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At its R&D event held on Dec 6, Sanofi (SNY - Free Report) forwarded ambitious plans to accelerate its future growth. It also stated the intent to establish itself as a powerhouse in the immunology area.
Sales Outlook
Sanofi expects to generate annual sales of over €10 billion by 2030, driven by recently launched products like Altuviiio (for hemophilia A), Sarclisa (for multiple myeloma) and Tzield (for diabetes) and future pharmaceutical products, which are currently under late-stage development.
Management also reiterated its expectation to generate more than €10 billion in annual vaccine sales by 2030. The annual vaccine sales also include the recently-approved RSV antibody Beyfortus, which Sanofi markets in collaboration with AstraZeneca (AZN - Free Report) .
Over the next few years, Sanofi expects to record low double-digit annual sales growth from blockbuster anti-inflammatory drug Dupixent. The upside is expected to be driven by a potential approval in the chronic obstructive pulmonary disease (COPD) space, which represents an immense opportunity for the company.
Dupixent is a key driver of Sanofi’s topline. The drug is marketed by the company in partnership with Regeneron (REGN - Free Report) . Per the terms of the partnership, sales of Dupixent are recorded by Sanofi, while Regeneron records its share of profits/losses in connection with the global sales of the drug.
Year to date, Sanofi’s stock has declined 5.1% compared with an increase of 5.0% of the industry.
Image Source: Zacks Investment Research
Pipeline Development
The France-based pharma giant also claimed to have 12 drugs under clinical development, which have blockbuster potential and are capable of reaching peak sales in the range of €2.0-€5.0 billion.
Out of these 12 candidates, management claims three candidates, namely amlitelimab (for eczema), frexalimab (for multiple sclerosis) and SAR441566 (for rheumatoid arthritis), as "pipeline-in-a-product" assets which have the potential to generate more than €5 billion in peak sales. Per Sanofi, the "pipeline-in-a-product" assets are multi-indication assets that have the potential to treat several conditions and currently have low market penetration.
To achieve these targets, Sanofi announced that in the future, it will increase its R&D investments to strengthen its position in immunology treatments. The raised R&D spending are likely to lead to a 50% increase in late-stage studies in 2024 and 2025.
Through this increased R&D investment, management expects 25 data readouts for assets that are in mid- to late-stage development and up to 19 regulatory submissions for its pharma assets over the next two years.
Our Take
The above announcements come just a little over a month after Sanofi gave a disappointing preliminary outlook for 2024 and 2025. At its third-quarter earnings conference call, management scrapped its previously issued 32% adjusted operating margin target for 2025 to account for increased R&D spending and a higher tax rate. Hence, investors have been seeking clarity from the management on the company’s long-term financial outlook.
In its third-quarter 2023 earnings results, Sanofi’s top line was driven by higher Dupixent sales and contribution from AstraZeneca-partnered Beyfortus and Altuviiio, which partially offset the impact of Aubagio generic competition and lower sales from mature products in the General Medicines segment.
In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.51 to $2.63. During the same period, the earnings estimates for 2024 have risen from $2.95 to $3.12. Shares of NVO have surged 44.2% in the year-to-date period.
Novo Nordisk’s earnings beat estimates in two of the last four quarters while meeting the mark on one occasion and missing the estimates on another. On average, the company witnessed an earnings surprise of 0.58%. In the last reported quarter, Novo Nordisk’s earnings beat estimates by 5.80%.
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Sanofi (SNY) Posts Upbeat Long-Term Outlook, Enhances R&D Focus
At its R&D event held on Dec 6, Sanofi (SNY - Free Report) forwarded ambitious plans to accelerate its future growth. It also stated the intent to establish itself as a powerhouse in the immunology area.
Sales Outlook
Sanofi expects to generate annual sales of over €10 billion by 2030, driven by recently launched products like Altuviiio (for hemophilia A), Sarclisa (for multiple myeloma) and Tzield (for diabetes) and future pharmaceutical products, which are currently under late-stage development.
Management also reiterated its expectation to generate more than €10 billion in annual vaccine sales by 2030. The annual vaccine sales also include the recently-approved RSV antibody Beyfortus, which Sanofi markets in collaboration with AstraZeneca (AZN - Free Report) .
Over the next few years, Sanofi expects to record low double-digit annual sales growth from blockbuster anti-inflammatory drug Dupixent. The upside is expected to be driven by a potential approval in the chronic obstructive pulmonary disease (COPD) space, which represents an immense opportunity for the company.
Dupixent is a key driver of Sanofi’s topline. The drug is marketed by the company in partnership with Regeneron (REGN - Free Report) . Per the terms of the partnership, sales of Dupixent are recorded by Sanofi, while Regeneron records its share of profits/losses in connection with the global sales of the drug.
Year to date, Sanofi’s stock has declined 5.1% compared with an increase of 5.0% of the industry.
Image Source: Zacks Investment Research
Pipeline Development
The France-based pharma giant also claimed to have 12 drugs under clinical development, which have blockbuster potential and are capable of reaching peak sales in the range of €2.0-€5.0 billion.
Out of these 12 candidates, management claims three candidates, namely amlitelimab (for eczema), frexalimab (for multiple sclerosis) and SAR441566 (for rheumatoid arthritis), as "pipeline-in-a-product" assets which have the potential to generate more than €5 billion in peak sales. Per Sanofi, the "pipeline-in-a-product" assets are multi-indication assets that have the potential to treat several conditions and currently have low market penetration.
To achieve these targets, Sanofi announced that in the future, it will increase its R&D investments to strengthen its position in immunology treatments. The raised R&D spending are likely to lead to a 50% increase in late-stage studies in 2024 and 2025.
Through this increased R&D investment, management expects 25 data readouts for assets that are in mid- to late-stage development and up to 19 regulatory submissions for its pharma assets over the next two years.
Our Take
The above announcements come just a little over a month after Sanofi gave a disappointing preliminary outlook for 2024 and 2025. At its third-quarter earnings conference call, management scrapped its previously issued 32% adjusted operating margin target for 2025 to account for increased R&D spending and a higher tax rate. Hence, investors have been seeking clarity from the management on the company’s long-term financial outlook.
In its third-quarter 2023 earnings results, Sanofi’s top line was driven by higher Dupixent sales and contribution from AstraZeneca-partnered Beyfortus and Altuviiio, which partially offset the impact of Aubagio generic competition and lower sales from mature products in the General Medicines segment.
Sanofi Price
Sanofi price | Sanofi Quote
Zacks Rank & A Key Pick
Sanofi currently has a Zacks Rank #3 (Hold). A better-ranked stock in the overall healthcare sector is Novo Nordisk (NVO - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Novo Nordisk’s 2023 earnings per share have increased from $2.51 to $2.63. During the same period, the earnings estimates for 2024 have risen from $2.95 to $3.12. Shares of NVO have surged 44.2% in the year-to-date period.
Novo Nordisk’s earnings beat estimates in two of the last four quarters while meeting the mark on one occasion and missing the estimates on another. On average, the company witnessed an earnings surprise of 0.58%. In the last reported quarter, Novo Nordisk’s earnings beat estimates by 5.80%.