Sanofi SA ((SNY)) has held its Q1 earnings call. Read on for the main highlights of the call.
Sanofi’s Q1 2025 earnings call showcased a strong financial and strategic performance, marked by significant growth in Dupixent sales and successful new product launches. The overall sentiment was positive, although challenges such as foreign exchange impacts and uncertainties in the U.S. flu vaccine market and potential tariffs were noted as potential headwinds.
Strong Start to 2025
Sanofi reported a robust 7% sales growth in the first quarter of 2025, driven by successful pharmaceutical launches, including Dupixent and Befortis in the vaccines portfolio. New product launches contributed EUR 1.1 billion in sales, accounting for 11% of the total sales, underscoring the company’s strategic focus on innovation and market expansion.
Dupixent Growth
Dupixent continued to be a major growth driver for Sanofi, with sales increasing by 20% in Q1 to reach EUR 3.5 billion. The U.S. market contributed EUR 2.5 billion to this figure, marking an 18% increase. Dupixent leads in total prescription share across all approved indications, highlighting its strong market position.
Vaccines Segment Performance
The vaccines segment delivered double-digit growth in the first quarter, driven by favorable Fortis phasing and new country launches. This performance underscores Sanofi’s strength in the vaccines market and its ability to capitalize on new opportunities.
Financial Performance
Sanofi’s financial performance was strong, with net sales increasing by 9.7% at constant exchange rates to EUR 9.9 billion. The gross margin improved to 78%, up 2.3 percentage points, and Business EPS rose by 15.7% to EUR 1.79, reflecting strong sales and operational efficiencies.
Pipeline and Approvals
Sanofi achieved six approvals in the first quarter, including for Dupixent in COPD in Japan and CSU in the U.S., as well as Sarclisa in several countries. These approvals demonstrate Sanofi’s commitment to expanding its product offerings and enhancing its competitive edge.
Foreign Exchange Impact
The foreign exchange impact is estimated to be around minus 1.5% on sales and around minus 2% on EPS for 2025. This presents a challenge for Sanofi as it navigates the complexities of global markets.
Challenges in U.S. Flu Vaccine Market
Sanofi faces soft demand and intense pricing pressure in the U.S. flu vaccine market, which could impact sales growth. The company is aware of these challenges and is likely strategizing to mitigate their effects.
Uncertainty with U.S. Tariffs
Potential U.S. tariffs could impact Sanofi’s operations, although specific scenarios remain speculative and are not fully disclosed. This uncertainty adds a layer of complexity to the company’s strategic planning.
Forward-Looking Guidance
Sanofi provided a robust outlook for the remainder of 2025, with expectations of continued strong sales growth driven by Dupixent and new product launches. The company plans to maintain its effective tax rate around 20% for the full year and continue its focus on R&D and strategic acquisitions. Sanofi also announced a EUR 5 billion share buyback program, with 76% completed by the date of the call, reflecting confidence in its financial health and future prospects.
In conclusion, Sanofi’s Q1 2025 earnings call highlighted a strong start to the year with significant growth in key areas such as Dupixent and vaccines. While challenges such as foreign exchange impacts and uncertainties in the U.S. market persist, the company’s strategic initiatives and robust financial performance provide a positive outlook for the future.