Sanofi delivers robust Q1 2017 financial results.
The comapny reported that the first-quarter 2017 results reflect the acquisition of the former Boehringer Ingelheim Consumer Healthcare (CHC) business and the disposal of the Animal Health business, completed January 1, 2017. The first quarter income also reflects the consolidation of European operations related to Sanofi vaccine portfolio, following the termination of the Sanofi Pasteur MSD joint venture with Merck in December 2016.
“We have started the year with robust growth driven by specialty care and vaccines as well as good performance in emerging markets,” Olivier Brandicourt, Sanofi CEO, commented. “Our top line in the first quarter also benefited from the integration of the Boehringer Ingelheim CHC and European vaccine businesses. At the same time, the simplified organization continues to contribute to Sanofi’s financial performance.
“The U.S. launch of Dupixent for moderate-to-severe atopic dermatitis marks a key innovation milestone on our strategic roadmap and lays the foundation for our new immunology franchise,” Brandicourt continued. “We are excited to bring this highly innovative medicine to patients suffering from this devastating disease.”
|Q1 2017||Change||Change at CER|
|Business net income||€1,795m||+4.2%||+1.0%|
Q1 2017 Sales Growth
- Net sales were €8,648 million, up 11.1% on a reported basis and 8.6% at constant exchange rates (CER) reflecting the acquisition of Boehringer Ingelheim’s (BI) CHC business and full consolidation of Sanofi’s European vaccine operations. At constant structure and CER, net sales were up 3.5%.
- Sanofi Genzyme (Specialty Care) GBU sales increased 15.5% at CER driven by Multiple Sclerosis products.
- Diabetes and Cardiovascular GBU sales were down 7.7% at CER; Global Diabetes franchise sales decreased 6.0%.
- Sanofi Pasteur GBU grew 13.2% at CER and constant structure due to the strong performance of pediatric combinations.
- CHC GBU sales were up 4.7% at CER and constant structure driven by the performance in Europe.
- Emerging Markets sales increased 8.5% at CER and constant structure.
Financial Results and 2017 Guidance Confirmed
- Business operating income of €2,442 million, up 7.6% at CER and constant structure.
- Business EPS grew 3.0% at CER to €1.42 and increased 6.0% on a reported basis.
- Sanofi continues to expect 2017 Business EPS to be stable to -3% at CER, barring unforeseen major adverse events.
- IFRS net income of €5,701 million (up 424%) included a net gain of €4,427 million resulting from the divestment of Merial.
The 2020 Roadmap
- Integration of Boehringer Ingelheim CHC business on track, enhancing Sanofi’s position in key categories and regions.
- Following the termination of the SPMSD JV, European vaccine business now fully driven by Sanofi.
- Dupixent, a breakthrough therapy for moderate-to-severe atopic dermatitis, now available to adult patients in the U.S.
- Soliqua 100/33, first once-daily fixed combination of Lantus and lixisenatide for type-2 diabetes, launched in the U.S.
- Kevzara BLA for the treatment of rheumatoid arthritis granted PDUFA date of May 22, 2017.
- FDA approval of Xyzal Allergy 24H for OTC use and launch underway ahead of the U.S. spring allergy season.
Sanofi expects 2017 Business EPS to be stable to -3% at CER, barring unforeseen major adverse events, consistent with its previously announced Strategic Roadmap guidance for the 2016-17 period. Applying the average March 2017 exchange rates to the rest of the year, the currency impact on 2017 Business EPS is estimated to be +3% to +4%.
€1 = $1.09 on April 28, 2017
Filed Under: Drug Discovery