Release Date: July 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sanofi SA (SNY, Financial) delivered double-digit sales growth at constant exchange rates (CER) in Q2 2024.
- Dupixent reached a significant milestone with sales exceeding EUR 3 billion in a single quarter, driven by strong US performance and rapid expansion in key markets outside the US.
- The company upgraded its earnings per share guidance for 2024 based on robust growth seen in the first half of the year.
- Sanofi SA (SNY) continues to advance its pipeline of new medicines, with several regulatory approvals and submissions, including Dupixent for COPD in the EU.
- Sanofi SA (SNY) remains committed to innovation, highlighted by a new partnership with Novavax to create a best-in-class combination vaccine for COVID-19 and flu.
Negative Points
- Gross margin was slightly down due to unfavorable currency impact and lower COVID-19 revenue compared to last year.
- Total operating expenses increased by 5.2%, driven by investments in marketing, sales, and R&D.
- The tax rate increased to 21%, partially offsetting higher business operating income.
- Flu vaccine sales are expected to decline by low single digits due to softer vaccination rates.
- There are uncertainties around the approval and capacity expansion for Beyfortus, which could impact sales phasing between Q3 and Q4.
Q & A Highlights
Q: Could you confirm current guidance for Beyfortus and clarify the scale of the expanded capacity?
A: We are confident Beyfortus will be a blockbuster in 2024. We are on track with our plan to increase supply, having done production at Phase and submitted regulatory applications for the new filling lines. We expect Q4 sales to be higher than Q3 due to the seasonal nature of RSV and the demand from in-season born babies. (Thomas Triomphe, Executive Vice President-Vaccines)
Q: Can you update us on the timelines for the COVID-19 and flu vaccine combination with Novavax?
A: We aim to start clinical operations this year. Our approach ensures no compromise on safety or efficacy. We are moving to the next generation of mRNA flu vaccines to improve the standard of care. (Thomas Triomphe, Executive Vice President-Vaccines)
Q: What are your expectations for the COPD launch of Dupixent?
A: We are excited about the COPD launch, having just received approval in Europe. We expect most of the growth to hit in 2025, with the launch beginning this year. (Brian Foard, Executive Vice President & Head-Specialty Care)
Q: Can you provide insights on the demand for Beyfortus outside the US?
A: Last year, we focused on the US, Spain, and France. This year, we expect to launch in additional countries like Italy, Germany, Ireland, and Portugal. (Thomas Triomphe, Executive Vice President-Vaccines)
Q: What is the potential of Fitusiran in the hemophilia space?
A: Fitusiran is applicable to all hemophilia patients and will likely be used broadly, especially in hemophilia B with inhibitors. It offers a highly differentiated profile with low volume treatment and no cold chain requirement. (Houman Ashrafian, Executive Vice President, Head of Research and Development)
Q: Can you update us on the timing and expectations for tolebrutinib?
A: We remain optimistic about the path for tolebrutinib, with results expected in late August or early September. The drug's ability to cross the blood-brain barrier is a key differentiator. (Houman Ashrafian, Executive Vice President, Head of Research and Development)
Q: How is Dupixent performing in its approved indications?
A: Dupixent is seeing strong demand and expansion across all approved indications and geographies. We are on track to achieve around EUR13 billion in sales this year. (Brian Foard, Executive Vice President & Head-Specialty Care)
Q: What are the most important Phase 2 projects in your portfolio?
A: Key Phase 2 projects include rilzabrutinib for AIHA, TL1A for immunology, and the oral small molecule TNF-R1 signaling inhibitor. We also have significant milestones in our vaccine and rare disease franchises. (Houman Ashrafian, Executive Vice President, Head of Research and Development)
Q: Can you comment on the potential sales of itepekimab in COPD relative to Dupixent?
A: We expect itepekimab to complement Dupixent in COPD, targeting non-type 2 inflammation. Together, these assets have a peak sales potential of around EUR5 billion. (Brian Foard, Executive Vice President & Head-Specialty Care)
Q: What is the outlook for Beyfortus in China?
A: Beyfortus will likely be a private out-of-pocket market in China, with a progressive ramp-up. We are currently building disease awareness and engaging with medical professionals. (Thomas Triomphe, Executive Vice President-Vaccines)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
