How Sanofi’s Various Franchises Performed in 2Q16



Sanofi’s franchise wise sales

Sanofi (SNY) operates in the following franchises:

  • Specialty Care
  • Diabetes & Cardiovascular
  • Established Rx Products
  • Consumer Healthcare
  • Generics
  • Vaccines
  • Animal Health

After its asset swap deal with Boehringer Ingelheim, the company will discontinue its Animal Health business.

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Established Rx Products

Established Rx is the company’s largest franchise, with a share of 30% of the total sales in 2Q16. The sales from established products stood at 2.6 billion euros, or about $2.9 billion, which represents a 9.7% decline.

The decline in this franchise’s sales was due to the adverse currency impact in Venezuela and Plavix’s exclusivity loss in Japan. This segment’s major specialty care products include Lovenox, Plavix, Renagel, Aprovel, Depakine, and Synvisc.

Diabetes & Cardiovascular

Diabetes & Cardiovascular franchise sales were off 2% at 1.96 billion euros, or about $2.2 billion in the second quarter of 2016. Sales in the developed regions fell 3.5% and stood at 1.6 billion euros, or about $1.8 billion, while emerging market sales rose 4.7% to 359 million euros, or about $403.7

In the diabetes space, Sanofi competes with Eli Lilly (LLY), AstraZeneca (AZN), and Novo Nordisk (NVO).

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Specialty Care

The Specialty Care segment consists of multiple sclerosis, rare disease, and oncology drugs. Specialty Care sales rose 19.5% to 1.5 billion euros, or about $1.7 billion in 2Q16. Sales in developed markets rose 20.1% to 1.2 billion euros, or about $1.4 billion, while emerging markets contributed 248 million euros, or about $278.9 million during the period.

Consumer Healthcare

Consumer Healthcare sales fell 4.3% to 800 million euros, or about $899.5 million, in 2Q16. The decline was driven by emerging markets, which fell 13% due to the Venezuela impact.

Generics and Vaccines

Sanofi’s generics franchise sales declined 1.9% to 474 million euros, or about $533 million, in 2Q16, while its vaccines sales rose 6.3% to 797 million euros, or about $896.2 billion, in the second quarter of 2016.

Because it’s risky to invest directly in any equity, risk-averse investors often opt to invest in ETFs like the First Trust Value Line Dividend Index Fund (FVD, which has 0.53% of its total holdings in Sanofi.

Continue to the next part for a look at the prospects for Sanofi’s lead diabetes drug.


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