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Sanofi (SNY - Free Report) reported second-quarter 2021 adjusted earnings of 83 cents per American depositary share, which beat Zacks Consensus Estimate of 79 cents per share. Earnings rose 7.8% on a reported basis and 16.4% on a constant currency rate (“CER”) basis.
Net sales in the reported quarter increased 6.5% on a reported basis to $10.58 billion (€8.74 billion) despite currency headwinds of 5.9%. At CER, sales rose 12.4% year over year, driven by higher sales of Sanofi’s blockbuster eczema medicine, Dupixent, and vaccines. Sales also beat Zacks Consensus Estimate of $10.29 billion.
Sales rose 20.4% at CER in the United States and 4.2% in the Rest of the World (includes China, Japan, Brazil and Russia). In Europe sales increased 14.4%.
All growth/decline rates mentioned below are on a year-on-year basis and at CER.
Segmental Performance
Pharmaceuticals sales rose 11.9% in the quarter to €6.63 billion, driven by strong performance of Dupixent and other Specialty Care drugs, as well as higher sales in General Medicines in United States and Europe. Sales in the quarter benefited from favorable comparison with the year-ago quarter, which was hurt due to reversal of stockpiling benefits seen in the first quarter of 2020.
Sanofi Specialty Care GBU sales increased 22% to €3.08 billion, mainly driven by Dupixent.
Dupixent generated sales of €1.24 billion in the quarter, up 56.6% year-over-year. Sales of the drug in the United States rose 48.9%, driven by continued growth in atopic dermatitis and rapid uptake in asthma and chronic rhinosinusitis with nasal polyposis indications. Sales rose 79.8% in Europe and 101.3% in Rest of the World.
In neurology and immunology, Kevzara recorded sales of €56 million in the quarter, down 6.5%. Sanofi markets Dupixent and Kevzara in partnership with Regeneron (REGN - Free Report) . Aubagio sales declined 0.4% to €494 million.
Sales of rare disease drugs rose 8.8% to €759 million, driven by demand growth in Rest of World as well as in Europe. Myozyme sales rose 14.6% to €248 million. Fabrazyme sales were €204 million, up 9%. Cerezyme sales declined 1.7% to €165 million.
Oncology sales increased 25.4% to €226 million, driven by launches of Sarclisa and Libtayo. Key cancer drug Jevtana’s sales declined 9% to €114 million.
Rare blood disorders franchise recorded sales of €290 million, up 0.6% year over year as industrial sales of Alprolix and Eloctate to collaboration partner, Sobi, were lower than 2020 levels. Excluding industrial sales to Sobi, second-quarter sales were up 17.1%, driven by Alprolix, Eloctate and Cablivi. Sales of Eloctate declined 7.1% to €144 million in the quarter.
Sales in General Medicines GBU increased 4.2% to €3.54 billion, driven by the performance of core drugs like Toujeo, Soliqua, Praluent, Multaq, Lovenox and Plavix, among others.
The Diabetes franchise increased 1.6% to €1.14 billion, mainly due to higher sales in United States and Europe, as sales benefited from easy comparison to the second quarter of 2020. Sales of diabetes drugs in the United States rose 2.8%. In Europe, sales rose 1.4% while in Rest of the World, the same increased 0.8%.
Lantus sales decreased 2.7% to €637 million in the quarter due to pricing pressure, and patients switching to Toujeo and other biosimilar competitions. Toujeo generated sales of €247 million in the reported quarter, up 7.9% year over year.
Sales of Cardiovascular and Established Rx Products came in at €2.21 billion, up 5.9% mainly due strong growth of the core assets, including Lovenox, Thymoglobulin, Mozobil and Multaq.
Vaccines GBU sales rose 16.2% to €1.02 billion in the quarter, driven by recovery in demand for meningitis vaccines and booster vaccines in the United States. Sales also benefited due to easy comparison to second quarter of 2020.
Consumer Healthcare stand-alone unit generated sales of €1.08 billion, up 11.9%, driven by a strong performance of Digestive Wellness and Pain Care categories and offset by a weak cough and cold season due to social-distancing measures. Easy comparison with the second quarter of 2020 also benefited sales.
Cost Discussion
Selling, general and administrative expenses increased 3.1% at CER in the quarter, reflecting increased investments in Specialty Care, which offset the benefit from cost savings. Research and development expenses increased 3.3% at CER as higher investments behind priority assets were partially offset by efficiencies.
2021 Guidance
Sanofi revised its business guidance for 2021 upward. The company now expects earnings to grow around 12% at CER in 2021 compared with the previous projection of high-single-digit range. However, it anticipates a negative currency impact in the range of 4.0%-5.0% on earnings, in-line with the previous expectation.
Our Take
Sanofi’s quarterly results were strong, as it beat estimates for both earnings and sales. Dupixent continued its outstanding performance in the quarter. The drug has, in a very short time, become the key top-line driver for Sanofi. The recovery in vaccines sales also contributed to growth in the second quarter. As a result, the French drug giant revised its guidance upward for 2021.
Sanofi stock has risen 7.2% this year so far compared with the industry’s rally of 11.7%.
Image Source: Zacks Investment Research
We remind investors that Sanofi is working on two COVID-19 vaccine candidates, one each in partnership with Glaxo (GSK - Free Report) and Translate Bio (TBIO - Free Report) .
Sanofi is making an adjuvanted recombinant protein-based COVID-19 vaccine candidate in partnership with Glaxo. In May, the companies began a pivotal phase III study on their adjuvanted recombinant protein-based COVID-19 vaccine candidate. Sanofi and Glaxo anticipate an approval for their vaccine candidate in the fourth quarter of 2021, subject to late-stage study data readout and regulatory review.
Meanwhile, Sanofi/Translate Bio are developing a mRNA-based vaccine candidate, MRT5500, for treating COVID-19 infection. The candidate is currently being evaluated in a phase I/II study which is assessing its safety, immune response and reactogenicity.
Image: Bigstock
Sanofi (SNY) Q2 Earnings & Sales Beat, 2021 EPS View Raised
Sanofi (SNY - Free Report) reported second-quarter 2021 adjusted earnings of 83 cents per American depositary share, which beat Zacks Consensus Estimate of 79 cents per share. Earnings rose 7.8% on a reported basis and 16.4% on a constant currency rate (“CER”) basis.
Net sales in the reported quarter increased 6.5% on a reported basis to $10.58 billion (€8.74 billion) despite currency headwinds of 5.9%. At CER, sales rose 12.4% year over year, driven by higher sales of Sanofi’s blockbuster eczema medicine, Dupixent, and vaccines. Sales also beat Zacks Consensus Estimate of $10.29 billion.
Sales rose 20.4% at CER in the United States and 4.2% in the Rest of the World (includes China, Japan, Brazil and Russia). In Europe sales increased 14.4%.
All growth/decline rates mentioned below are on a year-on-year basis and at CER.
Segmental Performance
Pharmaceuticals sales rose 11.9% in the quarter to €6.63 billion, driven by strong performance of Dupixent and other Specialty Care drugs, as well as higher sales in General Medicines in United States and Europe. Sales in the quarter benefited from favorable comparison with the year-ago quarter, which was hurt due to reversal of stockpiling benefits seen in the first quarter of 2020.
Sanofi Specialty Care GBU sales increased 22% to €3.08 billion, mainly driven by Dupixent.
Dupixent generated sales of €1.24 billion in the quarter, up 56.6% year-over-year. Sales of the drug in the United States rose 48.9%, driven by continued growth in atopic dermatitis and rapid uptake in asthma and chronic rhinosinusitis with nasal polyposis indications. Sales rose 79.8% in Europe and 101.3% in Rest of the World.
In neurology and immunology, Kevzara recorded sales of €56 million in the quarter, down 6.5%. Sanofi markets Dupixent and Kevzara in partnership with Regeneron (REGN - Free Report) . Aubagio sales declined 0.4% to €494 million.
Sales of rare disease drugs rose 8.8% to €759 million, driven by demand growth in Rest of World as well as in Europe. Myozyme sales rose 14.6% to €248 million. Fabrazyme sales were €204 million, up 9%. Cerezyme sales declined 1.7% to €165 million.
Oncology sales increased 25.4% to €226 million, driven by launches of Sarclisa and Libtayo. Key cancer drug Jevtana’s sales declined 9% to €114 million.
Rare blood disorders franchise recorded sales of €290 million, up 0.6% year over year as industrial sales of Alprolix and Eloctate to collaboration partner, Sobi, were lower than 2020 levels. Excluding industrial sales to Sobi, second-quarter sales were up 17.1%, driven by Alprolix, Eloctate and Cablivi. Sales of Eloctate declined 7.1% to €144 million in the quarter.
Sales in General Medicines GBU increased 4.2% to €3.54 billion, driven by the performance of core drugs like Toujeo, Soliqua, Praluent, Multaq, Lovenox and Plavix, among others.
The Diabetes franchise increased 1.6% to €1.14 billion, mainly due to higher sales in United States and Europe, as sales benefited from easy comparison to the second quarter of 2020. Sales of diabetes drugs in the United States rose 2.8%. In Europe, sales rose 1.4% while in Rest of the World, the same increased 0.8%.
Lantus sales decreased 2.7% to €637 million in the quarter due to pricing pressure, and patients switching to Toujeo and other biosimilar competitions. Toujeo generated sales of €247 million in the reported quarter, up 7.9% year over year.
Sales of Cardiovascular and Established Rx Products came in at €2.21 billion, up 5.9% mainly due strong growth of the core assets, including Lovenox, Thymoglobulin, Mozobil and Multaq.
Vaccines GBU sales rose 16.2% to €1.02 billion in the quarter, driven by recovery in demand for meningitis vaccines and booster vaccines in the United States. Sales also benefited due to easy comparison to second quarter of 2020.
Consumer Healthcare stand-alone unit generated sales of €1.08 billion, up 11.9%, driven by a strong performance of Digestive Wellness and Pain Care categories and offset by a weak cough and cold season due to social-distancing measures. Easy comparison with the second quarter of 2020 also benefited sales.
Cost Discussion
Selling, general and administrative expenses increased 3.1% at CER in the quarter, reflecting increased investments in Specialty Care, which offset the benefit from cost savings. Research and development expenses increased 3.3% at CER as higher investments behind priority assets were partially offset by efficiencies.
2021 Guidance
Sanofi revised its business guidance for 2021 upward. The company now expects earnings to grow around 12% at CER in 2021 compared with the previous projection of high-single-digit range. However, it anticipates a negative currency impact in the range of 4.0%-5.0% on earnings, in-line with the previous expectation.
Our Take
Sanofi’s quarterly results were strong, as it beat estimates for both earnings and sales. Dupixent continued its outstanding performance in the quarter. The drug has, in a very short time, become the key top-line driver for Sanofi. The recovery in vaccines sales also contributed to growth in the second quarter. As a result, the French drug giant revised its guidance upward for 2021.
Sanofi stock has risen 7.2% this year so far compared with the industry’s rally of 11.7%.
Image Source: Zacks Investment Research
We remind investors that Sanofi is working on two COVID-19 vaccine candidates, one each in partnership with Glaxo (GSK - Free Report) and Translate Bio (TBIO - Free Report) .
Sanofi is making an adjuvanted recombinant protein-based COVID-19 vaccine candidate in partnership with Glaxo. In May, the companies began a pivotal phase III study on their adjuvanted recombinant protein-based COVID-19 vaccine candidate. Sanofi and Glaxo anticipate an approval for their vaccine candidate in the fourth quarter of 2021, subject to late-stage study data readout and regulatory review.
Meanwhile, Sanofi/Translate Bio are developing a mRNA-based vaccine candidate, MRT5500, for treating COVID-19 infection. The candidate is currently being evaluated in a phase I/II study which is assessing its safety, immune response and reactogenicity.
Sanofi Price, Consensus and EPS Surprise
Sanofi price-consensus-eps-surprise-chart | Sanofi Quote
Zacks Rank
Sanofi currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.