Sanofi forecasts slower profit growth amid generic competition

SANOFI forecast a slowdown in profit growth this year as generic competition ratchets up for multiple sclerosis drug Aubagio.

Earnings per share, excluding some items, are likely to grow at a low single-digit percentage at constant currencies, the Paris-based company said on Friday (Feb 3). The increase was 26 per cent last year.

Sanofi is facing challenges to its growth as its ageing medicine Aubagio will face cheaper competition in the US this spring. While Dupixent, a treatment for asthma and skin ailments, continues to drive Sanofi’s growth, the French drugmaker will need to increase spending on marketing this year as it launches new products including Beyfortus for preventing respiratory syncytial virus in kids and Altuviiio for hemophilia.

The drugmaker forecast that Dupixent sales could top 10 billion euros (S$14.3 billion) this year after its revenue soared 44 per cent in 2022.

Investors are also looking for signs that Sanofi is ready to engage in large acquisitions following its unsuccessful approach last year for Horizon Therapeutics, which was later bought by Amgen.

Adjusted earnings were 1.71 euros per share in the fourth quarter. Analysts expected 1.72 euros. BLOOMBERG