Sanofi's Dupixent Was a Bright Spot -- Earnings Review
07 February 2018 - 11:57PM
Dow Jones News
By Sonia Amaral Rohter
Sanofi SA (SAN.FR) on Wednesday reported its fourth-quarter
results and hosts a conference call at 2 pm CET. Here's what we
watched:
REVENUE: The French drug maker reported fourth-quarter sales of
8.69 billion euros ($10.75 billion), down 2% from the same period a
year earlier. Analysts had expected sales of about EUR8.7 billion,
according to a consensus forecast compiled by Vara Research.
EARNINGS: Sanofi reported fourth-quarter net profit of EUR129
million compared with EUR790 million in the same period a year
earlier. Business net income--the company's measure for adjusted
income excluding the impact of acquisitions and divestments--was
EUR1.33 billion for the quarter compared with EUR1.61 billion in
the same period last year. Vara Research's consensus forecast had
put business net income for the quarter at around EUR1.43
billion.
WHAT TO WATCH:
ZENTIVA: Sanofi offered an updated timeline on the divestment of
its European generics business, centered on Prague-based Zentiva.
Signing of definitive transaction agreements is expected in the
third quarter, the company said, though it didn't discuss potential
bidders. Zentiva's portfolio includes cardiovascular and
gastrointestinal medications as well as anti-inflammatory drugs and
painkillers.
DUPIXENT: The recently-launched eczema treatment Dupixent
"exceeded our expectations and drove Sanofi Genzyme's strong sales
growth," Sanofi Chief Executive Olivier Brandicourt said in a video
accompanying results. More than 33,000 patients have been
prescribed the drug in the U.S. he said, and the company reported
Dupixent sales of EUR118 million in the fourth quarter. Dupixent,
which launched in the U.S. in March, was approved in the EU in late
September and launched in the German market in December, the
company said.
DENGVAXIA: In November, Sanofi had said it would take a charge
of about EUR100 million in 4Q related to its dengue vaccine,
Dengvaxia. On Wednesday, Sanofi said that the overall impact of
Dengvaxia on fourth-quarter operating income was EUR158 million and
it booked an EUR87 million impairment of tangible assets linked to
the vaccine.
PLANS FOR BIOVERATIV AND ABLYNX: Analysts were looking for more
information on what Sanofi has in store for Bioverativ and Ablynx
once the acquisitions are completed, particularly given the size of
the deals. Addressing market concerns that the acquisitions were
expensive, Mr. Brandicourt said that the company had maintained its
"financial discipline" and that both deals were expected "to
deliver returns above our cost of capital within three years."
Sanofi didn't address any potential plans regarding future
acquisitions.
Write to Sonia Amaral Rohter at
sonia.amaralrohter@dowjones.com
(END) Dow Jones Newswires
February 07, 2018 07:42 ET (12:42 GMT)
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