Sanofi raises its 2026 guidance again and looks at bigger acquisitions
The Paris-based drugmaker beat analyst forecasts for the quarter and raised its full-year targets for the second time this year. Its finance chief said Sanofi is open to deals larger than its usual size as it prepares for life after Dupixent.
Sanofi reported third-quarter 2026 results on Friday 30 October. Net sales rose 14.3% at constant exchange rates to €14,444 million, and business earnings per share rose 19.6% at constant exchange rates to €3.55.
The company raised its 2026 guidance. It now expects sales to grow by a low-teens percentage and business earnings per share by a mid-teens percentage, both at constant exchange rates. Agefi-Dow Jones reported that this is the second upgrade this year, after Sanofi raised its targets in July.
The quarter
According to Sanofi's release, Dupixent, its treatment for asthma, eczema and other inflammatory diseases, grew 34.8% to €5.7 billion, above €5 billion per quarter for the second time. Sales of new pharma launches rose 31.4% to €1.4 billion, driven by haemophilia drug ALTUVIIIO, Ayvakit for systemic mastocytosis and Rezurock for chronic graft-versus-host disease.
Vaccines sales fell 6.6% to €3.2 billion, which the company said reflected the expected phasing of its respiratory prevention products. Research and development costs were broadly stable at €1.8 billion, and selling and general expenses fell 0.9% to €2.3 billion.
Business operating income rose 22.2% to €5,430 million, and business net income rose 20.0% to €4,255 million. Under IFRS, net income was €3,021 million, up 7.8%, and earnings per share were €2.52. Free cash flow was €3,269 million.
The numbers were well ahead of forecasts. Agefi-Dow Jones reported that analysts in a consensus compiled for the company had expected business earnings per share of €2.81 and sales of €13.25 billion. Reuters said business operating income of €5.43 billion compared with expectations of €4.32 billion.
Life after Dupixent
Belén Garijo, who became chief executive in May according to Reuters, said the company is now focused on managing its "post-Dupixent trajectory over the next decade". "Our priority is to protect earnings through Dupixent's loss of exclusivity," she said in the release. "Business development and M&A will be critical to complement this transformation."
Dupixent made up about 40% of Sanofi's quarterly sales, which shows how much the company depends on one medicine. In the quarter Sanofi expanded its long-standing alliance with Regeneron, which co-develops Dupixent, and agreed a partnership with Cheplapharm covering several older medicines. That partnership still needs consultation with employee representatives and regulatory approvals.
Bigger deals possible
Chief financial officer François Roger told reporters that Sanofi is considering acquisitions larger than its usual range of €2 billion to €5 billion, Reuters reported. He said the company is increasing its interest in late-stage assets, meaning drugs in phase 3 trials or already on the market, in rare diseases, vaccines and immunology. Some analysts estimate Sanofi's firepower for deals at around €20 billion, according to Reuters.
What it means for European founders and investors
Large drugmakers facing patent cliffs are the main buyers of biotech companies, and Sanofi has now said clearly that it wants to buy. For European biotech founders and investors, that is good news, but the focus on late-stage and marketed products means the biggest cheques will go to companies with phase 3 data or approved drugs.
Earlier-stage companies are more likely to see licensing and partnership deals than full takeovers. Startups that use AI to speed up drug discovery or clinical trials, such as ALLOX and Atlas Bio, address the R&D productivity problem that Garijo highlighted.
European pharma consolidation is also active elsewhere. Private equity firm CVC and its partners recently secured a majority of Recordati, showing that investors are willing to pay for established healthcare assets.
Watch for Sanofi's first large deal under its new leadership and for any update to its medium-term targets. A strong, cash-generative Sanofi with an open appetite for acquisitions could lift valuations for late-stage biotechs in rare diseases and immunology across Europe.
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