Sanofi, a French pharma major, has suffered heavy setback during the fourth quarter ended December 2012 on account of generic competition, loss of exclusivity in US for several drugs and EU austerity measures. The company's net income declined sharply by 70.6 per cent to €438 million from €1,490 million in the similar period of last year. Its operating income before interest and tax also declined by 57.6 per cent to €400 million from €943 million. Its revenues remained almost flat during the quarter to €8,526 million as against €8,508 million. Earnings per share nosedived to €0.31 from €1.08 in the last period.
The sales of pharmaceutical business declined by 3 per cent to €7,004 million from €7,220 million in the same quarter of last year. However, sales of vaccines improved by 24.2 per cent to €1,016 million from €818 million. The sales of Plavix declined by 6.2 per cent to €503 million during the fourth quarter ended December 2012. Similarly sales of Lovenox declined by 13.1 per cent to €441 million, Aprovel by 34.1 per cent to €212 million and Eloxatin by 80 per cent to €68 million.
For the full year ended December 2012, Sanofi's sales increased by 4.7 per cent to €34,947 million from €33,389 million in the previous year. Its net income declined by 13.5 per cent to €5,136 million from $5,934 million. R&D expenditure was marginally higher at €4,922 million as compared to €4,811 million.
Christopher A Viehbacher, CEO, said, “2012 was a turning point for Sanofi with the loss of exclusivity in the US for several significant legacy drugs. Despite the effect of the patent cliff, Sanofi was able to grow sales and mitigate the impact on Business EPS. At the same time, Sanofi was able to obtain nine significant regulatory approvals and submit six new files with regulatory agencies. Although the financial results in the first half well experience a residual effect from patent expirations, we expect to resume growth in the second half of 2013. This will be driven primarily by continued strong performance form our growth platforms which now represent more than 70 per cent of our sales and rose nearly 10 per cent in 2012. We are on track to meet our 2012-15 objectives for sustainable growth.”
The pharmaceutical sales for the full year ended December 2012 improved by 3.5 per cent to €28,871 million from €27,890 million. The sales of Lantus went up by 19.3 per cent to €4,960 million and its sales of diabetes product moved up by 16.7 per cent to €5,782 million. However, the sales of Oncology segment declined by 14.3 per cent to €2,394 million as the sales of Taxotere and Eloxatin declined sharply by 41.9 per cent and 17.3 per cent to €563 million and 956 million respectively. The sales of Lovenox declined by 12 per cent to €1,893 million and that of Plavix by 4.6 per cent to €2,066 million. Similarly sales of Aprovel and Allegra declined by 13.3 per cent and 9.5 per cent respectively.
Sanofi's vaccines sales increased by 12.3 per cent to €3,897 million from €3,469 million and that of animal health moved up by 7.3 per cent to €2,179 million from €2,030 million.