Sanofi shares are in the green Wednesday, after the French pharmaceuticals business reported better-than-expected third-quarter earnings, supported by growth of its higher value drugs. The firm also raised its full-year profit outlook, after delivering on its Q3 promise of returning to growth.
By 1245 BST, Sanofi shares were 5.68% higher at €79.86. The stock has been mixed in recent weeks trading.
Sanofi Q3 earnings
Sanofi reported its third-quarter earnings update earlier Wednesday, said net sales rose 3.7% to €9.39 billion in the third quarter, up from €9.06 billion a year earlier. Earnings per shares, meanwhile, climbed 11.2% to hit €1.84, the drug maker said.
Those figures were boosted by a 28.6% increase in sales of its Genzyme, specialty care division, which produces and sells vaccines and drugs for rare diseases.
“In the third quarter, Sanofi entered a new growth phase,” said Sanofi’s CEO, Olivier Brandicourt. “We delivered strong results with double-digit growth in Specialty Care and Emerging Markets, while Vaccines contributed a high-single digit increase in sales.”
The French firm’s CEO added that imminent drugs launches are expected to help support a strong outlook for the business.
“We are looking forward to expanding our Specialty Care business with the launches of Libtayo®, Cablivi® and Dupixent® for asthma. Based on the underlying dynamics demonstrated in the quarter, Sanofi is now well positioned to deliver growth,” Brandicourt said.
Improvement follows weaker diabetes drug performance
The impressive third quarter performance from Sanofi follows the firms’ decision to expand its higher-value drugs offerings. That was done, in part, through the purchases of smaller, specialist drug makers Ablynx and Bioverativ.
And, the new growth phase mentioned by Brandicourt means the French pharma firm has also raised its guidance. It now expects full-year EPS of between 4-5%, up from the 3-5% target range, it held previously.