Published by Global Banking and Finance Review
Posted on January 30, 2025
By Manas Mishra
-Sanofi said on Thursday it would buy back 5 billion euros ($5.21 billion) in shares this year and could be more active with acquisitions in the near term as the drugmaker moves towards selling a large stake in its consumer health unit.
The sale of Sanofi's controlling stake in consumer health business Opella is expected to close in the second quarter at the earliest, completing its transition into a pure-play drug and vaccine manufacturer.
"We have always been very active in the M&A (mergers and acquisitions) space. We may be a bit more in the near future due to the fact that we have a strong balance sheet," CFO François Roger said on a media call, but added that the company will still take a balanced approach to deals.
Sanofi, one of the world's largest makers of vaccines by sales, reported its quarterly earnings a day after Robert F. Kennedy Jr., President Donald Trump's pick to lead the top U.S. health agency, came under attack for his views on vaccines at a Senate confirmation hearing. Kennedy is also scheduled to appear in front of a Senate panel that oversees health on Thursday.
Roger said the company would "work with regulators and lawmakers in the U.S. and around the world to make our medicine and vaccines accessible to patients," without specifically commenting on Kennedy's hearing.
Sanofi expects sales to grow by a mid-to-high single-digit percentage in 2025 when adjusted for currency swings. It expects a limited increase in its research and development spending in 2025 versus 2024 levels, Roger said.
R&D spending has increased as CEO Paul Hudson looks to boost clinical trials for next-generation drugs. His spending plans were initially met with a massive stock market slump in 2023, but the shares have rebounded since.
The company's quarterly business operating income, excluding one-off items, fell by 7.7% to 2.08 billion euros but met the average analyst estimate in a poll posted on the company's website.
Sales of Beyfortus, a new treatment to protect newborns from a common respiratory virus, doubled to 841 million euros in the fourth quarter, beating estimates of 648 million euros.
Sales of its blockbuster asthma drug Dupixent rose 16% to 3.46 billion euros but missed estimates of 3.61 billion euros. The company said sales growth had been hit by fewer business days in the quarter compared to prior periods.
($1 = 0.9604 euros)
(Reporting by Manas Mishra in Bengaluru; editing by Kim Coghill and Jason Neely)
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