Sanofi Repurchase and Growth Plan Driven by Focus on Specialty Drugs
Sanofi announces a €5 billion stock repurchase plan alongside projected faster profit growth for 2025, driven by its transition from consumer health to high-growth pharmaceuticals.
Key Financial Projections:
* Earnings per share (excluding exceptional items) anticipate a low double-digit percentage increase at constant currencies in 2025, compared to 4.1% growth in 2024.
* Sales growth is expected to reach mid-to-high single digits for the year.
Strategic Focus:
* The repurchase plan follows Sanofi's agreement to sell a controlling stake in its consumer health unit, Opella, to Clayton Dubilier & Rice.
* CEO Paul Hudson emphasizes the company's commitment to drug development, aiming to create more blockbusters akin to Beyfortus, its respiratory syncytial virus (RSV) vaccine.
* Beyfortus sales reached €841 million in Q4 2024, exceeding analysts' expectations.
* Sanofi expects further growth for Beyfortus in 2025 but at a slower pace compared to its initial launch.
* Competition is anticipated from Merck & Co., which is developing a rival RSV vaccine.
Other Important Updates:
* Sanofi's asthma drug Dupixent achieved €3.5 billion in sales in Q4 2024, slightly below estimates.
* Demand for Dupixent is expected to accelerate due to its use in treating chronic obstructive pulmonary disease (COPD).
* Sanofi's share price has risen by approximately 9% in 2025, outperforming the broader European pharmaceutical sector.
* The company expresses willingness to engage with the Biden administration on healthcare access.