Sanofi earnings beat but sales lower in 3rd-qtr

French pharma major Sanofi (Euronext: SAN) saw its share price dip a fraction by mid-morning, after posting lower third-quarter 2019 sales, hit by a fall in revenue at its primary care business and a drop in its vaccines business.

Net sales for the quarter were 9,499 million euros ($10.56 billion), up 1.1% on a reported basis, down 1.1% at constant exchange rates (CER) and up 0.5% at CER/CS..Sanofi Genzyme sales increased 19.5% driven by continued strong uptake of Dupixent (dupilumab). Vaccines sales fell 9.8% reflecting anticipated weighting of US flu vaccines supply towards fourth quarter. CHC sales up 0.4%, impacted by Zantac (ranitidine) voluntary recall, non-core divestments and increased regulatory requirements. Primary Care sales declined 12.7% at CER/CS due to lower sales in Diabetes and Established Products.

Third-quarter 2019 business net income increased 4.3% to 2,399 million euros and 0.2% at CER, which was above expectations. Business earnings per share (EPS) were stable at CER at 1.92 euros. IFRS EPS was 1.49 euros, down 18.6% reflecting the capital gain on the European generics divestment in third-quarter 2018.