Sanofi raises sales outlook on Dupixent strength in boost for new CEO

Sanofi SASY.PA raised its full-year sales forecast on Thursday, on the back of strong demand for blockbuster asthma drug Dupixent and newer products, as investors focused on new CEO Belen Garijo's plans to revive drug development.

Garijo has taken the helm at a time when the drugmaker is under scrutiny to secure growth beyond its star drug Dupixent.

The company is looking for opportunities to grow through acquisitions, but its focus areas of immunology, rare diseases, and vaccines will not change, Garijo told journalists on a call.

Analysts expect Garijo to deliver an initial diagnosis of Sanofi's challenges and a plan to strengthen R&D returns after a series of trial setbacks last year.

In her first weeks, Garijo has overhauled her executive team, appointed a new R&D chief, and dropped plans to seek approval for an experimental eczema drug, amlitelimab, once seen as a possible Dupixent sucessor.

On Tuesday, the company said it had also decided to scrap development of two more experimental drugs, itepekimab, for a lung condition and balinatunfib, for psoriasis.

"The strategic review of our late-stage pipeline is still ongoing," Garijo said.

Sanofi now expects sales to grow by 10% at constant exchange rates in 2026, versus its previous forecast of high single digits. It continues to expect business operating income to grow slightly faster than sales.

Second-quarter business operating income was €3.29 billion ($3.77 billion) compared with analyst average estimates of €2.96 billion provided by the company.

Quarterly revenue came in at €11.60 billion, versus estimates of €10.85 billion.

Sales of Dupixent, which it shares with Regeneron REGN.O, rose 38% to €5.15 billion, at constant exchange rates, exceeding estimates of €4.48 billion.