Sanofi Anticipates Limited Impact from Potential EU Drug Tariffs in 2025

French pharmaceutical giant Sanofi has expressed confidence that potential tariffs on drugs imported from the European Union will have minimal effect on its finances in 2025. This assurance comes amid ongoing uncertainty surrounding trade negotiations between the United States and the EU.

Tariff Implications and Inventory Strategy

During Sanofi's second-quarter earnings call, CFO François Roger addressed concerns about the proposed 15% tariff on EU drug imports. Roger stated that the company has not factored the tariff into its guidance, citing substantial inventory already in place within the U.S. market. This strategic stockpiling is expected to insulate Sanofi from immediate financial impacts should the tariff be implemented.

CEO Paul Hudson echoed this sentiment, noting that while the exact details of the tariff remain unclear, the company is prepared to deliver on its 2025 guidance. Hudson emphasized, "Don't feel we're casual about it because we're absolutely not," highlighting Sanofi's proactive approach to potential trade challenges.

Strong Financial Performance and Growth Drivers

Sanofi reported impressive financial results for the second quarter, with sales growth of 10.1% at constant exchange rates. This robust performance has led the company to revise its full-year forecast, now predicting a high single-digit percentage increase in sales for 2025.

Key growth drivers include:

• Dupixent: Sales grew over 20% to 3.8 billion euros ($4.3 billion), bolstered by its launch in chronic obstructive pulmonary disease.
• Altuviiio: The hemophilia A therapy saw a remarkable 90% increase in revenues, reaching 291 million euros ($333 million).
• Established products: Lantus, Toujeo, and Praluent each experienced growth of 10% or more.

Industry Perspectives on Global Healthcare Access

Hudson addressed broader industry issues, including the debate over drug pricing disparities between the U.S. and EU. He advocated for increased healthcare budgets in European countries to improve patient access to innovative therapies, stating, "There's a lot of people who could contribute to economies and GDP if medicines were made available to them."

This stance aligns with ongoing discussions about balancing innovation funding and healthcare accessibility across different markets. Hudson emphasized, "As a healthcare company, we'd like to see more patients get access," underscoring Sanofi's commitment to expanding treatment availability globally.