunological diseases. In May, it offered to acquire Vigil Neuroscience VIGL, which will boost Sanofi’s neurology pipeline. The VIGL transaction is expected to be closed in the third quarter. Last week, it announced the proposed acquisition of private biotech, Vicebio Ltd, which will expand its respiratory vaccines pipeline.
In April 2025, Sanofi closed its previously announced transaction to sell a 50% controlling stake of its Consumer Healthcare business, Opella, to private equity firm CD&R. Sanofi retains a 48.2% stake in Opella.
Sanofi currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sanofi price-consensus-chart | Sanofi Quote
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This article originally published on Zacks Investment Research (zacks.com).
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