06.02.2014 07:30:00 CET

Sanofi Returns to Growth in Q4 2013

Sanofi Returns to Growth in Q4 2013

Paris, France - February 6, 2014 - Sanofi (EURONEXT: SAN and NYSE: SNY)

Q4 2013 Change (reported) Change (CER) 2013 Change (reported) Change (CER)
Net sales 8,457m -0.8% +6.5% 32,951m -5.7% -0.5%
Business net income(1) 1,810m +16.8% +30.5% 6,687m -17.5% -9.6%
Business EPS(1) 1.37 +17.1% +30.8% 5.05 -17.8% -9.8%

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 2013 is provided in Appendix 4 and a reconciliation of business net income to consolidated net income in Appendix 3. Consolidated net income for 2013 was 3,717 million, compared to 4,889 million(2) for 2012. Consolidated EPS for 2013 was 2.81 versus 3.71(2) for 2012.

Commenting on the Group's performance in Q4 2013, Sanofi Chief Executive Officer, Christopher A. Viehbacher said,

"Sanofi's growth profile emerged in Q4 2013 with total sales growing 6.5% at CER and growth platforms(3), which represented 72.9% of sales, increasing 10.0% at CER.  Furthermore, new product launches are underway or imminent in most of Sanofi's core businesses and several high potential R&D projects progressed in 2013, including alirocumab, sarilumab and U300."

Q4 2013 and 2013 Performance
   Sales increased 6.5%(4) in Q4 2013. In 2013, total sales were stable (-0.5%) at 32,951 million.

   Growth platforms(3) increased 10.0% in Q4 2013. In 2013, sales from growth platforms reached 23,905 million (+6.6%) and accounted for 72.5% of total sales.

   In Q4 2013, Emerging Markets(5) sales recorded double digit growth (+10.4%). In 2013, Emerging Markets sales were 10,957 million, an increase of 4.4% (+7.1% excluding Brazil generics).

   Diabetes sales were up 19.0% in Q4 2013. Diabetes recorded strong double digit growth (+18.7%) to 6,568 million in 2013 driven by the performance of Lantus (+20.0% to 5,715 million).

   Vaccines sales were stable in Q4 2013 as supply improved for Pentacel and Adacel in the U.S. from mid-October. In 2013, Vaccines sales were stable at 3,716 million as record flu vaccines sales offset U.S. supply constraints on Pentacel and Adacel.

   CHC sales were up 6.1% in Q4 2013. Sales of Consumer Healthcare exceeded 3 billion in 2013, an increase of +5.2%.

   Genzyme recorded a robust performance in Q4 2013 with sales up 31.4%. In 2013, Genzyme recorded sales of
2,142 million, up 25.9% driven by 16.6% growth of the rare disease franchise and by Aubagio (166 million).

   Animal Health sales were down 6.3% in Q4 2013. Sales of Animal Health decreased 5.3% to 1,985 million in 2013 reflecting increased competition to Frontline. Broadline(TM), a unique product in the fight against internal and external parasites for cats, was approved in the EU in December.

   In Q4 2013, business EPS(1) was 1.37 (+ 30.8% at CER). 2013 business EPS was 5.05 (-9.8% at CER).

   Board proposes dividend of 2.80.
R&D Update
   In Q4 2013, positive top line results in Phase III trials for U300 (EDITION III, IV and EDITION JP I) and for sarilumab (SARIL-RA-MOBILITY) were announced. The Phase III program for the Fixed-Ratio combination of Lantus/Lyxumia was recently initiated.

   The FDA accepted the New Drug Application of Cerdelga(TM) (eliglustat) for review and granted it a Priority Review designation.
2014 Guidance
   The continued performance of growth platforms, investments in new product launches and in late-stage pipeline should lead to a 2014 business EPS(1) growth between 4% and 7% at CER, barring major unforeseen adverse events.

 

(1) See Appendix 8 for definitions of financial indicators; (2) Including impact of transition to IAS 19R; (3) See page 2; (4) Growth in net sales is expressed at constant exchange rates (CER) unless otherwise indicated (see Appendix 8 for a definition); (5) See definition on page 7;

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