Sanofi surprised investors by raising its 2025 revenue forecast, driven by strong Q2 sales growth of 6% to nearly €10 billion, yet its stock fell over 4% amid profit concerns. The blockbuster drug Dupixent, approved for COPD treatment, saw a 20% surge to €3.8 billion, while newer medications like ALTUVIIIO soared by 40% to €900 million. However, adjusted earnings per share of €1.59 missed analyst estimates of €1.67, and operating profit dipped 2% to €2.5 billion due to higher R&D costs. A one-time €2.71 billion gain from selling its consumer health division boosted net profit to €4 billion, but investors remained wary of missed targets.
Pipeline Progress and Strategic Shifts
CEO Paul Hudson now targets the upper end of Sanofi’s revenue growth range for 2025, projecting high single-digit gains despite acquisition expenses. The company nears completion of a €5 billion share buyback program and continues expanding its pipeline through recent deals. However, mixed trial results for COPD drug Itepekimab cast uncertainty, with one study meeting its goal and another falling short. Analysts expect downward earnings revisions, reflecting the disconnect between robust sales and profit pressures.
