Benzinga | Feb 5, 2021 07:15AM EST

Sanofi Swings To Forth Quarter Profit Despite Lower Sales; Expands Cost-Savings Push By 500M

* Sanofi SA (NASDAQ: SNY) posted a profit for the fourth quarter of 2020 at (euro)1.08 billion, a turnaround from a loss of (euro)10 million a year ago. However, sales came at (euro)9.38 billion, down 2.4% year-over-year on a reported basis. Business net income was (euro)1.53 billion in the quarter, largely flat from the previous year.

* On a constant currency basis, total sales rose 4.2%, thanks to a substantial revenue increase of its eczema treatment Dupixent that rose 54.2% despite the coronavirus pandemic. Higher influenza vaccine sales also helped offset lower demand for its cardiovascular and diabetes drugs as the spread of coronavirus prompted many to stay away from doctors' offices and hospitals.

* The company also said that it expects earnings per share to increase by "high single digits" on a constant currency basis in 2021.

* The company has also pledged to expand the cost savings plan target by (euro)500 million to (euro)2.5 billion by 2022, plowed back into pipeline R&D and top-line growth.

* In the medium term, Sanofi confirmed its target of expanding its business operating income margin to 30% by 2022.

* Sanofi, which is one of the world's biggest vaccine makers, confirmed that it aims to get a COVID-19 shot to market by the fourth quarter of this year after the company delayed their COVID-19 vaccine due to insufficient response in the elderly.

* After this setback, the company announced manufacturing 125 million doses for COVID-19 vaccine co-developed by its rival Pfizer Inc and BioNTech SE, in its Frankfurt plant by mid of this year.

* Have a look at the Q4 earnings presentation here.

* Price Action: SNY shares perked up 2.55% at $48.32 in premarket trading on the last check Friday.