Sanofi: net profit and sales up in 2015 – L’Express

The net income increased by 7.7% due to a favorable currency effect while at constant exchange rates, it was down 0.9%. The turnover in 2015 stood at 37 billion euros, slightly below analysts’ expectations (+ 9.7% or + 2.2% at constant exchange rates), according to a statement.

Sales in the diabetes business were down 6.8% to 7.58 billion euros in 2015 at constant exchange rates, a figure in line with forecasts of Sanofi.

In late October, the group indicated anticipate a decline in sales of this division of 4 to 8% per year at constant exchange rates until 2018, due to the decline of its flagship product, the Lantus insulin glargine, whose prices are under pressure, in particular subject to increasing competition from biosimilars.

Conversely, the specialist in rare diseases Genzyme, Sanofi acquired in 2011, remained a pillar of the group’s growth last year, with nearly 3.7 billion euros sales (+ 29.5% at constant exchange rates), thanks to its treatment against multiple sclerosis.

The vaccines business also performed well, as the generic, activity in emerging markets driven by Asia and animal health.

However, Sanofi plans to sell its subsidiary Merial veterinarian at the German Boehringer Ingelheim, and receive in return the activity of non-prescription drugs thereof, with the ambition to become world number one this sector.

In the fourth quarter, Sanofi’s revenue rose 2.3% to nearly 9.28 billion euros, but fell by 1.6% at constant exchange rates, mainly due to a 12.6% slide in sales in the diabetes, a negative impact of € 122 million related to the voluntary recall of anti-allergic devices in North America, and increased generic competition in Japan for the major anticoagulant Sanofi Plavix.

Quarterly net income was $ 1.7 billion (-6.5% or -13.5% at constant exchange rates).

In 2016, the group maintained its forecast of earnings per share (EPS) activities “ stable overall ” at constant exchange rates, “ except unexpected adverse major events “, the statement said. In 2015, this performance index was stable at constant exchange rates, as expected, to 5.64 euros.

The group will offer its shareholders a dividend of 2.93 euros per share for the year (against 2.85 euros for 2014) or the “ 22th consecutive year dividend increase , “the statement said.

In full reorganization of its activities, Sanofi launched by year-end a comprehensive plan of savings of 1.5 billion euros over three years, including through the net reduction of approximately 600 positions in France.

Other positions will be eliminated around the world over the period. “ We will have an overall figure of staff reductions across the group by this summer ” said Group CEO Olivier Brandicourt during a Tuesday conference call.

In addition, Sanofi “ always exploring options ” to its generics business in Europe, added Mr Brandicourt, recalling that the group wanted to settle the issue by November 2016 .