Sanofi reported double-digit quarterly sales growth under CEO Belén Garijo, supported by Dupixent and newer medicines, while outlining plans to strengthen its pharmaceutical pipeline through partnerships and acquisitions.
French pharmaceutical company Sanofi has raised its full-year 2026 financial outlook after reporting double-digit sales and earnings growth in the third quarter, as Chief Executive Officer Belén Garijo advances a strategy focused on innovation, portfolio development and operational efficiency.
Sanofi reported quarterly sales of €14.44 billion, an increase of 14.3% at constant exchange rates. Business earnings per share rose 19.6% on the same basis to €3.55.
The performance was primarily supported by increased sales of Dupixent and recently launched medicines, although the company’s vaccines business recorded a decline.
Dupixent and New Medicines Drive Growth
Dupixent remained Sanofi’s largest growth contributor during the quarter, generating approximately €5.7 billion in sales, an increase of 34.8% at constant exchange rates.
The medicine, developed through Sanofi’s partnership with Regeneron, is used to treat several inflammatory conditions.
Sales from recently launched pharmaceutical products increased 31.4% to €1.4 billion, supported by medicines including ALTUVIIIO, Ayvakit and Rezurock.
However, vaccine sales declined 6.6% to €3.2 billion, which Sanofi attributed mainly to the expected timing of respiratory disease prevention sales.
The differing performance across business segments highlights the company’s continued reliance on its immunology portfolio while it works to broaden future revenue sources.
Garijo Upgrades Full-Year Financial Guidance
Following the quarterly results, Sanofi revised its 2026 outlook upwards.
The company now expects full-year sales to grow by a low-teens percentage at constant exchange rates, with business earnings per share forecast to increase by a mid-teens percentage.
Garijo attributed the earnings performance partly to cost management and continued commercial demand.
“Sanofi achieved another strong quarter with double-digit sales growth of 14.3%, mainly driven by our new medicines and Dupixent,” she said.
Business operating income reached €5.43 billion, increasing 19.7% at constant exchange rates.
Research and development expenditure remained broadly stable at €1.8 billion, while selling and general expenses declined 0.9% to €2.3 billion.
The results provide additional financial capacity for the company’s investment priorities, although future performance will depend on market demand, regulatory developments and the progress of new treatments.
Preparing for the Post-Dupixent Period
A central challenge for Garijo is preparing Sanofi for the eventual loss of patent protection and market exclusivity for Dupixent.
The medicine currently contributes a substantial share of the company’s pharmaceutical sales, making the development of additional revenue-generating treatments an important strategic priority.
Sanofi is concentrating its research and business development efforts on three principal areas: immunology, rare diseases and vaccines.
Garijo has emphasised improving research productivity, accelerating decision-making and strengthening the company’s portfolio through external partnerships and acquisitions.
Reuters reported that Sanofi is open to acquisitions larger than its usual $2 billion to $5 billion transaction range as it seeks to strengthen its development pipeline.
Such transactions could help diversify future revenue, although their success would depend on the clinical and commercial performance of acquired assets.
Partnerships Form Part of Strategic Transformation
During the third quarter, Sanofi expanded its longstanding collaboration with Regeneron to pursue additional opportunities in immunology.
The company also announced a partnership with Cheplapharm involving a portfolio of established medicines, as part of efforts to simplify its operations and focus resources on priority therapeutic areas.
The Cheplapharm transaction remains subject to applicable employee consultation procedures, regulatory approvals and customary closing conditions.
Sanofi also reported progress in its development pipeline, including two regulatory approvals, acceptance of one regulatory submission and two additional regulatory designations.
These milestones support the company’s development programme but do not guarantee future product approvals or commercial success.
Leadership Focus Shifts Towards Long-Term Growth
Sanofi’s third-quarter results provide an early indication of how Garijo is balancing current commercial performance with longer-term portfolio changes.
Strong demand for Dupixent and newer medicines has supported the company’s revised outlook, while its acquisition plans and research priorities reflect the need to prepare for future competition.
The immediate challenge will be sustaining profitability while building a broader pipeline capable of supporting growth beyond the company’s existing leading treatments.
For Garijo, the next phase of Sanofi’s transformation will be measured not only by quarterly earnings but also by the company’s ability to develop and commercialise medicines that can sustain its business over the coming decade.
Sources: Sanofi, Reuters
