Sanofi SA Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Byline: The Sanofi SA Q3 2025 earnings call highlighted strong financial results driven by new launches and Dupixent, reiterating the full-year 2025 sales guidance. Key discussion points included business segment performance, capital allocation, industry trends, competitive landscape, US policy, growth strategies, and financial outlook, with emphasis on profitable growth and pipeline advancements.
Key Financial Results:
Q3 2025 sales reached €12.4 billion, up 7% over last year.
New launches contributed €1.8 billion, growing more than 40% and representing 15% of total sales.
Dupixent quarterly sales exceeded €4 billion for the first time.
Business EPS reached €2.91, a 13% increase compared to Q3 2024.
Business gross margin increased by 2.3 percentage points due to improved product mix and productivity gains.
Year-to-date sales growth of 9% and business EPS growth of 12%.
Business Segment Results:
Pharma was the primary driver of growth, specifically immunology and recent launches.
New launches demonstrated strong momentum with 41% sales growth, while Dupixent sales grew by 26%.
Vaccine sales were down, primarily due to flu, resulting from competitive price pressure and lower vaccination rates.
Dupixent sales in the US surpassed €3 billion quarterly sales.
Dupixent sales outside the US grew 21%, exceeding €1 billion in the quarter.
Vaccine business Q3 sales were €3.4 billion.
Beyfortus continues its expansion, up 20% this quarter, and now available in 40 countries.
Capital Allocation:
Executing capital allocation policy with discipline and balance across four priorities.
Priorities include investing in organic growth drivers, pursuing selective bolt-on acquisitions, maintaining a policy of progressive dividends, and executing opportunistic share buybacks.
Completed acquisitions of Dren Bio's DR-0201, Vigil Neuroscience, and Blueprint.
Industry Trends and Dynamics:
Competitive price pressure in the vaccine market, particularly in Germany.
Lower flu immunization rates in the US.
Growing biologics market with low bio-penetration rate.
Competitive Landscape:
Beyfortus is the preferred product by US prescribers due to its extended half-life.
ALTUVIIIO is the number one switched asset in the hemophilia A marketplace.
Dupixent is still holding strong profile despite other therapies coming to the marketplace.
Macroeconomic Environment:
Negative foreign exchange effects impacted published sales growth.
Working with policymakers in the US and around the world on policies that improve access to treatments, lower prices for patients, and improve health systems and protect science.
Growth Opportunities and Strategies:
Focus on new launches, which are a significant driver of growth.
Expanding access to Dupixent in new indications and geographies.
Advancing flu pandemic preparedness with two programs and improving vaccination convenience with flu-COVID combination vaccines.
Global Health Unit has reached 1 million patients treated for non-communicable diseases across more than 40 low- and middle-income countries since 2021.
Expanding the Insulins Valyou Savings Program in the US to ensure every American has access to Sanofi's insulins at just $35 per month.
Focus on increasing vaccination coverage rate for RSV solutions.
Financial Guidance and Outlook:
Reiterated full-year 2025 guidance of high single-digit sales growth and low double-digit business EPS growth at constant exchange rates.
R&D expenses for next year are expected to increase moderately.
Continued investment in sales and marketing to support product launches and sales momentum.
Objective to keep G&A costs broadly stable.
Expect to achieve around €0.5 billion of capital gains from divestments, similar to 2025.
Implied royalties for Amvuttra are expected around €700 million for next year.
Reduction of approximately €300 million reimbursement from Regeneron for R&D balance in 2026.
Confident in the ability to sustain profitable growth momentum for the next few years.
