Sanofi on Friday reported a sharp decline in quarterly vaccine sales, a development the French company partially tied to lower immunization rates in the U.S.
In its latest earnings report, Sanofi said that its overall vaccine sales fell by 7.8% to €3.4 billion, or $3.9 billion, between July and September. The pullback was largely driven by a slowdown in influenza shots, which, combined with the revenue Sanofi derives from Novavax’s COVID-19 vaccine Nuvaxovid, decreased by 16.8%, to €1.5 billion. Sanofi’s COVID-19 and influenza vaccine sales are down a total of 14% this year, the company said.
In prepared remarks and on an earnings call with analysts, Sanofi executives claimed the lower numbers were “expected.” CEO Paul Hudson cited “price competition” in Germany and a slowdown in the U.S.
“It's early. We're still in October. But I think it's fair that with the first few weeks that we observed a little bit of vaccination rate on the soft side when it comes to flu vaccination, particularly in the U.S.,” Thomas Triomphe, Sanofi’s head of vaccines R&D, told analysts.
Vaccines have faced heightened commercial pressure in the U.S. since the confirmation of Health and Human Services Secretary Robert F. Kennedy, Jr. Kennedy overhauled a key committee guiding U.S. vaccine policy, replacing them with a handpicked group more aligned with his skeptical views on immunizations. The Food and Drug Administration has also set in place a stricter framework for COVID-19 shots, leading to narrower clearances than in years past.
Over that time, vaccination rates for routine childhood immunizations have declined, even as a measles outbreak has taken hold. Rates of flu shots have also been in a prolonged downswing in the U.S., according to a report earlier this year from the nonprofit group PLOS Global Health.
Sanofi, one of the world’s preeminent vaccine makers, continues to invest in the space, however. The company, for instance, has multiple combination shots for influenza and other viruses in development.
“Sanofi has a proud legacy of flu vaccines, and we remain committed on bringing innovation to strengthen our leadership in flu and to provide better protection for patients,” Hudson said Friday.
Despite the slowdown in vaccine sales, Sanofi’s overall revenue rose by 2.3%, boosted in part by revenue for its blockbuster anti-inflammatory drug Dupixent. Sales of Dupixent surged by 26.2% to €4.2 billion, a quarterly record that beat consensus estimates, wrote Leerink Partners analyst David Risinger.
Sanofi’s Beyfortus, a preventive drug for respiratory syncytial virus in infants, also bested Wall Street projections. Sales jumped 14.6% to €739 million, or about $860 million, between April and June. Newer drug launches — which include the hemophilia medication Altuviiio and Ayvakit, a rare disease therapy acquired in Sanofi’s buyout of Blueprint Medicines — climbed 57.1%, reaching €1 billion for the quarter.
