Sanofi SNY reported first-quarter 2025 adjusted earnings of 94 cents per American depositary share, which beat the Zacks Consensus Estimate of 90 cents per share. Earnings of €1.79 per share rose 17.0% on a reported basis and 15.7% on a constant currency rate (“CER”) basis.
Net sales rose 10.8% on a reported basis to $10.42 billion (€9.9 billion). Exchange rate movements benefited sales by 1.1% in the quarter. Sales rose 9.7% on a CER basis. Sales, however, missed the Zacks Consensus Estimate of $10.63 billion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Sales rose 15.4% at CER in the United States, 8.4% in the Rest of the World (including China, Japan, Brazil and Russia) and 0.5% in Europe.
All growth rates mentioned below are on a year-on-year basis and at CER.
Dupixent Continues to Drive SNY’s Top Line
In Immunology, Dupixent generated sales of €3.48 billion in the quarter, up 20.3% year over year, driven by strong prescription trends in all geographies. Dupixent sales beat our model estimate of €3.38 billion.
Sales of the drug in the United States rose 18.4%, driven by strong demand in its approved indications — atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis. However, customary dynamics of the annual reset of insurance plans in the first quarter hurt sales slightly.
Dupixent sales rose 23.5% in Europe and 26.5% in the Rest of the World, driven mainly by sales in Japan.
Dupixent was approved for its sixth indication — chronic obstructive pulmonary disease (COPD) — in Europe in July and in the United States in September 2024. Sanofi said that global launches for the COPD indication are underway and sales are expected to pick up momentum as the year progresses. Dupixent was approved for its seventh indication, chronic spontaneous urticaria, in the United States last week.
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.
SNY’s Rare Disease Drugs’ Performance
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 €251 million in the first quarter of 2025 compared with €230 million in the previous quarter, mainly driven by patient switches in the U.S. hemophilia A market. More than 87% 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.
Nexviazyme/Nexviadzyme recorded sales of €195 million, up 26.3% year over year. While sales were strong in Europe and the Rest of the World segments, growth slowed down in the United States as a high rate of conversion from Myozyme/Lumizyme has already been achieved.
Xenpozyme recorded sales of €56 million in the quarter, up 60% year over year.
Among the rare disease drugs in the Pompe franchise, Myozyme sales declined 29.8% year over year to €135 million due to patients switching to Nexviazyme. Fabrazyme sales were €262 million, up 2.4% year over year. In the Gaucher franchise, Cerezyme sales declined 9.3% year over year to €190 million.
Cablivi recorded sales of €67 million, up 11.9% year over year, driven by patient growth in the United States and launches in Europe and Rest of World.
Among the rare blood disorder drugs, Eloctate sales declined 20.9% to €70 million in the quarter due to patients switching to the new drug Altuviiio in the United States and Japan.
SNY’s Neurology, Oncology & Other Drugs
In neurology medicines, Aubagio sales declined 37.3% year over year to €65 million due to generic competition.
In Oncology, Sarclisa sales rose 26.4% year over year to €136 million.
In Others, Toujeo recorded sales of €354 million, up 10% year over year. Lantus sales rose 24.4% to €450 million.
Rezurock recorded sales of €131 million, up 36.6% year over year. Tzield sales were €11 million in the quarter, compared with €18 million in the previous quarter.
Plavix sales rose 2.5% to €244 million. Lovenox sales decreased 6.5% to €238 million.
SNY’s Vaccine Sales Rise
Total vaccine sales increased 11.4% to €1.33 billion, driven by favorable Beyfortus phasing. Vaccine sales beat our estimates of €1.22 billion.
Sales of flu vaccines declined 1.4% year over year to €73 million due to difficult comparison with the year-ago quarter. Sales of Polio/Pertussis/Hib (PPH) vaccines rose 3.8% year over year to €668 million due to higher demand for booster vaccines for re-vaccinations. Sales of meningitis, travel and other endemic vaccines rose 3.5% year over year to €302 million in the quarter.
Sanofi and partner AstraZeneca’s AZN respiratory syncytial virus or RSV antibody Beyfortus (nirsevimab) recorded sales of €284 million in the first quarter, up 54.9% year over year, driven by higher sales in Germany and Japan. In the United States, the immunization rate slowed down sequentially.
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.
SNY Maintains 2025 Guidance
Sanofi maintained its previously issued guidance for 2025. It expects sales to rise by a mid-to-high single-digit percentage at CER.
Sanofi expects earnings to rebound strongly in 2025 with an expectation of a low double-digit percentage growth at CER (before stock buyback) versus 4.1% in 2024.
In January, Sanofi announced a €5 billion ($5.2 billion) buyback program for 2025. Sanofi has already repurchased 72% of €5 billion and plans to complete the program this year.
Our Take on SNY’s Q1 Results
Sanofi’s first-quarter results were mixed as it beat estimates for earnings while missing the same for sales. Higher sales of Dupixent and contributions from new products like Altuviiio and Beyfortus were partially offset by lower sales of flu vaccines and Aubagio due to generic competition. Sales of its newly launched drugs and vaccines rose 46.5% in the quarter.
Sales of diabetes products, Lantus and Toujeo, also rose in the quarter.
Its adjusted earnings per share rose 15.1% at CER in the quarter, setting the stage for the company’s expectations for EPS to rebound in 2025.
Sanofi’s shares were down 1% in pre-market trading on Thursday.
Sanofi’s stock has risen 9.9% so far this year against the industry’s decline of 2.2%.
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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/fitusiran, which was approved by the FDA in March for treating hemophilia A and B. 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 in the second half of the year.
Sanofi also boasts a strong pipeline in immunology, rare diseases and oncology.
In October 2023, Sanofi announced its intention to separate its Consumer Healthcare (CHC) unit through the creation of a publicly listed entity headquartered in Paris to be called Opella. Sanofi is on track to complete its transaction to sell a majority stake in Opella to private equity firm CD&R in the second quarter.
SNY’s Zacks Rank & Stock to Consider
Sanofi currently has a Zacks Rank #3 (Hold).
Sanofi Price and Consensus
Sanofi Price and Consensus
Sanofi price-consensus-chart | Sanofi Quote
A better-ranked large drugmaker is Pfizer PFE, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Pfizer’s 2025 earnings have risen from $2.95 to $2.99 per share over the past 60 days. Estimates for 2026 have risen from $2.99 to $3.02 per share over the same timeframe. So far this year, Pfizer’s stock has declined 14.2%.
Pfizer exceeded earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 44.16%, on average.
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