Sanofi stock undercut its 50-day line Thursday despite Dupixent outperformance as its earnings lagged Wall Street's expectations.
Dupixent is Sanofi's biggest moneymaker. It was developed in collaboration with Regeneron Pharmaceuticals as a treatment for allergic conditions like eczema and asthma. Over the three months ended Dec. 31, Dupixent sales soared 24.5% on a strict, as-reported basis to about $3.29 billion. That beat expectations for $3.23 billion, according to FactSet.
The companies are now working to expand Dupixent to patients with chronic obstructive pulmonary disease, or COPD. This is expected to be the next big growth driver for Dupixent.
"Fourth-quarter sales continue to reflect Dupixent's growth and COPD launch (expected in the second half of 2024), from which we see a roughly $4 billion revenue opportunity, should fuel Dupixent's out-year growth and accelerate Sanofi development cost repayment (to Regeneron)," RBC Capital Markets analyst Brian Abrahams said in a report.
O today's stock market, Sanofi stock sank 3% to 48.41. Shares fell below their 50-day moving average following the earnings announcement, according to MarketSmith.com. Regeneron stock, on the other hand, rose a fraction to 949.62.
Sanofi Stock: Sales Rise, But Come Out Mixed
Overall, fourth-quarter sales inched up 1.8%, on a reported basis, to about $11.86 billion. Excluding the impact of exchange rates, sales jumped 9.3%. That lagged expectations for $12.63 billion, according to FactSet. But Leerink Partners analyst David Risinger says total sales beat other estimates by 2%.
Adjusted earnings, however, missed forecasts by 4 cents. Earnings also declined year over year to 90 cents a share. Risinger says earnings lagged other forecasts by 3% to 4%. In constant currency, earnings climbed 8.2%.
Risinger kept his outperform rating on Sanofi stock.
For the year, Sanofi said it expects earnings to be roughly stable, but take a 3.5%-4.5% hit due to exchange rates. The Street forecast adjusted earnings of $4.28 a share and $51.2 billion in sales.
Sanofi also announced that Francois-Xavier Roger will succeed Jean-Baptiste Chasseloup de Chatillon as chief financial officer, effective April 1. Chatillon is stepping down to take on a role at a nonprofit.
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