France-based Sanofi SA (ADR) (NYSE:SNY) has a solid footprint in various therapeutic areas including cardiovascular diseases, diabetes, oncology, and nervous system disorders. The company’s revenue in the first quarter increased and came in at €8.65 billion, better than the Street’s expectation of €7.78 billion. Revenue in the period was mainly driven by 2% increase in Pharma sales, while Vaccines were also 9% ahead of the consensus. Sanofi SA (ADR) (NYSE:SNY) earned €1.42 per share in the first quarter, better than the forecast of €1.26. However, the management didn’t look like they were very optimistic about the future of the diabetes division. The company warned investors that its diabetes business in the US will decline in 2017 amid impact of formulary exclusions for key drugs like the insulin Lantus (glargine).
Multiple Sclerosis franchise revenue in the first quarter came in at €496 million, approximately in line with consensus. Sanofi SA (ADR) (NYSE:SNY) eczema drug Dupixent, which is manufactured and marketed in collaboration with Regeneron, is gaining popularity. Sanofi SA (ADR) (NYSE:SNY) said in its earning call that about 2,500 prescriptions had been written by 1,200 physicians in Dupixent’s first month on the market. According to Health care tracker IMS, about 200 prescriptions of Dupixent were filled in the fourth week after the drug’s launch, compared to just 52-60 prescriptions of psoriasis drugs made by Novartis and Eli Lilly. Sanofi SA (ADR) (NYSE:SNY) also expects to get an approval for Dupixent in the EU zone very soon.
Last month, several rumors suggested that Sanofi SA (ADR) (NYSE:SNY) was a buyout target of Sarepta Therapeutics (NASDAQ: SRPT). But Sanofi denied to comment on these rumors in a statement.
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Sanofi SA (ADR) (NYSE:SNY) reiterated fiscal 2017 guidance, and said that it expects a forex tailwind of 3% to 4% in the year.
Last month, JPMorgan upgraded Sanofi SA (NYSE:SNY) to “Neutral” from “Underperform”. The stock has gained about 21% in value over the past 6 months.
Sanofi SA (ADR) (NYSE:SNY) important pipeline drug, Kevzara, which was approved in Canada in February, is expected to get regulatory approval by the FDA in 2018. Soliqua, a once-daily titratable was launched earlier this year in the US. Soliqua is expected to be launched in Europe later this year.
Sanofi SA (ADR) (NYSE:SNY) plans to deliver costs savings of about €1.5 billion by 2018. Last year, the company generated €650 million in savings.