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Sanofi Share Price Gains on Earnings Forecast Upgrade

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Updated: 29 July 2020

Shares of Sanofi (EPA: SAN) jumped 1% after the French drugmaker said its income rose 5.6% in the second quarter. As a result, the firm has raised its full-year earnings forecast to 6-7%, higher than 5% previously expected.

The world's fifth-largest pharma company saw its net income rise by 5.6% to 1.6 billion euros. Sanofi implemented a series of cost-cutting measures which saved nearly 1 billion. In June, Sanofi cut 1,680 jobs to slash costs and boost profits. 

COVID19 coronavirus vaccine July 2020

The French giant also said it made $11.7 billion from selling shares in Regeneron two months ago. However, revenue fell 3.4% to 8.2 billion euros on the back of a weaker-than-expected performance of its vaccine and consumer healthcare businesses.

“I’m proud of what the team delivered in the second quarter. Even with some headwinds from the COVID-19 pandemic, we achieved business EPS growth,” said Sanofi’s Chief Executive Officer Paul Hudson. 

The UK government said today it agreed to buy 60 million doses of potential COVID-19 vaccine from Sanofi and GlaxoSmithKline in a deal worth £500 million.  

“With our partner GSK, we are pleased to co-operate with the UK government as well as several other countries and global organisations as part of our ongoing efforts to develop a safe and effective vaccine and make it available as quickly as possible,” commented Thomas Triomphe, executive vice-president and global head of Sanofi Pasteur.

Sanofi share price edges higher on strong Q2 results July 2020

Sanofi share price is trading around the 90.00 mark. Last week, the share price surged to print a 5-year high.