(Bloomberg) -- Sanofi forecast double-digit profit growth for 2022 as blockbuster therapy Dupixent extends its reach in the U.S. and Europe.
Earnings per share, excluding some items, are likely to grow by a low double-digit percentage at constant currencies, the Paris-based company said Friday. Fourth-quarter profit by that measure was 1.38 euros a share, beating the 1.33-euro average estimate.
The asthma and eczema drug Dupixent has been the motor behind Sanofi's efforts to focus on cutting-edge therapies while streamlining its once-sprawling offering of healthcare products. The French drugmaker is using its stockpile of cash to invest in vaccine technologies including messenger-RNA and to conduct a string of mid-sized deals in fields including oncology.
The company stands to benefit this year from, among other things, a lower tax rate and strong demand for Dupixent and vaccines, according to Sam Fazeli and John Murphy of Bloomberg Intelligence. “Management is being cautious and leaving room for upgrades,” the analysts said.
Sanofi shares rose about 1% in early Paris trading.
Dupixent remains the drugmaker's biggest growth driver, with 2021 sales rising 53% and reaching 5.2 billion euros ($6 billion). The potential is particularly high in China, after the drug was included on the country's national reimbursement list for atopic dermatitis in March. Investors are looking for signs that Dupixent could be used to treat new conditions, including a form of hives and an immune system disease called eosinophilic esophagitis.
While Sanofi remains a giant in the world of vaccines, it's playing catch up on the mRNA technology that's transformed the industry during the pandemic. That hurt the company in the fourth quarter, as demand for flu vaccines in the U.S. fell as pharmacies focused on administering Covid shots developed by rivals Moderna Inc. and Pfizer Inc.
That's one reason that Sanofi's fourth-quarter sales of 10 billion euros missed estimates.
Sanofi still expects to report the late-stage trial results for its Covid-19 vaccine, developed with GlaxoSmithKline Plc, later this quarter. The companies said in December the shot has promise as a booster.
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