Sanofi's Vaccine Sales Decline Amid Shifting Market Dynamics

Sanofi, a major player in the 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 the complex landscape of the vaccine market, with some products facing challenges while others show promise.

Legacy Vaccine Business Faces Headwinds

Sanofi's legacy vaccines business, which includes its flu and COVID-19 shots, experienced a notable downturn in the third quarter. Sales in this segment fell by nearly 8% to €3.36 billion ($3.9 billion), with flu and COVID-19 vaccine sales specifically declining by 17% to €1.53 billion ($1.78 billion).

CEO Paul Hudson attributed the decline to "increased price competition and lower vaccination rates" in the flu vaccine business. The company also cited pricing pressures in European markets, particularly in Germany, as contributing factors to the overall decrease in vaccine revenue.

Bright Spots in Sanofi's Vaccine Portfolio

Despite the challenges faced by its legacy vaccines, Sanofi has seen success with newer offerings. Beyfortus, the company's vaccine for respiratory syncytial virus (RSV) lower respiratory tract disease, demonstrated strong performance with sales reaching €739 million ($858 million), marking a nearly 20% increase. The vaccine's global rollout has been a key driver, with availability now extending to 40 countries.

Strategic Moves and Future Outlook

In response to the changing vaccine landscape, Sanofi has made strategic decisions to position itself for future growth:

1. The company partnered with Novavax in May 2024, taking over the commercialization of the COVID-19 vaccine Nuvaxovid. This collaboration included a $500 million upfront payment and the potential for $700 million in milestones.

2. Sanofi and Novavax are developing a combination COVID/flu vaccine, with preliminary positive results reported for the SP0287 program. The company is currently in discussions with regulators regarding this potential new offering.

3. In a strategic realignment, Sanofi announced the discontinuation of its SP0125 RSV vaccine for toddlers following insufficient efficacy results in the Phase III PEARL trial.

As the pharmaceutical industry continues to navigate the post-pandemic landscape, Sanofi's third-quarter results highlight the ongoing challenges and opportunities in the vaccine market. The company's focus on innovative products like Beyfortus and potential combination vaccines may help offset declines in traditional vaccine sales, as it adapts to evolving market conditions and public health needs.