Shares of Sanofi surged on Friday after the French pharma giant raised its 2022 earnings outlook following a bullish quarter for its eczema drug Dupixent.
The company now expects adjusted earnings to rise 16% this year. three months ago, Sanofi (SNY) forecast full-year earnings growth of 15%.
Dupixent helped drive growth in the quarter. Sales surged nearly 45%, beating expectations.Sanofi and Regeneron Pharmaceuticals Medications on (REGN) to treat eczema, asthma and nasal conditions.
“As Sanofi noted in its press release, this advantage was primarily due to increased demand and growth in existing and newly approved indications, which added a significant number of eligible Dupixent patients,” RBC Capital Market analyst Brian Abrahams said in a note. Report.
In early stock market trading today, Sanofi shares rose 3% to close at around 42.81.
Sanofi stock: big impairment charge
Overall, third-quarter sales rose nearly 20 percent to 12.48 billion euros. But adjusted earnings fell nearly 10 percent to 1.66 euros per share. Based on today’s exchange rates, sales were $12.42 billion and earnings per share were $1.65. Both are higher than FactSet estimates.
Sanofi stock was less bullish, with the company taking a $1.58 billion fee after canceling a study of a cancer drug called SAR444245. The drug targets a cytokine called interleukin 2. But recent efforts to target interleukin 2 have been fraught with safety concerns.
Sanofi now plans to begin a Phase 1 and 2 study to determine the optimal dosing regimen for the drug. It will close an ongoing mid-stage study testing doses every three weeks.
Follow Allison Gatlin on Twitter @IBD_AGatlin.
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