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Other Sanofi Franchises that Drove Pharmaceutical Growth in 2Q15

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Other pharmaceutical franchises

Sanofi’s (SNY) other pharmaceutical franchises include the consumer healthcare (or CHC), the generics, and the oncology franchises. Unlike diabetes, these franchises had positive growth during 2Q15.

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The consumer healthcare franchise

The consumer healthcare franchise reported a revenue of 890 million euros in 2Q15, an increase of 1.3% at constant exchange rates over 2Q14. This increase was driven by an increase in sales of drugs like Allegra, Lactacyd, Maalox, and Magne B6. Allegra, an antihistamine, is used to treat fever and other allergies. Sanofi posted an increase of 6.4% to 116 million euros in 2Q15.

Generics

Generic products’ 2Q15 revenues increased by 9.2% at constant exchange rates to 520 million euros. Sanofi and Nichi-Iko Pharmaceuticals launched an authorized generic version of Plavix at the end of 2Q15. Overall sales in Japan and the rest of the world increased by 225% to 27 million euros.

The major portion of the company’s revenues from generic products is from emerging markets, which reported a revenue of 297 million euros, an increase of 6% over 2Q14, followed by Western Europe, which reported revenues of 146 million euros. The US markets achieved 50 million euros in revenues for generics, an increase of 5.3% over 2Q14.

Oncology

The oncology franchise grew 3.6% to 390 million euros in 2Q15, mainly due to the performances of Jevtana, Thymoglobulin, Mozobil, and Zaltrap, which were partially offset by a decline in Taxotere due to the continued impact of generics on Taxotere sales in Japan.

Other companies like Pfizer (PFE), GlaxoSmithKline (GSK), Bristol-Myers Squibb (BMY), and AstraZeneca (AZN) compete with Sanofi on different product mixes like oncology and cardiovascular drugs. Investors can consider ETFs like the Health Care Select Sector SPDR ETF (XLV) or the VanEck Vectors Pharmaceutical ETF (PPH) in order to divest the risk.

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