Sanofi has suffered a minor setback during the first quarter ended March 2015 due to lower diabetes and vaccines sales. Its net profit declined by 5.6 per cent to €1,023 million from €1,084 million in the corresponding quarter of last year. Its net sales moved up by 12.3 per cent to €8,810 million from €7,842 million. With lower net profit, its EPS worked out to slightly lower at €0.78 from €0.82 in the last period. Its R&D expenditure increased by 5.3 per cent to €1,199 million from €1,139 million. It incurred restructuring costs of €353 million as compared to €51 million.
Oliviier Brandicourt, CEO, said, “Sanofi had a good start to 2015. Our businesses provide a solid foundation for our new-product cycle. Sanofi's recent launches along with the ongoing regulatory reviews and planned submissions before year-end will drive future growth. At this important time for the company, my primary focus will be on maximizing the value of this innovative product portfolio and further establishing Sanofi as a leading biopharmaceutical company.”
Its pharmaceutical sales increased by 2.2 per cent to €7,455 million, despite sales of diabetes declined by 3.3 per cent and that of vaccines by 4.6 per cent to €697 million. Genzyme division recorded strong sales growth of 30.9 per cent to €821 million. Similarly, generic sales increased by 10.2 per cent to €478 million due to higher sales in emerging markets led by cough-and-cold products in Eastern Europe and the performance in Latin America. In the US sales of generics were up by 17.9 per cent to €41 million.
The sales of Established Rx products also declined by 1.5 per cent to €2,983 million during the quarter under review. Lantus sales declined by 5 per cent to €1,584 million, reflecting lower sales in the US. In US Lantus sales declined by 13.1 per cent to $1,007 million. However, in emerging markets, Lantus sales increased by 18 per cent to €276 million. Sales of Plavix declined by 9.4 per cent to €483 million basically due to lower sales in Western Europe. However, the sales of Lovenox moved up slightly by 1.2 per cent to €438 million.