Investing.com - Sanofi (EPA:SASY) (NASDAQ:SNY) stock rose Thursday after the French drugmaker lifted its full-year profit forecast after strong second-quarter results, based on strong demand for blockbuster skin and asthma medicine Dupixent.
At 06:05 ET (10:05 GMT), Sanofi shares rose 2.5% to €96, up nearly 7% year-to-date.
Sanofi posted second-quarter operating income hit €2.81 billion (€1 = $1.0854), easily exceeding expectations, thanks largely to the success of Dupixent, which saw sales surge 29.2%, outperforming projections.
The drug, co-developed with Regeneron (NASDAQ:REGN), treats asthma and eczema and remains a critical growth driver.
The company’s recent product launches, including Altuviiio, Beyfortus, and Tzield, have also shown strong initial sales, hinting at a promising diversification of its portfolio.
Additionally, earnings per share will probably be stable this year at constant currencies, Sanofi said Thursday, an improvement from the previous guidance for a low single-digit percentage drop.
“The strong top-line drives 4% beats at EBIT and EPS, as gross margin and OpEx [are] broadly in-line,” analysts at Jefferies said, in a note.
The “2024 outlook [was] raised as we flagged, which should be well-received, suggesting modest 1%-2% potential cons[ensus] upgrades, in our view.”
Sanofi also announced plans to separate its consumer health unit in the fourth quarter of this year at the earliest.
“The decision by 4Q, at the earliest, should crystallise value, in our view, given its higher multiple peers vs Pharma,” Jefferies said.
Jefferies maintained a ‘buy’ rating, with a €120 price target.
“We envisage continued cons[ensus] upgrades, driven by key growth driver Dupixent, plus new launch Beyfortus, together with a less pessimistic stance than cons[ensus] on the 2025 margin rebound. Immunology pipeline depth is also underappreciated, in our view,” Jefferies added.