Sanofi's Vaccine Sales Decline Amid Shifting Market Dynamics

Sanofi, a leading player in the global pharmaceutical industry, has reported a significant decline in its vaccine sales for the third quarter of 2025, reflecting broader trends in vaccination rates and market pressures. The company's latest financial results reveal challenges in its legacy vaccine business, particularly in the areas of COVID-19 and influenza vaccines, while showing promise in newer product lines.

Legacy Vaccine Business Faces Headwinds

Sanofi's legacy vaccines business experienced a nearly 8% decline in the third quarter, with sales dropping to €3.36 billion ($3.9 billion). This downturn was primarily attributed to falling vaccination rates for flu and COVID-19 in the United States. The combined sales for these two vaccine categories saw a steeper decline of almost 17%, totaling €1.53 billion ($1.78 billion) for the period.

CEO Paul Hudson acknowledged the challenges, stating, "As expected, our flu vaccines business declined because of increased price competition and lower vaccination rate." The company also faced pricing pressures in other markets, particularly in Germany, further impacting vaccine revenues.

Beyfortus Shines Amidst Overall Decline

Despite the setbacks in its traditional vaccine portfolio, Sanofi reported a bright spot with Beyfortus, its vaccine for respiratory syncytial virus (RSV) lower respiratory tract disease. Beyfortus sales increased by nearly 20%, reaching €739 million ($858 million). This growth was driven by successful rollouts across 40 countries, demonstrating the potential of Sanofi's newer vaccine offerings.

Strategic Moves and Future Outlook

In response to changing market dynamics, Sanofi has been making strategic adjustments to its vaccine business. The company partnered with Novavax in May 2024, taking over the commercialization of the COVID-19 vaccine Nuvaxovid. This collaboration also includes the development of a combination COVID/flu vaccine, with preliminary positive results reported for the SP0287 program.

However, not all ventures have proven successful. Sanofi announced the discontinuation of its SP0125 RSV vaccine for toddlers following a futility analysis in the Phase III PEARL trial, which determined insufficient efficacy.

As the pharmaceutical landscape continues to evolve, Sanofi's vaccine business faces both challenges and opportunities. The company's ability to navigate declining sales in traditional segments while capitalizing on growth in newer areas will be crucial for its future performance in the highly competitive vaccine market.