French drugmaker Sanofi (SNY, SNYNF.PK) on Friday reported a higher profit for the first quarter as revenues increased benefiting from the acquisition of U.S. biotech firm Genzyme and higher sales from diabetes drug Lantus. The company also confirmed that its full-year earnings will decline 12 to 15 percent.
Sanofi's CEO Christopher Viehbacher said, "During the first quarter, our Business EPS grew by 7.2%. This strong performance was driven by Genzyme, our growth platforms, and cost savings. This quarter also reflects the production recovery of Genzyme with the first shipment of Fabrazyme produced in Framingham in March."
Diabetes had a strong revenue quarter recording a double-digit growth of 14.4 percent, driven by the performance of Lantus.
In the first quarter, net income attributable to shareholders increased to 1.83 billion euros ($2.41 billion) or 1.38 euros per share from 1.22 billion euros or 0.93 euros per share reported a year ago.
The latest results included an 833 million euros amortization charge against intangible assets arising on the application of purchase accounting to acquired companies as well as 87 million euros of restructuring costs, among others.
Business earnings per share, a non-GAAP measure, increased to 1.85 euros from 1.66 euros.
Net sales increased 9.4 percent to 8.51 billion euros from 7.78 billion euros in the prior year. At constant exchange rates, and adjusting for changes in the scope of consolidation, primarily the consolidation of Genzyme, net sales slipped 0.6 percent.
Sales of the growth platforms, including "new Genzyme", increased about 15 percent to 5.38 billion euros. The growth was 5.7 percent with Genzyme pro forma. The growth platforms include Emerging Markets, Diabetes, Vaccines, Consumer Health Care and Animal Health and New Products.
Lantus sales increased 17.2 percent to 1.12 billion euros, while oncology product Eloxatin's sales surged over 96 percent to 384 million euros. Product sales comparisons are at constant currency rates.
Blood thinner Plavix, which will lose U.S. exclusivity in May, reported sales of 505 million euros, a marginal decline of 0.2 percent from last year.
The New Genzyme, consisting of Rare Diseases products and future Multiple Sclerosis products Aubagio and Lemtrada, generated 400 million euros, up 13.7 percent from last year's non consolidated sales.
Within this business, sales of Fabry disease drug Fabrazyme, which had some manufacturing issues, climbed 50 percent to 47 million euros. Myozyme/ Lumizyme, for Pompe disease, brought in 112 million euros, up 17 percent from last year.
Consumer Health Care sales climbed 11.4 percent to 805 million euros, led by dynamic organic growth as well as acquisitions.
Sales of generics grew 6.5 percent to 439 million euros, driven by the U.S. performance which benefited from the recent launch of the authorized generic of Lovenox.
Geographically, at constant currency rates, sales in the U.S. climbed over 15 percent and emerging market sales improved about 10 percent, while Western Europe saw a 1.5 percent drop.
Looking ahead, the company confirmed its full year business earnings outlook of a year-over-year decline of 12 to 15 percent at constant exchange rates. The outlook takes into account the loss of Plavix and Avapro exclusivity in the U.S., the performance of growth platforms, contribution from Genzyme and cost control as well as other generic competition.
The stock closed in Paris lower by 0.29 percent at 56.78 euros on a volume of 2.84 million shares.
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