Sanofi SA (SNY) lifted its full-year earnings guidance Monday after solid second quarter earnings thanks in part to its growing consumer healthcare division.
Sanofi reported second quarter earnings per share of €1.35, firmly ahead of the FactSet consensus of €1.31 and up 3.1% from the same period last year. Revenue for the three months ending in June was marked at €8.663 ($10.15 billion), a 6.4% increase from the second quarter in 2016. Sanofi now expects full-year earnings to be "broadly stable" from last year with a currency tailwind of around 1%.
"Sanofi Genzyme, Sanofi Pasteur and Emerging Markets were once again major contributors to our performance in the quarter. The continued growth of these businesses, together with disciplined expense management, enabled us to more than offset the headwinds in our Diabetes franchise," said CEO Olivier Brandicourt. "We are also encouraged by the strong uptake of Dupixent in the U.S. and the approval of Kevzara. The initiation of Phase 3 studies in additional indications for dupilumab, the Phase 2/3 programs with the anti PD-1 in multiple cancer indications and fitusiran in hemophilia were significant R&D milestones in the second quarter."
Sanofi said sales at its diabetes franchise fell 15% to just over €1.38 billion, taking the first half tally to €2.8 billion and down 11.4% from the same period last year.
Earlier this month, Sanofi added to its U.S. vaccines business with the $650 million acquisition of a privately-held influenza drug maker, Protein Sciences Corp., marking its second deal since failing to acquire Actelion Ltd. and Medivation Inc. last year.
Vaccine sales in the second quarter grew 26.2% to just over €1 billion, Sanofi said, while consumer healthcare revenue surged 42.5% to €1.163 billion.
Sanofi shares were marked 1.9% higher in the opening 90 minutes of trading in Paris and changing hands at €83.07 each, extending their year-to-date gain to just under 8%.
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