PARIS, Nov. 3, 2011 /PRNewswire/ --
(Logo: http://photos.prnewswire.com/prnh/20110616/NY20158LOGO )
Q3 2011 | Change on a reported basis | Change at constant exchange rates | 9 months 2011 | Change on a reported basis | Change at constant exchange rates | ||
Net sales | euro 8,753m | +5.0% | +10.1% | euro 24,881m | +1.4% | +4.1% | |
Business net income(1) | euro 2,398m | -3.0% | +4.1% | euro 6,718m | -8.9% | -6.3% | |
Business EPS(1) | euro 1.79 | -5.3% | +1.6% | euro 5.09 | -9.9% | -7.3% | |
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 2011 is provided in Appendix 7. A reconciliation of business net income to consolidated net income is provided in Appendix 6. Consolidated net income for the first 9 months of 2011 was euro 4,254 million, compared to euro 5,030 million for the first 9 months of 2010. Consolidated EPS for the first 9 months of 2011 was euro 3.23. versus euro 3.85 for the first 9 months of 2010.
Commenting on the Group’s performance in Q3 2011, Sanofi Chief Executive Officer, Christopher A. Viehbacher said, “The return to growth in sales and earnings in the third quarter reflects an important milestone as the company progressively puts the patent cliff behind it. The integration of Genzyme is progressing well. Our growth platforms(3) again achieved double digit growth and more than compensated for generic erosion. We continue to make strong progress in R&D with the submission of five new products and also in the tight control of our costs.”
Q3 2011 Performance
- Total sales(4) grew 10.1%(5) to euro 8,753 million. Excluding Genzyme, sales were stable despite euro 471 million of sales lost due to generic competition vs. Q3 2010.
- Growth platforms grew by 11.1% (excluding A/H1N1 sales) led by strong performances in Diabetes, Vaccines and Consumer Health Care. Growth platforms and Genzyme accounted for 68.5% of total sales.
- Diabetes sales increased 12.4% driven by a strong performance in the U.S. and in Emerging Markets(6) where Lantus® recorded sales growth of 14.6% and 23.4%, respectively.
- Vaccines grew 16.7% reflecting solid demand for seasonal flu vaccines in the U.S. coupled with an early shipment.
- Genzyme sales were euro 768 million, up 6.9%(7).
- Sales in Emerging Markets(6) were euro 2,565 million, an increase of 6.8% (or 12.0% including Genzyme). Sales in BRIC countries were up 20.2% (or 24.2% including Genzyme).
- Consumer Health Care sales were euro 665 million (+20.3%), supported by a successful Allegra® OTC launch in the U.S. (euro 43 million).
- Merial sales were euro 470 million, a decrease of 5.2% reflecting the temporary generic competition of Frontline® Plus in the U.S.
- Business EPS(1) was up 1.6% at euro 1.79 at CER despite the impact of several exclusivity losses.
Outlook
- Five new products were recently submitted: Lyxumia® (lixisenatide) in the EU, Aubagio (teriflunomide) and Zaltrap (aflibercept) in the U.S.; Visamerin®/Mulsevo® (semuloparin) in the U.S. and EU; Kynamro (mipomersen) in the EU.
- The Group continues to expect 2011 business EPS(1) to be 2% to 5% lower than 2010 business EPS(8) at CER, barring major unforeseen adverse events.
(1) See Appendix 8 for definitions of financial indicators; (2) At Constant Exchange Rate; (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) Q3 2010 includes consolidated Merial sales (euro 518 million); (6) See definition on page 8; (7) on a constant structure basis and at constant exchange rates; (8) euro 7.06
2011 third quarter and 9-month net sales
Unless otherwise indicated, all sales growth figures in this press release are stated at constant exchange rates(1).
Net sales in the third quarter of 2011 were euro 8,753 million, an increase of 5.0% on a reported basis. Exchange rate movements had a negative effect of 5.1 percentage points, mainly due to a less favorable euro/U.S. dollar parity. Various currencies from Emerging Markets (notably the Venezuelan Bolivar and Turkish Lira) also had an unfavorable impact. At constant exchange rates, and including changes in structure (primarily the consolidation of Genzyme from April 1st), net sales increased by 10.1%.
In the first 9 months of 2011, net sales were euro 24,881 million, up 1.4% on a reported basis. Exchange rate movements had an unfavorable effect of 2.7 percentage points. The impact of the depreciation of the U.S. dollar, Venezuelan Bolivar and Turkish Lira against the Euro was reduced by the favorable effect of the Japanese Yen and Australian dollar. At constant exchange rates, and accounting for changes in structure (primarily the consolidation of Genzyme from April 1st), net sales increased by 4.1%.
Growth Platforms (see Appendix 4)
Third-quarter sales of the Group’s growth platforms grew by 10.4% or 11.1% excluding A/H1N1 vaccines sales. Including Genzyme, the Group’s growth platforms accounted for 68.5% of total consolidated sales, which is up from 60.2% in the third quarter of 2010. In the first 9 months, the growth platforms and Genzyme comprised 64.5% of total consolidated sales compared with 56.4% over the same period of 2010. Year-to-date sales growth of growth platforms was 11.9% excluding A/H1N1 vaccines sales.
Pharmaceuticals
Pharmaceuticals net sales reached euro 6,940 million (up 10.0%) in the third quarter, which reflects the positive contribution (euro 768 million) from Genzyme (consolidated from April 1st, 2011) as well as generic competition to Lovenox®, Ambien® CR and Taxotere® in the U.S., Plavix® and Taxotere® in the EU and the impact of U.S. healthcare reform and EU austerity measures. Year-to-date 2011 net sales were euro 20,670 million, an increase of 5.5%.
