Sanofi reported better-than-expected first-quarter results on Thursday, driven by strong demand for its asthma and eczema treatment Dupixent. However, analysts are now looking to incoming CEO Belén Garijo to drive growth beyond the company’s flagship drug.
Shares of the Paris-based company rose nearly 3% in morning trading. Garijo, a former Sanofi executive who later led Germany’s Merck, is set to take over as CEO by the end of the month.
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Sanofi’s results follow the unexpected removal of former CEO Paul Hudson in February, after he struggled to strengthen the company’s drug pipeline and faced a series of disappointing clinical trial updates for treatments expected to reduce dependence on Dupixent.
Incoming CEO Belén Garijo will need to reassure investors by identifying new growth drivers beyond Dupixent, which currently accounts for around one-third of the company’s revenue and is expected to face major patent expirations in the early 2030s.
“The arrival of Belén will be an occasion … to revisit if we want to expand into potentially other therapeutic areas,” CFO François‑Xavier Roger said on a call with journalists. “It is true that last year we had a certain number of setbacks.”
DUPIXENT GROWTH OUTLOOK BRIGHTENS
Sanofi now projects that Dupixent could generate around $30 billion in annual sales by 2030, according to Roger, which is higher than its earlier estimate of about $25 billion for the same year. In comparison, analysts currently forecast Dupixent sales of approximately 23.77 billion euros, or around $27 billion, by 2030.
Roger noted that the use of biologic treatments such as Dupixent is still relatively low in its key markets, leaving significant room for further growth even as competing therapies enter the space. He added that Sanofi remains “very positive” about the long-term outlook for Dupixent.
First-quarter sales of the drug, developed in partnership with U.S.-based Regeneron (REGN.O), increased by around 31% at constant exchange rates to 4.17 billion euros (approximately $4.88 billion), surpassing analysts’ expectations of 3.89 billion euros.
“Although Dupixent beating is a positive, we note the market would have liked less reliance on Dupixent, and greater contribution from assets that provide more diversification and longer patent life,” Barclays analysts said in a note.
OVERALL SALES BEAT, VACCINES UNDER PRESSURE
Sanofi reaffirmed its full-year outlook, expecting high-single-digit percentage sales growth at constant currency rates, with business operating income projected to grow slightly faster.
For the quarter ended March 31, 2026, the company reported total sales of 10.51 billion euros (about $12.29 billion), compared with analysts’ average estimate of 10.22 billion euros, according to data from Vara Research.
Quarterly business operating income came in at 2.97 billion euros (approximately $3.47 billion), surpassing expectations of 2.85 billion euros.
The vaccines division recorded sales of 1.29 billion euros (around $1.51 billion), rising about 2% at constant exchange rates and broadly matching forecasts. Strong demand for combination polio and pertussis vaccines helped offset weaker sales of flu and RSV vaccines.
However, CFO Roger noted that vaccine sales would have declined by around 2% during the quarter without contributions from Dynavax’s vaccine business, which Sanofi acquired in December for $2.2 billion.
