uploads/2016/08/Chart-07-5-1.jpg

Inside the Performance of Sanofi’s Human Vaccines Segment in 2Q16

By

Updated

Sanofi Pasteur

Sanofi Pasteur, the Human Vaccines segment of Sanofi (SNY), reported a 6.3% revenue increase at constant exchange rates to 797 million euros (about $899.9 million) for 2Q16. This increase was mainly driven by polio and hepatitis B vaccines, travel vaccines, and other endemic vaccines.

Article continues below advertisement

Polio, pertussis, and Hib vaccines

This franchise includes Pentacel, Pentaxim, and Imovax, among other vaccines. The segment reported a sales increase of 28.6% at constant exchange rates to 339 million euros (about $382.8 million), due to increased sales of Pentaxim and Hexaxim in the Middle East, Africa, and other emerging markets and of Pentacel in US markets. The company expects improvements in the supply of Pentacel in the second half of 2016.

Meningitis and pneumonia vaccines

For 2Q16, Meningitis and pneumonia vaccines including Menactra reported a 1.3% revenue decline at constant exchange rates at 139 million euros (about $157 million). Menactra revenues decreased by ~3% to 126 million euros (about $142.3 million) due to favorable order phasing for the Center for Disease Control and Prevention in the US.

Article continues below advertisement

Influenza vaccines

Influenza vaccines reported a decline of over 10% at constant exchange rates in 2Q16 revenues to 96 million euros. This franchise includes Vaxigrip and Fluzone vaccines.

Other products

Other products include adult booster vaccines, travel and endemic vaccines, and other vaccines. Adult booster vaccines, including Adacel, reported revenues of 104 million euros (about $117.4 million) in 2Q16—a decrease of 9% over 2Q15 due to Adacel’s sales in the US.

Travel and other endemic vaccines reported a 7.2% growth to 101 million euros (about $114.1 million), while other vaccines reported a decline of 37% to 17 million euros (about $19.2 million) in 2Q16. All these growth rates are at constant exchange rates.

Article continues below advertisement

VaxServe

VaxServe is the US-based entity of Sanofi Pasteur for the distribution of vaccines and products from third-party manufacturers. Sales from VaxServe were reported under the company’s 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 & Company (MRK) in Europe. Sanofi Pasteur MSD’s sales increased by 9% on reported basis to 175 million euros (about $197.6 million). But this amount is not consolidated in the above figures.

Notably, to divest risk, investors can always consider ETFs like the First Trust Value Line Dividend ETF (FVD), which has 0.5% of its total assets in Sanofi, 0.6% in AstraZeneca (AZN), 0.5% in Teva Pharmaceuticals (TEVA), and 0.5% in GlaxoSmithKline (GSK).

Now let’s discuss the performance of Sanofi’s Merial segment in 2Q16.

Advertisement

More From Market Realist