Sanofi kicked off the year with a strong performance, posting better-than-expected sales and profits in the first quarter. The French pharmaceutical giant reported on Thursday that its business operating profit — a key metric that strips out one-time items — jumped 20% to €2.90 billion (around $3.28 billion). This growth was fueled by a higher gross margin and careful management of operating expenses.

Sales for the quarter climbed 11% to €9.895 billion, driven mainly by surging demand for Dupixent, its blockbuster anti-inflammatory drug. Dupixent alone brought in €3.48 billion in sales, slightly beating analysts’ forecasts of €3.44 billion, according to Visible Alpha consensus data.

Overall, analysts had expected a business operating profit of €2.68 billion on sales of €9.64 billion — meaning Sanofi comfortably outperformed on both fronts. Meanwhile, business earnings per share rose 17% to €1.79.

Looking ahead, Sanofi is considering ramping up its investments in U.S. drug manufacturing. During a media call, Chief Financial Officer François-Xavier Roger noted that the company is weighing additional moves to boost local production. This comes as the U.S. government, under the Trump administration, signals plans to impose tariffs on imported medicines — a sector that has so far been largely exempt — and pushes to revive domestic manufacturing.

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Despite the external challenges, Sanofi maintained its full-year guidance and highlighted progress on its €5 billion share buyback program, having already repurchased 72% of the planned amount.