Rare disease franchise
Sanofi’s (SNY) Specialty Care franchise consists of rare disease drugs, MS (multiple sclerosis) drugs, and oncology drugs. The franchise generated 2.9 billion euros, or about $3.3 billion, which translates to a 15.7% annual growth on a reported basis in the first half of 2016. (For details on the rare disease franchise, please read “Rare Disease Portfolio Helped Sanofi to Offset Falling Diabetes Sales.”)
The rare disease franchise includes drugs such as Cerezyme, Cerdelga, Myozyme-Lumizyme, Fabrazyme, and Aldurazyme. Aldurazyme is manufactured by BioMarin (BMRN), while Genzyme is responsible for the marketing and distribution of the drug. The rare disease franchise generated 1.4 billion euros, or about $1.6 billion, during the first six months of 2016, which translates to a 7.4% annual growth on reported basis.
The MS franchise, which includes Aubagio and Lemtrada, generated 790 million euros, or about $888.3 million, in 1H16. On reported basis, Aubagio grew by 58.8% and earned 594 million euros, or about $667.9 million, during 1H16, while Lemtrada earned 196 million euros, or about $220.4 million.
Wall Street analysts project that Aubagio will fetch 1.2 billion euros, or about $1.4 billion, in 2016 and 1.5 billion euros, or about $1.7 billion in 2017. (For details on Sanofi’s MS franchise, please read “Multiple Sclerosis Drug Sales Grew by 112% in 2015.”)
Sanofi’s oncology franchise includes Jevtana, Thymoglobulin, Taxotere, Eloxatin, Mozobil, Zaltrap, and other oncology drugs. The franchise’s revenues stood at 721 million euros, or about $810.7 million, in the first half of 2016.
Jevtana, a prostate cancer drug, competes with Medivation’s (MDVN) Xtandi and Johnson & Johnson’s (JNJ) Zytiga. But with the failure of the Medivation acquisition deal, Sanofi’s oncology portfolio won’t likely remain attractive.
Investors should note that to gain exposure to Sanofi while controlling excessive company-specific risks, they can 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 details on Sanofi’s Zika Virus vaccine chase.