Sanofi market value tanks following weak results on eczema drug trials

"Shares in French drugmaker Sanofi fell more than 10% on Thursday, wiping nearly $13 billion off its market value, after late-stage trial data for its experimental inflammatory disease drug amlitelimab disappointed Wall Street. The company said amlitelimab, which it is developing for atopic dermatitis, a severe form of eczema, met all main goals in the Phase III study, showing statistically significant improvements in skin clearance and disease severity compared with placebo after 24 weeks."

"The company has billed amlitelimab as a potential successor to Dupixent, and Barclays analyst Emily Field told Reuters investors had viewed amlitelimab as Sanofi's lead pipeline asset to follow on from that drug ahead of the data release. "That's why we're seeing a big reaction in the stock, because of the concern that Sanofi is not going to have enough in its pipeline to replace Dupixent after patent expiry," Field said. "This is increasingly looked at as a cliff stock.""

"Dupixent, which Sanofi jointly developed and co-owns with drugmaker Regeneron, is approved not only for eczema but also for other immune-related conditions, including severe asthma. With the patent expiry looming, Sanofi has doubled down on immunology, making amlitelimab a pillar of that effort. JPMorgan said the data confirmed the drug is less effective than Dupixent, which brought in about 13 billion euros ($15.22 billion) in sales for Sanofi in 2024."

Sanofi's shares plunged over 10%, erasing nearly $13 billion in market value, after Phase III results for amlitelimab disappointed investors. Amlitelimab met all primary endpoints, showing statistically significant improvements in skin clearance and disease severity versus placebo after 24 weeks. The observed efficacy lagged behind Dupixent, Sanofi's top-selling biologic, intensifying concerns about the company's ability to replace Dupixent after its 2031 patent expiry. Analysts noted a favorable safety profile and a convenient 12-week dosing schedule for amlitelimab, but several banks judged it less effective than Dupixent and rival biologics, reducing expectations for the immunology pipeline.

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