Sanofi has posted lower sales and profit during the second quarter ended June 2016 on account of negative impact of exchange rate movements and problems in Venezuela. The company's net sales declined by 5.1 per cent to €8,143 million from €8,577 million in the corresponding quarter of last year. Its net profit declined by 11.7 per cent to €1,173 million from €1,329 million. EPS declined to €0.76 from €0.96 in the last period.

Olivier Brandicourt, CEO, commented, “Our second quarter financial performance was in-line with expectations and reflected anticipated headwinds. Sanofi Genzyme grew 20 per cent and Sanofi Pasteur performed well despite a delay in Dengvaxia uptake. Recent highlights included the signing of the CHC asset swap, the approval of Praluent in several countries and positive Phase III CHRONOS data for dupilumab. Following our first half performance, we confirm our broadly stable 2016 business EPS guidance at CER.”

Its pharmaceutical sales declined by 1.7 per cent to €7346 million. However sales of vaccines and animal health sales improved by 6.3 per cent and 9.1 per cent respectively to €797 million and €725 million. The sales of Genzyme increased by 20.1 per cent to €1,245 million. The sales of diabetes and cardiovascular segment declined 3.5 per cent to €1,603 million. The sales of Lantus declined sharply by 14.2 per cent to €1,215 million. The sales of established products declined by 9.7 per cent to €2,617 million as plavix sales declined by 25.7 per cent to €392 million and that of aprovel by 16.1 per cent to €175 million. Though its sales in Europe increased by 3.3 per cent to €2,360 million, its US sales improved only by 1.3 per cent to €3,118 million.

For the first half ended June 2016, Sanofi's net sales declined by 4.2 per cent to €15,926 million from €16,629 million in the corresponding period of last year. Its net profit declined by 4.1 per cent to €2,245 million from €2,325 million. Its pharmaceutical sales in first half declined by 1.5 per cent to €14,504 million. The sales of Genzyme (specialty care) improved by 20.3 per cent to €2,414 million. However, the sales of diabetes & cardiovascular declined by 4.6 per cent to €3,102 million and that of general medicines & emerging markets declined by 4.9 per cent to €8,988 million. Its US sales improved by 1.4 per cent to €6,084 million and that in Europe by 2.5 per cent to €4,732 million. The sales in emerging market improved by 1.7 per cent to €4,907 million in the first half ended June 2016.

At the end of July 2016, the R&D pipeline contained 44 pharmaceutical new molecular entities (excluding life cycle management) and vaccine candidates in clinical development of which 14 are in phase III or have been submitted to the regulatory authorities for approval.

The company expects 2016 business EPS to be broadly stable at CER, barring unforeseen major adverse events.