Sanofi last week forecast faster earnings growth this year on strong demand for its drug Dupixent and for its flu vaccines.
The company said in a statement that it now expects 2022 adjusted earnings per share to grow by about 16 per cent, not taking into account an expected positive currency impact of between 9.5 per cent and 10.5 per cent. It had previously forecast growth of 15 per cent.
Sanofi reported a 26.5 per cent rise in third-quarter business operating income, or adjusted earnings before interest and tax, to 4.5 billion euros ($4.49 billion), well ahead of an average analyst estimate of 4.17 billion euros.
Sanofi shares plunged in August after disappointing trial results of a once-promising breast cancer drug candidate heightened concerns about the company’s development pipeline and investors also fretted over legal claims that heartburn drug Zantac caused cancer.
The shares have not recovered much and Credit Suisse analysts have said Sanofi is trading about one third below its European peers, relative to estimated 2023 earnings.
Jean-Baptiste de Chatillon, Finance Chief, who has described the discount as grossly overdone, said last week that Sanofi would follow through on its strategy. “We know we have some headwinds, and we are there to fight them and to demonstrate to our shareholders that we can create more value,” he told journalists in a call.
Sales from influenza vaccines jumped by a currency-adjusted 32.4 per cent to 2 billion euros, surpassing an analyst consensus of 1.6 billion euros, on swift uptake of a more expensive new high-dose shot.
A strong US dollar also boosted the value of overseas group revenues.
Edits by EP News Bureau