Sanofi Lifts FY16 View As Q3 Profit Up; Plans EUR3.5 Bln Stock Buyback; Stock Up

(RTTNews) - Shares of Sanofi (SNYNF, SNY) were gaining around 7 percent in the morning trading in Paris after the French drug maker on Friday raised its 2016 business earnings guidance, after it reported strong third-quarter results. In addition, the company set a 3.5 billion euros share repurchase program to be completed by the end of 2017.

The company now expects full-year business earnings per share, a non-GAAP measure, to grow between 3 percent and 5 percent at constant exchange rates. The currency impact on full-year business earnings per share is projected to be around negative 4 percent. Previously, Sanofi was expecting full-year business earnings to be broadly stable at constant exchange rates.

Sanofi Chief Executive Officer Olivier Brandicourt said, "We have generated solid sales momentum in the third quarter .... With the filing of Dupixent, we now have another important product under FDA review which we believe will enhance Sanofi's growth profile in the coming years."

In its third quarter, net income attributable to equity holders, on IFRS basis, grew 2.8 percent to 1.674 billion euros from 1.628 billion euros a year ago. Earnings per share increased 4 percent to 1.30 euros from 1.25 euros.

Business income rose 9.7 percent to 2.3 billion euros, and business earnings per share were up 11.2 percent at 1.79 euros.

Net sales, on IFRS basis, grew 2 percent to 9.028 billion euros from last year's 8.85 billion euros.

Aggregate company sales, including Animal Health business, rose 2.1 percent to 9.652 billion euros. At constant exchange rates, aggregate company sales increased 3.0 percent.

In the quarter, the company recorded solid sales performance despite continuing headwinds in diabetes and the Plavix LOE in Japan.

Sanofi Genzyme Specialty Care unit generated 16.9 percent higher sales, and Sanofi Pasteur sales grew 14.4 percent supported by early flu vaccines shipment in the U.S.

Diabetes and Cardiovascular unit sales decreased 2.5 percent and Global diabetes franchise sales declined 1.5 percent.

In the quarter, aggregate sales in Emerging Markets grew 5.6 percent driven by Diabetes and Rare Disease portfolios.

Further, the company said cost savings are now expected to be at least 1.5 billion euros by 2018.

In Paris, Sanofi shares were trading at 73.84 euros, up 7.23 percent.