Sanofi Profit Beats Estimates With New CEO Hudson at Helm

(Bloomberg) -- Sanofi’s key growth driver, a drug for eczema and asthma, helped the French pharma giant report earnings that beat analysts’ estimates in Paul Hudson’s first quarter as chief executive officer.

• Earnings excluding some items climbed 4.3% to 1.92 euros a share in the quarter. Analysts predicted earnings of 1.72 euros a share. The company reiterated its forecast of 5% growth for the year.

Key Insights

• Sanofi’s new chief, who took the reins last month, will face questions on the future of the company’s consumer-health and diabetes units, R&D priorities and M&A plans.
• An experimental cancer combination was stopped in the quarter for efficacy reasons, along with an early-stage treatment for obesity and diabetes, Sanofi said. Hudson is expected to accelerate efforts to revamp the pipeline in the coming months.
• The hemophilia medicine Eloctate will be in focus after disappointing results pushed the drugmaker in July to curtail sales projections and announce a 1.8 billion-euro ($2 billion) charge.

Market Performance

• The stock rose as much as 1.7% in early Paris trading. The shares have gained about 12% so far this year, compared with a 20% gain in the Bloomberg Europe 500 Pharmaceuticals Index.

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To contact the reporter on this story: James Paton in London at jpaton4@bloomberg.net

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Marthe Fourcade, Frank Connelly

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