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Trends for Sanofi Pasteur: The Human Vaccines Segment

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Sanofi Pasteur

Sanofi Pasteur, the Human Vaccines business of Sanofi (SNY), reported an 8.2% increase at constant exchange rates in its 1Q16 revenues at 625 million euros. This increase was mainly driven by meningitis and pneumonia vaccines, followed by polio, hepatitis B, and influenza vaccines.

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Meningitis and pneumonia vaccines

Meningitis and pneumonia vaccines such as Menactra reported a 27.8% growth in 1Q16 revenues at 122 million euros. Menactra revenues increased by over 29% to 111 million euros. This increase was due to favorable order phasing for the Centers for Disease Control and Prevention in the US markets.

Polio, pertussis, and Hib vaccines

This franchise includes vaccines such as Pentacel, Pentaxim, and Imovax. This franchise reported a sales increase of 6.0% at constant exchange rates to 288 million euros. This was due to increased sales of Pentaxim in China and Hexaxim in the Middle East and Africa.

This was offset by lower sales of Pentacel in the US markets following manufacturing delays. The company expects improvements in the supply of Pentacel in the second half of 2016.

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Influenza vaccines

Influenza vaccines reported a growth of 4.5% at constant exchange rates in 1Q16, bringing its revenues to 20 million euros. This vaccine group includes Vaxigrip and Fluzone.

Other Products

The company’s Other Products segment include adult booster vaccines, travel, other endemic vaccines, and other vaccines. Adult booster vaccines, including Adacel, reported revenues of 80 million euros in 1Q16, a decrease of 15.8% over 1Q15 due to Adacel sales in the US.

Travel and other endemic vaccines reported 4.9% growth at 83 million euros while other vaccines reported a decline of 31.6% at 13 million euros in 1Q16. All these growth rates are at constant exchange rates.

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VaxServe

VaxServe is the US-based entity of Sanofi Pasteur for the distribution of vaccines and products from third-party manufacturers. The sales from VaxServe were reported under the Vaccines segment through December 2015. Since January 1, 2016, VaxServe revenues are now reported under Other revenues.

Sanofi Pasteur MSD

Sanofi Pasteur MSD is a joint venture of Sanofi Pasteur with Merck and Co. (MRK) in Europe. Sanofi Pasteur MSD sales increased by 18% on a reported basis at 165 million euros. This amount is not consolidated in the above figures.

Investors can consider several ETFs that provide broad-based exposure to this industry. The First Trust Value Line Dividend ETF (FVD) holds 0.5% of its total assets in Sanofi, and the VanEck Vectors Pharmaceutical ETF (PPH) holds 5.4% of its total assets in Sanofi. The VanEck Vectors Pharmaceutical ETF also holds 5.5% of its total assets in Bristol-Myers Squibb (BMY), 5.3% in Johnson & Johnson (JNJ), and 5.1% in Novo Nordisk (NVO).

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