Sanofi (NYSE:SNY) Q3 2020 Earnings Conference Call - Final Transcript
Oct 29, 2020 • 09:30 am ET
Ladies and gentlemen, thank you for standing by. Welcome to the Sanofi Investor Call on the Q3 2020 earnings. I would now like to turn the call over to Eva Schaefer-Jansen from Sanofi Investor Relations. Please go ahead, madam.
Thank you, and good morning and good afternoon to everyone on the call. Thank you for joining us to review Sanofi's third quarter results. As usual, you can find the slides for this call on the Investors page of our website at sanofi.com. Moving to Slide 2, I would like to remind you that information presented in this call contain forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. I refer you to our Form 20-F document on file with the SEC and also our Document d'Enregistrement Universel for a description of these three risk factors. With that, please advance to Slide 3. Our speakers on the call today are: Paul Hudson, Chief Executive Officer; our GBU heads: Bill Sibold, Thomas Triomphe, Olivier Charmeil and Julie Van Ongevalle; Jean-Baptiste de Chatillon, our Chief Financial Officer; and also John Reed, Head of R&D. Paul will make some introductory remarks, followed by our GBU heads, who will review the third quarter performance of their respective businesses. Jean-Baptiste will provide an overview on the key financials, and John Reed will update you on recent pipeline developments. After concluding remarks, we will open for a Q&A session. With that, I'd like to turn the call over to Paul.
Well, thank you, Eva, and hello to everyone on the call. So it's a year since my first earnings call. And quite frankly, I continue to be astounded in the way of our people have embraced our Play to Win strategy, especially in the backdrop of a global pandemic. The third quarter is another strong proof point for the organization that we are delivering on this strategy relentlessly. Sales and EPS grew by 5.7% and 8.8%, respectively, in constant currency. Driving this performance was another outstanding 69% increase in Dupixent sales and double-digit growth from our Vaccines business, which actually set a record for flu vaccine sales in the quarter. So really, a tremendous quarter, and we are increasing our full year guidance to 7% to 8% EPS growth at CER, and Jean-Baptiste will provide the details shortly about that. As I highlighted last quarter, our leadership team is now complete, and I'm excited to have each of our GBU heads talk about their businesses today. Given the very dynamic business environment in the U.S. currently, I wanted to highlight how well positioned Sanofi is in the key market for continued success with our innovative medicines and differentiated Vaccines business. In the third quarter, the U.S. business represented 42% of company sales, with a strong double-digit growth. Looking to 2021, we expect our payer coverage to be largely unchanged. Sanofi has a low single-digit exposure to Medicare Part B and Medicaid as a percentage of company net