By Ludwig Burger
(Reuters) -French drugmaker Sanofi on Friday increased its guidance for full-year earnings, citing strong sales of anti-inflammatory treatment Dupixent and closely-watched new drug launches.
The Paris-based drugmaker predicted an increase in 2023 adjusted earnings per share by a “mid single-digit” percentage, excluding the effect of currency swings. The negative currency impact on 2023 earnings would likely be between 6.5% and 7.5%.
It had previously said it expected 2023 adjusted earnings per share to grow by a “low single-digit” percentage, with an additional negative currency impact of between 5.5% and 6.5%.
It also credited expected sales growth from newly launched haemophilia A treatment Altuviiio, which allows for fewer injections per month than standard therapy, and a type 1 diabetes treatment acquired as part of the $2.9 billion takeover of Provention Bio.
Analysts have said the drug market debuts are important tests of the company’s marketing prowess and a chance for CEO Paul Hudson to regain investor confidence following disappointing trial results of a once-promising breast cancer drug candidate about a year ago.
The improved outlook also includes about 400 million euros ($439 million) of expected one-off COVID-19 vaccine revenues in the second half of the year, with no further sales to be expected thereafter.
Sanofi reported a 1% decline in quarterly business operating income, or adjusted earnings before interest and tax, of 2.73 billion euros, slightly ahead of an average analyst estimate of 2.62 billion euros posted on the company’s website.
That included the effect of a weaker U.S. dollar weighing on the euro value of overseas revenues.
Competition for established medicines such as multiple sclerosis pill Aubagio, blood thinner Lovenox and long-acting insulin product Lantus continued to drag on sales growth.
Revenue from eczema and asthma drug Dupixent, jointly developed with Regeneron, surged by a currency-adjusted 34% to 2.56 billion euros, in line with market expectations.
($1 = 0.9117 euros)
(Reporting by Ludwig Burger; Editing by Christopher Cushing and Sonali Paul)
