Sanofi 2011 results benefit from Genzyme acquisition
Faces generic competition in 2012
In common with its competitors, Sanofi reported increased revenue for 2011, but saw a dip in profits.
The French drugmaker reported revenue of €33.4bn, an increase of 5.3% at constant exchange rates, while profit fell by 2.7% to €8.8bn. Excluding Genzyme and A/H1N1, sales decreased by 1.2%. Sanofi also lost €2.2bn of sales to generic competition.
In spite of these setbacks, Sanofi’s chief executive, Christopher Viehbacher, said 2011 was ‘a key year in transforming Sanofi’.
‘We successfully acquired and integrated Genzyme, our growth platforms recorded double-digit growth, we delivered cost savings as planned and submitted filings to regulatory authorities for five new products,’ he said.
Five new products were submitted for regulatory approval and Genzyme’s Framingham plant recently received US FDA and EMA approvals for the production of Fabrazyme.
The loss of exclusivity in the US for blood thinner Plavix and Avapro, a drug used to treat high blood pressure, is expected to reduce net income by €1.4bn in 2012.
‘Beyond the remaining patent cliff in 2012, the robust performance of our diversified growth platforms, the reduced exposure to future patent expiries and progress on r&d, position Sanofi for a period of sustainable growth,’ added Viehbacher.
Flagship pharmaceutical products in 2011 were cancer drugs Elotaxin (+161%) and Jevtana (+135.4%) and diabetes drug Lantus (+15%), which were offset by a dip in sales owing to generic competition for anticoagulant Lovenox, insomnia treatment Ambien CR and cancer drug Taxotere in the US, Plavix and Taxotere in the EU, and the impact of EU austerity measures. Total pharmaceutical sales were €28bn, an increase of 6.7%.
Emerging markets delivered sales of €10.1bn in 2011, an increase of 10.4% (excluding Genzyme and A/H1N1 vaccines sales of €361m booked in 2010). Full-year sales in BRIC (Brazil, Russia, India, China) countries were €3.5bn.
Asia and Latin America continued to deliver strong double-digit sales growth of 15.7% and 18.1% respectively (excluding Genzyme and A/H1N1 sales).
Full-year sales in Eastern Europe and Turkey were slightly down to €2.7m. Price cuts and generic competition for Taxotere had a particular impact in Turkey.
Full-year 2011 sales in the US were €9.9bn, up 6.8 %.
In Western Europe sales fell 4% to €9.1bn owing to generic competition for Taxotere and Plavix, the transfer of the Copaxone business, a multiple sclerosis treatment, to Teva in certain countries, as well as the impact of austerity measures.
Full-year 2011 sales in Japan were €2.9bn, up 20.2%, supported by Plavix (up 22.9% to €671m), allergy drug Allegra (up 22.2% to €465m) and Hib vaccine sales.