25 May

Performance of Sanofi Pasteur in 1Q17

WRITTEN BY Mike Benson

Sanofi Pasteur

Sanofi Pasteur is Sanofi (SNY) human vaccines business. Sanofi Pasteur reported revenue growth of 22.2% at constant exchange rates to 784 million euros during 1Q17. This growth was driven by strong performance of Polio/Pertussis/Hib vaccines, Influenza vaccines, and Travel and Other Endemics vaccines.

Performance of Sanofi Pasteur in 1Q17

Polio/Pertussis/Hib vaccines

The Polio/Pertussis/Hib vaccines franchise include vaccines like Pentacel, Pentaxim, and Imovax. The revenues for this franchise increased 46.2% at constant exchange rates to 432 million euros during 1Q17, following strong sales in the European markets, US markets, and the emerging markets.

Influenza vaccines

Sanofi’s Influenza vaccines include Vaxigrip and Fluzone. The revenues for this franchise rose 85% at constant exchange rates to 38 million euros during 1Q17, following its strong uptake in emerging markets.

Travel and Other Endemics vaccines

Travel and Other Endemics vaccines reported revenue growth of 25.3% at constant exchange rates to 106 million euros during 1Q17. This growth follows its strong performance in the European markets.

Other Products segment

Sanofi’s Other Products segment includes adult booster vaccines, meningitis and pneumonia vaccines, and dengue vaccines.

Adult booster vaccines reported revenues of 79 million euros in 1Q17, a decrease of 5% at constant exchange rates due to lower sales of Adacel vaccine in the US market.

Meningitis and pneumonia vaccines reported revenues of 95 million euros, a decrease of ~25% at constant exchange rates compared to 1Q16 revenues.

The termination of the joint venture SPMSD between Sanofi Pasteur and Merck & Co.’s (MRK) European business Merck Sharpe and Dohme impacted the revenues for the Vaccines business in 1Q17. This joint venture was formed on December 31, 2016, to market these vaccines in the European markets.

Both companies began to independently manage their vaccines business in Europe on January 1, 2017. The above comparison of revenues is made at a constant structure after the termination of the joint venture.

To divest any company-specific risk, investors can consider the Vanguard FTSE All-World Ex-US ETF (VEU), which holds 0.6% of its total assets in Sanofi. VEU also holds 1.2% of its total assets in Novartis (NVS), 0.6% of its total assets in GlaxoSmithKline (GSK), and 0.5% of its total assets in AstraZeneca (AZN).

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