Sanofi delivers 2017 business EPS(1) in line with guidance.
“In 2017, we continued to execute on our strategic goals with the strong launch of Dupixent, the positive pivotal data for cemiplimab and for dupilumab in asthma,” Olivier Brandicourt, Sanofi chief executive officer, commented. “At the same time, we managed the challenges in U.S. diabetes as well as the impact from sevelamer generics and Dengvaxia.
“Recently, we announced a series of strategic steps—we are obtaining the global rights to fitusiran and plan to acquire Bioverativ and Ablynx—which will establish Sanofi as a new global leader in rare blood disorders,” Brandicourt continued. “Additionally, these actions will further strengthen our pipeline and provide us with the powerful new Nanobody technology platform. Overall, after a period of significant reshaping since 2015, we are positioned to drive growth in 2018.”
| Q4 2017 | Change | Change at CER |
Change at CER/CS(2) |
2017 | Change | Change at CER |
Change at CER/CS(2) |
|
| IFRS net sales reported | €8,691m | -2.0% | +4.1% | -1.6% | €35,055m | +3.6% | +5.6% | +0.5% |
| IFRS net income reported | €129m | -83.7% | – | – | €8,434m | +79.1% | – | – |
| IFRS EPS reported | €0.10 | -83.9% | – | – | €6.71 | +83.3% | – | – |
| Business net income(1) | €1,332m | -17.1% | -10.8% | – | €6,964m | -4.7% | -2.6% | – |
| Business EPS(1) | €1.06 | -15.2% | -8.8% | – | €5.54 | -2.5% | -0.4% | – |
Fourth-quarter and 2017 accounts reflect the acquisition of the former Boehringer Ingelheim Consumer Healthcare (CHC) business and the disposal of the Animal Health business (completed on January 1, 2017). In accordance with IFRS 5 (Non-Current Assets Held for Sale and Discontinued Operations), Animal Health results in 2016 and gain on disposal in 2017 are reported separately. Fourth-quarter and 2017 income statements also reflect the consolidation of European operations related to Sanofi vaccine portfolio, following the termination of the Sanofi Pasteur MSD joint venture (SPMSD JV) with Merck at the end of 2016.
Q4 2017 sales reflect strong Dupixent launch offset by anticipated declines in U.S. diabetes and Renagel
- Net sales were €8,691 million, down 2.0% on a reported basis and up 4.1%(3) at CER. At CER/CS(3), net sales were down 1.6%.
- Strong Sanofi Genzyme sales growth (up 16.8%) driven by contribution from new immunology franchise.
- Sanofi Pasteur sales increased 1.2% at CER/CS impacted by order phasing effects and Dengvaxia.
- CHC sales grew 2.5% at CER/CS.
- Diabetes and Cardiovascular GBU sales down 19.1%.
- Emerging Markets(4) sales increased 2.1% at CER/CS, driven by Pharmaceuticals which increased 4.0% at CER/CS.
Sanofi Genzyme, Sanofi Pasteur and Emerging Markets sales growth more than offset Diabetes sales decline in 2017
- Net sales in 2017 were €35,055 million, up 3.6% on a reported basis and 5.6%(2) at CER. Net sales were up 0.5% at CER/CS.
- Sanofi Genzyme grew 15.1% to €5,674 million while Sanofi Pasteur increased 8.3% (at CER/CS) to €5,101 million.
- Emerging Markets sales were up 6.0% at CER/CS supported by strong performance in China (up 15.1% at CER/CS).
- Diabetes and Cardiovascular GBU sales declined 14.3% to €5,400 million.
Sanofi meets its full-year 2017 business EPS guidance
- Q4 2017 business EPS(1) decreased 8.8% at CER to €1.06, including financial impact from Dengvaxia (-€0.10).
- 2017 business EPS(1) of €5.54 (-0.4% at CER) and IFRS EPS of €6.71 (+83.3% on a reported basis).
- Net debt was €5,229 million at the end of 2017, a decrease from €8,206 million at the end of 2016.
- Board proposes dividend of €3.03, an increase of 2.4%.
- 2017 business net income (BNI) effective tax rate unaffected by the U.S. tax reform. In 2018, Sanofi expects the BNI effective tax rate to be around 22% primarily as a result of U.S. tax reform(5).
Sanofi progresses on its strategic priorities
- Sanofi to acquire Bioverativ(6) for $11.6 billion to expand in specialty care and strengthen its leadership in rare diseases.
- Sanofi to acquire Ablynx(6) for €3.9 billion to strengthen its R&D strategy with innovative Nanobody technology platform.
- Agreement signed with Regeneron to accelerate and expand investments for the development of cemiplimab and dupilumab.
- FDA supplemental BLA submission for dupilumab in uncontrolled persistent asthma for adults and adolescents.
2018 financial outlook
- Sanofi expects 2018 business EPS(1) to grow between 2% and 5%(7) at CER, including the anticipated contribution from the recently announced acquisitions, barring unforeseen major adverse events. Applying the average December 2017 exchange rates, the currency impact on 2018 business EPS is estimated to be -3% to -4%.
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References: |
(1) In order to facilitate an understanding of operational performance, Sanofi comments on the business net income statement. Business net income is a non-GAAP financial measure.
(2) CS: constant structure: adjusted for BI CHC business, termination of SPMSD and others;
(3) changes in net sales are expressed at constant exchange rates (CER) unless otherwise indicated;
(4) See definition page 8 in full earnings report;
(5) based on current understanding of the US tax reform;
(6) Subject to the completion of the acquisition;
(7) 2017 business EPS was €5.54
(Source: Sanofi)
Filed Under: Drug Discovery
