Sanofi delivered solid growth in Q2 2019
Paris, July 29, 2019
Sanofi delivered solid growth in Q2 2019
Q2 2019 | Change | Change at CER | H1 2019 | Change | Change at CER | |
IFRS net sales reported | €8,628m | +5.5% | +3.9% | €17,019m | +5.9% | +4.1% |
IFRS net income reported | -€87m | -111.4%(2) | - | €1,050m | -40.9% | - |
IFRS EPS reported | -€0.07 | -111.5%(2) | - | €0.84 | -40.8% | - |
Business net income(1) | €1,641m | +5.3% | +4.9% | €3,406m | +7.9% | +7.0% |
Business EPS(1) | €1.31 | +4.8% | +4.8% | €2.73 | +7.9% | +7.1% |
Second-quarter 2019 sales growth(3) driven by Sanofi Genzyme, Sanofi Pasteur and Emerging Markets
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Sanofi Chief Executive Officer, Olivier Brandicourt, commented: “Sanofi continued its growth phase with a solid business performance in the second quarter, led by the strong launch of Dupixent® driven by the accelerated uptake in atopic dermatitis and asthma in the U.S. Specialty Care and Vaccines were significant contributors across all geographies. Our increased focus in R&D delivered important results with several positive data read-outs and the achievement of regulatory milestones. We are confident in the growth outlook for the year. Consequently, we have revised upward our guidance for full-year business EPS growth to approximately 5%.” |
(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 (see Appendix 10 for definitions). The consolidated income statement for Q2 2019 is provided in Appendix 3 and a reconciliation of reported IFRS net income to business net income is set forth in Appendix 4;(2) including a €1.8 billion impairment charge mainly related to Eloctate® – see page 12; (3) Changes in net sales are expressed at constant exchange rates (CER) unless otherwise indicated (see Appendix 10); (4) Constant Structure: Adjusted for divestment of European Generics business and sales of Bioverativ products to SOBI; (5) See definition page 9; (6) 2018 business EPS was €5.47.
Investor Relations: (+) 33 1 53 77 45 45 - E-mail: IR@sanofi.com - Media Relations: (+) 33 1 53 77 46 46 - E-mail: MR@sanofi.com Website: www.sanofi.com Mobile app: SANOFI IR available on the App Store and Google Play |
2019 Second-quarter and first-half Sanofi sales
Unless otherwise indicated, all percentage changes in sales in this press release are stated at CER(7). |
In the second quarter of 2019, Company sales were €8,628 million, up 5.5% on a reported basis. Exchange rate movements had a positive effect of 1.6 percentage points mainly driven by the U.S. dollar which largely offset the negative impact from the Argentine Peso and Turkish Lira. At CER, Company sales increased 3.9%.
First-half Company sales reached €17,019 million, up 5.9% on a reported basis. Exchange rate movements had a favorable effect of 1.8 percentage points. At CER, Company sales were up 4.1%.
Global Business Units
The table below presents sales by Global Business Unit (GBU). Please note that Emerging Markets sales for Specialty Care and Primary Care are included in the China & Emerging Markets GBU.
Net Sales by GBU (€ million) | Q2 2019 | Change at CER | H1 2019 | Change at CER | ||
Sanofi Genzyme (Specialty Care)(a) | 2,292 | +21.8% | 4,311 | +25.9%(c) | ||
Primary Care(a) | 2,281 | -15.7%(d) | 4,566 | -16.3%(e) | ||
China & Emerging Markets(b) | 1,891 | +7.0% | 3,849 | +8.7% | ||
Total Pharmaceuticals | 6,464 | +1.7% | 12,726 | +2.4% | ||
Consumer Healthcare (CHC) | 1,143 | +1.1% | 2,399 | +0.8% | ||
Sanofi Pasteur (Vaccines) | 1,021 | +24.7% | 1,894 | +22.5% | ||
Total net sales | 8,628 | +3.9% | 17,019 | +4.1%(f) |
(a) Does not include China & Emerging Markets sales - see definition page 10; (b) Includes Emerging Markets sales for Primary Care and Specialty Care; (c) +18.6% at CS -Adjusted for Bioverativ acquisition and sales of Bioverativ products to SOBI –see page 5; (d) -10.4% at CS; (e) -11.1% at CS; (f) +4.8% at CS - Adjusted for Bioverativ and sales of Bioverativ products to SOBI and European Generics.
Global Franchises
The tables below present second-quarter and first-half 2019 sales by global franchise, including Emerging Markets sales, to facilitate comparisons. Appendix 1 provides a reconciliation of sales by GBU and franchise.
Net sales by Franchise (€ million) | Q2 2019 | Change at CER | Developed Markets | Change at CER | Emerging Markets | Change at CER |
Specialty Care franchises | 2,620 | +22.9% | 2,292 | +21.8% | 328 | +30.0% |
Rare Disease | 810 | +8.3% | 640 | +3.0% | 170 | +31.7% |
Multiple Sclerosis | 540 | +2.8% | 522 | +2.9% | 18 | 0.0% |
Oncology | 431 | +14.1% | 302 | +10.2% | 129 | +24.3% |
Immunology | 548 | +166.3% | 541 | +164.1% | 7 | ns |
Rare Blood Disorder | 291 | +7.8%(1) | 287 | +6.2%(2) | 4 | ns |
Primary Care franchises | 3,844 | -8.7%(3) | 2,281 | -15.7%(4) | 1,563 | +3.1% |
Established Rx Products(5) | 2,406 | -10.0%(6) | 1,275 | -18.2%(7) | 1,131 | +1.0% |
Diabetes | 1,290 | -7.0% | 865 | -13.3% | 425 | +8.2% |
Cardiovascular | 148 | -1.4% | 141 | -4.2% | 7 | +133.3% |
Consumer Healthcare | 1,143 | +1.1% | 753 | +1.5% | 390 | +0.3% |
Vaccines | 1,021 | +24.7% | 578 | +15.8% | 443 | +37.7% |
Total net sales | 8,628 | +3.9%(8) | 5,904 | 1.2%(9) | 2,724 | +10.0% |
(1) +2.2 % at CS- see page 5; (2) +0.7% at CS- see page 5; (3) -5.2% at CS; (4)-10.4% at CS; (5) including Generics; (6) -4.5% at CS; (7) -8.9% at CS; (8) +5.8% at CS;(9) +3.8% at CS
(7) See Appendix 10 for definitions of financial indicators.
Net sales by Franchise (€ million) | H1 2019 | Change at CER | Developed Markets | Change at CER | Emerging Markets | Change at CER |
Specialty Care franchises | 4,947 | +26.7%(1) | 4,311 | +25.9% | 636 | +31.8% |
Rare Disease | 1,576 | +9.2% | 1,253 | +3.4% | 323 | +34.3% |
Multiple Sclerosis | 1,069 | +4.3% | 1,029 | +3.7% | 40 | +18.9% |
Oncology | 830 | +11.0% | 575 | +6.3% | 255 | +22.7% |
Immunology | 907 | +173.8% | 897 | +171.5% | 10 | ns |
Rare Blood Disorder | 565 | +65.4%(2) | 557 | +62.9%(3) | 8 | ns |
Primary Care franchises | 7,779 | -8.5%(4) | 4,566 | -16.3%(5) | 3,213 | +4.9% |
Established Rx Products(6) | 4,912 | -9.7%(7) | 2,582 | -18.5%(8) | 2,330 | +2.3% |
Diabetes | 2,584 | -6.9% | 1,714 | -14.6% | 870 | +11.7% |
Cardiovascular | 283 | -1.1% | 270 | -3.4% | 13 | +85.7% |
Consumer Healthcare | 2,399 | +0.8% | 1,586 | -0.9% | 813 | +4.2% |
Vaccines | 1,894 | +22.5% | 1,102 | +10.8% | 792 | +42.2% |
Total net sales | 17,019 | +4.1%(9) | 11,565 | +0.6%(10) | 5,454 | +11.8% |
(1)+20.3 % at CS- Adjusted for Bioverativ and sales of products to SOBI – see page 5; (2) +1.7% at CS- see page 5; (3) +0.2% -see page 5; (4) -5.0% at CS; (5) -11.1% at CS; (6) including Generics; (7)-4.1% at CS; (8) -9.4% at CS; (9) +4.8% at CS- Adjusted for Bioverativ and sales of Bioverativ products to SOBI and European Generics;(10)+1.6% at CS - Adjusted for Bioverativ and sales of Bioverativ products to SOBI and European Generics
Pharmaceuticals
Second-quarter Pharmaceutical sales were up 1.7% to €6,464 million mainly driven by Dupixent® which was partially offset by Diabetes and Established Rx Products including the disposal of the European generics business. First-half sales for Pharmaceuticals increased 2.4% to €12,726 million.
Specialty Care franchises
Immunology franchise
Net sales (€ million) | Q2 2019 | Change at CER | H1 2019 | Change at CER |
Dupixent® | 496 | +168.2% | 825 | +175.3% |
Kevzara® | 52 | +150.0% | 82 | +160.0% |
Total Immunology | 548 | +166.3% | 907 | +173.8% |
Dupixent® (collaboration with Regeneron) generated sales of €496 million in the second quarter (up 168.2%). In the U.S., Dupixent® sales of €403 million (up 152.3%) were driven by continued growth in atopic dermatitis which benefited from launch in the adolescent age group (12 to 17 years of age) in mid-March and from rapid uptake in asthma. In Europe, second-quarter sales were €46 million (up 187.5%). First-half Dupixent® sales increased 175.3% to €825 million. Dupixent® has been launched in 28 countries as of the second quarter of 2019 with 11 more launches in atopic dermatitis and 7 in asthma planned over the remainder of 2019. The U.S. FDA approved Dupixent® for chronic rhinosinusitis with nasal polyposis on June 26, 2019.
Kevzara® (collaboration with Regeneron) sales were €52 million (up 150.0%) in the second quarter, of which €30 million was in the U.S. (up 86.7%) reflecting increased adoption and category share. First-half Kevzara® sales increased 160.0% to €82 million.
Multiple Sclerosis franchise
Net sales (€ million) | Q2 2019 | Change at CER | H1 2019 | Change at CER |
Aubagio® | 466 | +10.6% | 903 | +11.2% |
Lemtrada® | 74 | -28.4% | 166 | -21.7% |
Total Multiple Sclerosis | 540 | +2.8% | 1,069 | +4.3% |
Second-quarter Multiple Sclerosis (MS) sales increased 2.8% to €540 million driven by double-digit growth of Aubagio® in the U.S and Europe, partially offset by lower Lemtrada® sales. First-half MS sales increased 4.3% to €1,069 million.
Second-quarter Aubagio® sales increased 10.6% to €466 million, supported by the U.S. performance (up 10.5% to €336 million) and Europe (up 18.0% to €105 million). First-half Aubagio® sales increased 11.2% to €903 million.
In the second quarter, Lemtrada® sales decreased 28.4% to €74 million due to lower U.S. sales (down 13.0% to €42 million) and European sales (down 51.1% to €22 million), reflecting increased global competition and the update to the EU label. First-half Lemtrada® sales decreased 21.7% to €166 million.
Oncology franchise
Net sales (€ million) | Q2 2019 | Change at CER | H1 2019 | Change at CER |
Jevtana® | 126 | +18.4% | 237 | +13.4% |
Thymoglobulin® | 94 | +23.0% | 175 | +17.4% |
Eloxatin® | 55 | +19.6% | 109 | +20.0% |
Mozobil® | 49 | +9.1% | 93 | +9.8% |
Taxotere® | 42 | 0.0% | 89 |
By: Nasdaq / GlobeNewswire
- 29 Jul 2019
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