Sanofi (SNY) boosted its 2018 profit forecast Wednesday after double-digit growth in rare disease drugs helped the French pharma giant top third-quarter expectations.
XOn the stock market today, Sanofi stock popped 3.5% to close at 44.72. Meanwhile, shares of fellow drugmaker GlaxoSmithKline (GSK), which also beat the Street's third-quarter views, dipped 1.4% to finish at 39.06.
Broadly, shares of pharmaceutical companies lifted a fraction, rising for the third straight day.
Genzyme Offers Strong Growth
Sanofi overcame a 12.1% dip in cardiovascular and diabetes sales to beat analyst views for the third quarter. Total sales came to 9.4 billion euros, or about $10.89 billion based on the average exchange rate for the quarter. On a constant-currency basis, sales rose 6.3%.
Analysts polled by Zacks Investment Research had called for sales of $10.88 billion.
Adjusted earnings of $1.07 per share beat analyst estimates for 98 cents. For the year, Sanofi now expects earnings to grow 4%-5% on a constant-currency basis.
The best growth in the quarter came from Sanofi's Genzyme unit, which makes treatments for rare diseases, multiple sclerosis, immunological disorders and cancer. Sales in that unit grew 36.1% in constant currency, driven by immunology and rare blood disorder treatments.
Vaccine sales also rose 8.2% on a constant-currency basis. Strong growth in that unit came from preventative drugs often administered to children and travel/endemic vaccines.
Regeneron-Partnered Drugs Mixed
Sales of Regeneron Pharmaceuticals (REGN)-partnered eczema drug Dupixent spiked 198.7% to about $261 million. That beat out predictions of $249 million, RBC Capital Markets analyst Kennen MacKay said in a report to clients.
Dupixent's growth is "a promising trend for what should be chronic treatment with continued compounding growth and suggestive that Sanofi and Regeneron have largely moved past the first quarter's one-time Dupixent reimbursement and prescribing headwinds," he said.
But sales of other Regeneron-partnered drugs lagged, Piper Jaffray analyst Christopher Raymond said. Praluent treats high LDL cholesterol and brought in about $79 million, missing by $4 million. Sales of rheumatoid arthritis drug Kevzara were about $26 million, short by $5 million.
Street expectations for Praluent were significantly lower than for rival drug Repatha, from Amgen (AMGN), RBC's MacKay said. Late Tuesday, Amgen posted $120 million in Repatha sales, but that lagged Wall Street views.
"Given lower Praluent expectations, we see Regeneron as slightly more protected from headwinds to the class due to price-for-volume concessions slowing or decreasing sales in the quarters/years ahead," he said.
GlaxoSmithKline Tops On Vaccine Sales
GlaxoSmithKline topped expectations in the quarter with 8.09 billion pounds in sales, or around $10.61 billion, based on the average exchange rate for the period. That narrowly beat the analyst average polled by Zacks for $10.55 billion. In constant currency, sales rose 6%.
Adjusted earnings came in at 93 cents a share, above expectations for 87 cents per share. For the year, Glaxo expects adjusted earnings to grow at the high end of its outlook for 8%-10% growth in constant currency, dependent on whether a generic of asthma inhaler Advair launches in the U.S.
Sales of vaccines were particularly strong, rising 17% in constant currency. Shingrix, which works to prevent shingles, brought in about $376.7 million, based on the exchange rate for the quarter.
Now, Glaxo expects 700 million to 750 million in pounds for Shingrix sales for the year, or about $893.8 million to $957.7 million, based on Wednesday's exchange rate.
Pharmaceutical and consumer health care sales overall rose 3% apiece in constant currency.
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The post Pharma Giants Raise 2018 Profit Guidance On Third-Quarter Vaccine Boost appeared first on Investor's Business Daily.
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