Sanofi Proposes Rising Dividend To Its Shareholders After Soaring Annual Net Profit

Sanofi Proposes Rising Dividend To Its Shareholders After Soaring Annual Net Profit

The group’s net profit increased by nearly 340% in one year.

The Sanofi research and development site in Vitry-sur-Seine (Val-de-Marne), January 19, 2021. (MICHEL STOUPAK / NURPHOTO / AFP)

The French pharmaceutical giant Sanofi will offer a higher dividend after having published, on Friday February 5, a very strong net profit in 2020, boosted by the sale of its Regeneron shares. This dividend will be increased to 3.20 euros per share held (against 3.15 for the previous year), according to the unions, and will represent a payment of more than 4 billion euros to its shareholders.

In detail, the laboratory’s net profit reached 12.3 billion euros against 2.8 billion a year earlier, an increase of nearly 340%. This includes a significant capital gain of more than 7 billion euros generated by the sale of a large part of its Regeneron shares, an American biotech which develops synthetic antibodies, in particular used to treat Covid-19.

This announcement comes as the group is under fire from critics after the delay in the development of its anti-Covid vaccine and its job cuts in research (400 jobs in France). “Sanofi is not the only laboratory in France to reduce its research and development teams”, analyzed recently on franceinfo Frédéric Bizard, professor of economics at ESCP Business School. “Research is often done outside, in biotech companies, with licenses that are purchased.”