Sanofi SA Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Sanofi SA's Q2 2025 earnings call highlighted strong financial performance driven by new launches, vaccines, and Dupixent, leading to refined full-year guidance and strategic capital redeployment through acquisitions and share buybacks. The call also addressed R&D progress, pipeline advancements, and key market dynamics.
Key Financial Results
Net sales increased by 10.1% at constant exchange rates.
Gross margin improved by 1.5 percentage points, led by an improved product mix and efficiencies.
Business EPS was €1.59, up 8.3%.
Business EPS in the first six months of the year is up 12%.
Dupixent sales reached €3.8 billion, up 21% in Q2.
New launches generated close to €1 billion in sales in Q2.
Business Segment Results
Immunology, pharma launches, and Beyfortus primarily drove sales growth.
Vaccine business sales increased by 10.3%, driven by Beyfortus expansion and a late flu season.
Dupixent sales in the US reached €2.8 billion, up 22.7%.
Dupixent sales outside the US exceeded €1 billion.
AYVAKIT sales reached $175 million in Q2 (not included in Sanofi's Q2 financials).
Capital Allocation
Received around €11 billion from the sale of a controlling stake in Opella.
Announced acquisitions of Dren Bio's DR-0201, Vigil Neuroscience, Blueprint Medicines, and Vicebio.
Executing a €5 billion share buyback program in 2025, with over 80% already completed.
Retaining further capacity for business development on M&A while remaining committed to an AA credit rating.
Industry Trends and Dynamics
Biologic penetration remains low across all indications for Dupixent.
Competitive forces, particularly in the US and Germany, are expected to decrease flu sales by a mid-teens percentage.
The market is evolving towards more differentiated flu vaccines and flu COVID-19 combinations.
Increasing competition in the RSV field.
Competitive Landscape
Sanofi expects to maintain its flu market share despite declining market value.
Beyfortus will remain the dominant player in RSV prevention due to its half-life and real-world experience.
AYVAKIT's competitiveness is strong, especially in light of recent data from Cogent's bezuclastinib.
Macroeconomic Environment
Forex impact is estimated to be around minus 4% on sales and around minus 6% on EPS.
Navigating a dynamic world with uncertainties from potential US tariffs on EU exports.
Growth Opportunities and Strategies
Strategic focus on innovation continues to drive top-line performance.
Expanding the presence of Beyfortus in Southern Hemisphere countries.
Deepening biologic penetration and expanding indications to support the ambition of reaching Dupixent sales of approximately €22 billion in 2030.
Developing vaccines that can protect against multiple respiratory pathogens through the acquisition of Vicebio.
Strengthening position in rare immunology diseases with the acquisition of Blueprint Medicines.
Eco-design approach to reduce the environmental footprint of medicines and vaccines.
Exploring a more convenient treatment approach in AD with as few as four injections a year with amlitelimab.
Financial Guidance and Outlook
Refined 2025 sales guidance to high single-digit percentage growth at constant exchange rates.
Confirmed EPS guidance of low double-digit percentage growth at constant exchange rates.
Modest growth anticipated for Beyfortus in 2025, with Q4 sales likely similar to Q3.
Total flu sales are expected to decrease by a mid-teens percentage versus last year.
Operating expenses may increase slightly due to previously announced acquisitions.
Profit-sharing payments to Regeneron are increasing in direct correlation with Dupixent profit growth.
The development balance with Regeneron is anticipated to be fully reimbursed by the end of 2026.
Expected royalty revenue from Amvuttra will significantly contribute to the financial outlook until the end of the decade.
Sales split for flu vaccine is anticipated to be about 75% in Q3 and 25% in Q4.
Expects to get probably €0.5 billion, potentially more, from disposal - in terms of capital gains from the disposal.
