Sanofi: the group raises its profit forecast for 2020

  •   30/07/2020 - 14h41
  •   DEHOUI Lionel

The Sanofi group is being seen in a special way this Wednesday. Indeed, it hinted today that it would revise upwards its earnings per share (EPS) forecast. An announcement that comes just after Sanofi achieved an increase. The group did not fail to specify the two factors responsible for this progression. For him, it has had such a development thanks to the cost savings made. It is also thanks to the capital gain from the sale of almost all of his stake in the American Regeneron group. Sanofi now anticipates business EPS growth in the range of 6% to 7% (at constant exchange rates) compared to an increase of around 5% initially.

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Sanofi: the group raises its profit forecast for 2020
Image copyright: Lionel Allorge

Growth followed by declines

1.28 (at constant exchange rates), a 4.8% improvement in business EPS in the second quarter. 1.28 (at constant exchange rates). According to figures reported by Sanofi, there was growth of 9.2% over the first half as a whole. However, the Group was impacted by the coronavirus pandemic. A situation that can be clearly seen in the biopharmaceuticals turnover.

8.2 billion (at constant exchange rates), down 3.4% for the second quarter. In detail, it should be noted that sales in the general practice division declined by 12.7%. Sales of the vaccines division were down 6.8%. Similarly, the consumer healthcare business was down 8% in terms of revenue. But all is not gloomy at Sanofi.

 

An increase despite the pandemic

The Sanofi group, on the other hand, experienced an increase of 17.4% in the second quarter on its sales of the " médecine division of spécialités ". This figure is explained in particular by the success of Dupixent, its treatment for atopic dermatitis. Sales of Dupixent have jumped by 70%. This is well understood through the commentary of CEO Paul Hudson in a press release.

Indeed, he feels that his team has succeeded in generating an increase in business EPS despite the adverse consequences of the coronavirus pandemic. He reported that this increase is the consequence of the "strong performance of  ", the commitment of its employees and its cost saving initiatives. According to the group, it achieved a total of 990 million euros in savings during the first half of the year.

Note: It is quite important to mention the stock market situation of the Sanofi group this Wednesday. Indeed, the Sanofi share was up 0.44% to 89.9 euros at the end of the morning. The group is also on the list in the famous race for the coronavirus vaccine. It is currently working on two projects, the first of which uses an adjuvant designed by the British company GlaxoSmithKline. The second is an mRNA vaccine developed jointly with Translate Bio.