Shares of Sanofi SA (SNY) tumbled 5.20% in pre-market trading on Thursday following the release of its second-quarter earnings report. The French pharmaceutical giant's results revealed lower-than-expected profits, despite meeting sales expectations, as higher costs and currency headwinds weighed on the company's bottom line.

Sanofi reported earnings per share of €1.59 for Q2, falling short of the €1.67 estimated by analysts. This represents a modest 1.9% increase from the previous year but disappointed investors who were expecting stronger profit growth. The company's quarterly sales of $11.33 billion were in line with expectations, primarily driven by continued strong performance of its blockbuster drug Dupixent.

While Sanofi raised its full-year sales guidance to high single-digit percentage growth at constant exchange rates, it maintained its profit outlook for low double-digit percentage growth. The company's Chief Financial Officer, François-Xavier Roger, attributed the lower-than-expected earnings partly to increased research and development spending, as Sanofi invests heavily in developing new treatments to diversify beyond Dupixent. The pharmaceutical firm is also facing challenges from currency fluctuations and higher selling, general, and administrative expenses. These factors have collectively dampened investor enthusiasm, leading to the significant pre-market decline in Sanofi's stock price.