Sanofi's Dupixent Was a Bright Spot -- Earnings Review

   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 [e-mail]

(END) Dow Jones Newswires

February 07, 2018 07:42 ET (12:42 GMT)

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