SANOFI - 3Q Results: Patent Expiry Impacting Growth, but Strong fundamentals Lends Stability
SAN today announced 3Q results, sales grew 10.3% CER, while if we exclude Genzyme, sales were more or less flat. The company reiterated its guidance of 2-5% EPS decline for the full year. Vaccines, diabetes sales and Consumer health business continue to be the key growth drivers for Sanofi. Vaccine business driven by its influenza portfolio grew 17%, diabetes sales increased 12.4%, while the OTC business aided by Allegra OTC (€43m) grew by 20.3%. Eloxatin sales have returned to the same levels before generic entry happened and helped the results. Genzyme grew by a lackluster 7% as Cerezyme sales were impacted by a temporary decrease in production yields and changes in product release procedures that has extended the overall time it takes to release Cerezyme. In case of Plavix patent infringement, the US Court of Appeals upheld the damages award granted to Sanofi and BMS in the amount of $442m which may be realized in 4Q. Recently launched products Multaq and Jevtana brought €111m in this quarter.
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