Q1 2018 Change Change at CER IFRS net sales reported EUR7,898m -8.7% -0.4% IFRS net income reported EUR1,016m -82.2%(2) - IFRS EPS reported EUR0.81 -82.0%(2) - ----------------- ------- -------- --- Business net income(1) EUR1,598m -10.7% +0.4% Business EPS(1) EUR1.28 -9.9% +1.4% -------------- ------- ---- ----
Sanofi Chief Executive Officer, Olivier Brandicourt, commented:
"In the first quarter, the performance of our global operations, coupled with disciplined expense management, allowed us to manage the impact of the losses of exclusivity for Lantus® and sevelamer in the U.S. Furthermore, with the consolidation of Bioverativ and the acquisition of Ablynx(9), we have established the foundation for a global Rare Blood Disorder franchise which will further enhance our leadership in Specialty Care. Importantly, we continue to execute on our business priorities and position the Company for a new period of growth which is expected to begin in the second half of 2018."
First-quarter 2018 reflected strong Specialty Care sales offset by U.S. Lantus® and sevelamer exclusivity losses
Net sales were €7,898 million, down 8.7% on a reported basis, down 0.4%(3) at CER and down 1.1% at CS/CER(4).
Sanofi Genzyme sales grew strongly, up 16.2%(5), driven by contribution from the new immunology franchise.
Vaccines sales (-0.9%) reflected strong performance in EU, offset by expected Pentaxim® supply constraint in China.
CHC sales grew 2.0% supported by double-digit growth in Emerging Markets(6).
Diabetes and Cardiovascular GBU sales down 15.7%; global Diabetes franchise sales declined 10.0%.
Emerging Markets sales(6) increased 8.3%, driven by double-digit growth in China and Latin America.
2018 guidance confirmed
First-quarter 2018 business EPS(1) increased 1.4% at CER to €1.28.
First-quarter 2018 IFRS EPS was €0.81 (-82.0%) due to a gain on disposal of the Animal Health business in 2017.
Sanofi continues to expect 2018 Business EPS to grow between 2% and 5% at CER(7) barring unforeseen major adverse events. Applying the average April 2018 exchange rates, the currency impact on 2018 Business EPS is estimated to be around -7%.
Announcement of a €1.5bn share buyback program(8) expected to be completed in mid-2019
Sanofi strengthens leadership in Specialty Care through the addition of a Rare Blood Disorder franchise
Sanofi completed the acquisition of Bioverativ and consolidated its financial results from March 9.
First patient dosed with fitusiran, a novel RNAi therapeutic for hemophilia, in phase 3 ATLAS program.
Ablynx acquisition(9) will add caplacizumab for aTTP(10) (submitted in EU) and innovative Nanobody® platform.
Sustaining innovation in R&D
Praluent® significantly reduced the risk of cardiovascular events in high risk patients in the ODYSSEY OUTCOMES study and was associated with a lower death rate.
Dupixent® supplemental BLA filed in the U.S., Japan and EU for moderate-to-severe asthma in adults and adolescents.
Cemiplimab filed in EU for metastatic cutaneous squamous cell carcinoma.
Sotagliflozin submitted in the U.S. and EU for type 1 diabetes.
(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 8 for definitions). The consolidated income statement for Q1 2018 is provided in Appendix 3 and a reconciliation of reported IFRS net income to business net income is set forth in Appendix 4; (2) Excluding Animal Health gain on disposal, IFRS net income was down 19.9% and IFRS EPS was down 19.8%; (3) Changes in net sales are expressed at constant exchange rates (CER) unless otherwise indicated (see Appendix 8); (4) CS: Adjusted for Bioverativ acquisition; (5) Adjusted for Bioverativ acquisition: + 11.2% at CER/CS; (6) See definition page 7; (7) 2017 business EPS was €5.52; (8) Subject to the renewal of the authorization to repurchase Sanofi's own shares at the May 2, 2018 shareholders' meeting; (9) Subject to the completion of the acquisition; (10) Acquired thrombotic thrombocytopenic pu...
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