Sanofi’s Rare Disease Franchise Continues to Be a Revenue Boon



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.”)

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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.

MS franchise

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.”)

Oncology franchise

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.


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