Sanofi’s revenues in 1Q17

Sanofi (SNY) reported ~8.6% revenue growth at constant exchange rates in 1Q17 compared with 1Q16. The company reported revenues of ~8.6 billion euros in 1Q17 compared with ~7.8 billion euros in 1Q16.

Sanofi’s Revenue Growth in 1Q17

Structure of the group

Sanofi’s business reorganization took effect on January 1, 2016. The company’s five business units follow:

  • Sanofi Genzyme – the specialty care business
  • Diabetes and Cardiovascular business
  • Generic Medicines and Pharmaceutical Sales for emerging markets
  • Consumer Healthcare
  • Sanofi Pasteur – the vaccines business

On January 1, 2017, the group announced two major changes in its structure:

  • Sanofi completed the exchange of Merial, its animal health business, with Boehringer Ingelheim’s Consumer Healthcare business.
  • Sanofi and Merck & Co. (MRK) also terminated the joint venture SPMSD for the vaccines business in the Eurozone on January 1, 2017.

Adjusting the revenues for these structural changes, the company reported 3.5% growth in 1Q17 at constant exchange rates.

Segment-wise performance 1Q17

Sanofi’s business is reported in two segments:

  • Pharmaceuticals segment – Sanofi Genzyme, Diabetes and Cardiovascular Franchise, General Medicines and Emerging Markets, and Consumer Healthcare
  • Human Vaccines segment – Sanofi Pasteur

The Pharmaceuticals segment’s revenues rose 7.4% to ~7.9 billion euros in 1Q17 compared to 1Q16. This segment is classified further into additional franchises, including:

  • Genzyme
  • Diabetes and Cardiovascular
  • General Medicines and Emerging Markets
  • Consumer Healthcare

The increase in revenues was driven by:

  • Multiple Sclerosis, Rare Diseases, and Oncology franchise in Genzyme
  • Cardiovascular
  • Established Prescription Products
  • Consumer Healthcare

Sanofi Pasteur’s revenues rose 22.2 % at constant exchange rates to 784 million euros during 1Q17. This was mainly driven by increased sales of Polio/Pertussis/Hib vaccines, Influenza vaccines, and Travel and Other Endemics vaccines.

To divest any company-specific risk, investors can consider ETFs like the Vanguard Total World Stock Index ETF (VT), which holds 0.2% of its total assets in Sanofi.

The Vanguard Total World Stock Index ETF also holds 0.6% of its total assets in Johnson & Johnson (JNJ) and 0.5% of its total assets in Novartis (NVS).

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