Sanofi Q3 2013 Marks the End of the Patent Cliff Period
PARIS, Oct. 30, 2013 /PRNewswire/ — Sanofi (NYSE: SNY; EURONEXT: SAN)
Q3 2013 Change Change 9-month 2013 Change Change (reported) (CER) (reported) (CER) Net sales EUR8,432m -6.7% +0.6% EUR24,494m -7.3% -2.8% Business net income(1) EUR1,789m -18.7% -8.9% EUR4,877m -25.6% -19.1% Business EPS(1) EUR1.35 -19.2% -9.0% EUR3.68 -26.0% -19.3% In order to facilitate an understanding of our operational performance, we comment on our business net income statement. Business net income(1) is a non- GAAP financial measure. The consolidated income statement for the first 9 months of 2013 is provided in Appendix 4 and a reconciliation of business net income to consolidated net income in Appendix 3. Consolidated net income for the first 9 months of 2013 was EUR2,661 million, compared to EUR4,501 million(2) for the first 9 months of 2012. Consolidated EPS for the first 9 months of 2013 was EUR2.01 versus EUR3.41(2) for the first 9 months of 2012.
Commenting on the Group’s performance in Q3 2013, Sanofi Chief Executive Officer, Christopher A. Viehbacher said,
“The third quarter marks an inflection point for Sanofi as the impact of the patent cliff ended in August. As a result, we returned to sales growth((3) )in September. Our growth platforms((4)) grew 5.5% in the third quarter despite the shortage of pertussis-containing vaccines in the U.S. until mid-October, the impact of the market slowdown in China and our recovering generics business in Brazil. Growth platforms now represent 75% of our sales. We continue to make strong progress in R&D with recent approvals for Aubagio(®) and Lemtrada(TM) in EU, Nasacort(®) Allergy 24HR for OTC use and NexGard(TM) in the U.S. We also released positive results for the first Phase III with alirocumab and for a large study with Fluzone(®) High-Dose.”
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Q3 2013 Performance
-- Total sales((3) )increased for the first time in five quarters by 0.6% to EUR8,432 million. -- Emerging Markets((5)) sales were EUR2,652 million, an increase of 2.8% and were impacted by lower growth in the Chinese pharmaceutical market and lower sales of Brazil generics. -- Diabetes sales grew 20.1% to EUR1,670 million and Lantus(®) sales reached EUR1,456 million (+21.2%). -- Vaccines sales were EUR1,300 million (-7.2%) affected by supply limitations of Pentacel(®) and Adacel(®) in the U.S. and the quarterly phasing of U.S. flu vaccines sales. Sanofi expects record flu sales in the Northern Hemisphere in H2 2013 resulting from its differentiated vaccines offerings. -- Consumer Healthcare achieved strong sales growth (+9.8%) reflecting notably the launch of Rolaids(®) in the U.S. and the improvement of our CHC business in China. -- Genzyme grew +21.1% to EUR529 million driven by the 11.1% growth of the rare disease franchise and the launch of Aubagio(®). -- Animal Health sales were EUR458 million, down 6.4% due to increased competition to Frontline(®). In September, the FDA approved NexGard(TM), a new chewable anti-parasiticide for the treatment and prevention of fleas and ticks in dogs. -- Growth platforms((4)) sales reached EUR6,298 million, an increase of 5.5% and accounted for 74.7% of total sales. -- Q3 2013 business EPS((1)) was EUR1.35, down 9.0%
-- Positive results for the first Phase III trial with alirocumab and for a large study with Fluzone(®) High-Dose were recently announced. We anticipate the release of the EDITION III and IV studies for U300 in the fourth quarter. -- Multiple approvals were also granted including: Lemtrada(TM) and Aubagio(®) in the EU for multiple sclerosis; NexGard(TM), a new anti-parasiticide for dogs in the U.S., and Nasacort(®) Allergy 24HR for Over-the-Counter use in the U.S. The EU filing for Cerdelga(TM) (eliglustat) has also been accepted for review.
-- Taking into account the expected return to growth in the fourth quarter and including the impact of extended vaccines shortage in the third quarter, the outlook for 2013 is now expected to be at the lower end of previous guidance range. 2013 business EPS is therefore expected to be around 10% lower than 2012 at CER((6)), barring major unforeseen adverse events.
(1) See Appendix 6 for definitions of financial indicators (page 22 at http://bit.ly/1cq7R2O); (2) Including impact of transition to IAS 19R; (3) Growth in net sales is expressed at constant exchange rates (CER) unless otherwise indicated (see Appendix 6 on page 22 at http://bit.ly/1cq7R2O for a definition); (4) See page 2 at http://bit.ly/1cq7R2O; (5) See definition on page 7 at http://bit.ly/1cq7R2O; (6) 2012 business EPS with the retroactive application of IAS19R was EUR6.14
To access the full press release of the Q3 2013 results, please click here: http://en.sanofi.com/Images/34723_20131030_Q32013_en.pdf
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Sanofi, a global and diversified healthcare leader, discovers, develops and distributes therapeutic solutions focused on patients’ needs. Sanofi has core strengths in the field of healthcare with seven growth platforms: diabetes solutions, human vaccines, innovative drugs, rare diseases, consumer healthcare, emerging markets, animal health and the new Genzyme. Sanofi is listed in Paris (EURONEXT: SAN) and in New York (NYSE: SNY).
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