PARIS, April 27, 2012 /PRNewswire/ --
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Change on a
Change at constant
Business net income(1)
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 Q1 2012 is provided in Appendix 7. A reconciliation of business net income to consolidated net income is provided in Appendix 6. Consolidated net income for Q1 2012 was euro 1,827 million, compared to euro 1,218 million for Q1 2011. Consolidated EPS for Q1 2012 was euro 1.38 versus euro 0.93 for Q1 2011.
Commenting on the Group's performance in Q1 2012, Sanofi Chief Executive Officer, Christopher A. Viehbacher said, "During the first quarter, our Business EPS grew by 7.2%(2). This strong performance was driven by Genzyme, our growth platforms(3), and cost savings. This quarter also reflects the production recovery of Genzyme with the first shipment of Fabrazyme® produced in Framingham in March. In addition, we have submitted three new products to regulatory authorities, and released impressive clinical results for our anti-PCSK9 agent and for Lemtrada at recent medical congresses. Although as expected, Plavix® will lose exclusivity in May in the U.S., the strong underlying performance of the business is consistent with our medium term growth outlook".
Q1 2012 Performance
- Total sales(4)reached euro 8,511 million, including Genzyme consolidated sales (euro 841 million), an increase of 7.0% versus Q1 2011.
- Sales of growth platforms which now include "new Genzyme(5)" were euro 5,381 million and accounted for 63.2% of total sales, up from 59.2% in Q1 2011.
- Sales in Emerging Markets(6) were euro 2,624 million, up 9.9%.
- Diabetes recorded another quarter of strong double digit growth (up 14.4%)driven by the performance of Lantus® (up 17.2% to euro 1,118 million).
- Consumer Health Care achieved record sales of euro 805 million, up 11.4%.
- "New Genzyme" increased sales by 13.7%(7) to euro 400 million. In March, Genzyme began shipping Fabrazyme® produced at its newly approved plant in Framingham.
- Vaccines sales were euro 617 million (down 0.2%) impacted by the delayed timing of supply of Flu vaccines in the Southern Hemisphere.
- Business EPS(1) of euro 1.85 was up 7.2% at CER.
- Three filings for new products were submitted to regulatory authorities in Q1 2012 : Aubagio in the EU, Kynamro and Zaltrap® in the U.S.
- The performance of this first quarter is in line with the full year guidance announced on February 8, 2012. Taking into account the loss of Plavix® and Avapro® exclusivity in the U.S., the performance of growth platforms, contribution from Genzyme and cost control as well as other generic competition, 2012 business EPS(1) is expected to be 12% to 15% lower at CER than 2011(8), barring unforeseen adverse events.
(1) See Appendix 8 for definitions of financial indicators; (2) At constant exchange rates; (3) See Appendix 4; (4) Growth in net sales is expressed at constant exchange rates (CER) unless otherwise indicated (see Appendix 8 for a definition); (5) "New Genzyme" consists of Rare Diseases products and future Multiple Sclerosis products; (6) See definition in the section, "Net sales by geographic region"; (7) with "new Genzyme" at constant exchange rates; (8) euro 6.65
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2012 first-quarter net sales
Unless otherwise indicated, all sales growth figures in this press release are stated at constant exchange rates(1).
In the first quarter of 2012, Sanofi generated sales of euro 8,511 million, up 9.4% on a reported basis. Exchange rate movements had a positive effect of 2.4 percentage points reflecting the appreciation of the U.S. dollar, the Japanese Yen and the Chinese Yuan against the Euro. At constant exchange rates, and adjusting for changes in the scope of consolidation (primarily the consolidation of Genzyme), net sales decreased by 0.6%.
Growth Platforms (see Appendix 4)
Sales of the Group's growth platforms (including "new Genzyme") were euro 5,381 million, an increase of 14.8%, or 5.7% with Genzyme pro forma. Diabetes and Consumer Health Care grew at a double-digit pace in the quarter. Sales of "new Genzyme", which were not consolidated in the first quarter of 2011, also increased at a double digit rate. The Group's growth platforms accounted for 63.2% of total consolidated sales in the first quarter of 2012, up from 59.2% in the first quarter of 2011.
First-quarter sales for the Pharmaceuticals business were euro 7,316 million up 8.8%, which reflects the positive contribution from Genzyme (consolidated from April 1, 2011) as well as the negative effect of generic competition on Lovenox®, Ambien® CR and Taxotere® in the U.S.; Plavix® and Taxotere® in the EU, and the impact of EU austerity measures.