Sanofi Warning Outweighs Spinoff, Prompting €19.5 Billion Plunge

Sanofi shares plunged after a surprise forecast for lower profit next year overshadowed optimism about a plan to spin off the consumer health division.

The stock dropped as much as 16% in Paris trading, a record, wiping €19.5 billion ($20.6 billion) from Sanofi’s market value.

The drugmaker warned that increased investments in research and development and a tax-rate change will cause 2024 earnings to fall from 2023 levels. It also posted disappointing third-quarter earnings.

The Sanofi SA headquarters in Paris, France.

Photographer: Nathan Laine/Bloomberg

Sanofi’s 2024 guidance is about 9% below what analysts had been expecting, and the company may further disappoint since it removed a 2025 profit target ...