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A Look at Sanofi’s Diabetes Franchise in the First Quarter

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Apr. 30 2019, Published 3:50 p.m. ET

Diabetes franchise revenues

In the first quarter, Sanofi’s (SNY) Diabetes franchise reported net sales of 1.29 billion euros, a YoY decline of 6.9% on a CER (constant exchange rate) basis. According to Sanofi’s first-quarter earnings press release, this performance was due to the weaker performance of Lantus and Toujeo. Lantus reported worldwide sales of 774 million euros, a YoY decline of 17.2% on a CER basis. Toujeo reported global sales of 211 million euros, a YoY rise of 5.6% on a CER basis.

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Performance by market

Sanofi’s diabetes franchise reported sales of 849 million euros from developed markets, a YoY decline of 15.9% on a CER basis. The company reported 445 million euros in revenues from the US market, a YoY decline of 22.8%.

Sanofi’s diabetes franchise reported sales of 305 million euros from Europe, a YoY decline of 5.6% on a CER basis. The company reported 445 million euros in revenues from emerging markets, a YoY rise of 15.3%.

Lantus and Toujeo

Lantus reported 284 million euros in sales from the US market, a YoY decline of 36.6%. According to Sanofi’s first-quarter earnings conference call, higher rebates and increasing pricing pressures due to increased Part D coverage gap contribution has been a major factor driving down the drug’s sales.

Lantus also reported 152 million euros in revenues from Europe, a YoY decline of 16.0%. According to Sanofi’s first-quarter earnings press release, this drop was associated with increasing competition as well as patients switching to Toujeo. Lantus also reported 281 million euros in revenues from emerging markets, a YoY rise of 14.9%.

Toujeo reported 69 million euros in sales from the US market, a YoY decline of 24.7%. According to Sanofi’s first-quarter earnings press release, increasing pricing pressures due to increased Part D coverage gap contribution and a lower average net price have been major factors driving down the drug’s sales. Toujeo also reported sales of 80 million euros from Europe, a YoY rise of 19.4% on a CER basis, and 44 million euros from emerging markets, a YoY rise of 64.3%.

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