Sanofi stock ended flat Thursday — reversing earlier declines — despite lifting its profit guidance after blockbuster eczema drug Dupixent topped second-quarter forecasts.
Dupixent — which treats eczema, asthma and nasal polyps — generated about $2.1 billion in sales, Piper Sandler analyst Christopher Raymond said in a report to clients. That handily beat projections by $142 million. U.S. sales were also "nicely ahead," Raymond said.
Both Sanofi shares and broader pharmaceutical stocks initially fell on today's stock market. But Sanofi stock reversed and closed fat at 50.92.
Collectively, Investor's Business Daily's 37-company industry group of drug stocks skidded early on, but managed to close down just a fraction. Early in the day, Senate Democrats reached a deal on an effort to lower drug prices, cut carbon emissions and tackle the federal deficit.
Sanofi Stock: Double-Digit Growth
In the second quarter, Sanofi earned about $1.76 per share on $10.28 billion in total revenue — based on today's exchange rates. Both measures beat analysts' projections. Sanofi said earnings grew more than 25% while sales jumped almost 16% on a strict as-reported basis.
On a segment basis, Sanofi's specialty care unit posted the best growth, increasing almost 22%, driven by Regeneron Pharmaceuticals-partnered Dupixent and double-digit growth for rare disease drugs. The company also noted a rebound in its vaccines division as more people begin traveling internationally.
For the year, Sanofi now expects adjusted earnings to climb 15% in constant currency. Sanofi stock analysts predicted adjusted profit of $3.98 a share and $43.4 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
