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How Sanofi’s Segments Performed in the First Quarter

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Factors affecting revenue growth

In the first quarter, Sanofi (SNY) reported incremental sales of 480 million euros and 190 million euros associated with its Pharma, Vaccines, and Consumer Healthcare portfolios and Rare Blood Disorder portfolio, respectively, on a YoY basis. The company, however, suffered a negative revenue impact of 157 million euros associated with the divestiture of Zentiva, Sanofi’s European generics business. Additionally, Sanofi also reported a negative revenue impact of 178 million euros due to loss of exclusivity for Lantus and sevelamer in the US market.

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Performance by global business unit

In the first quarter, Sanofi Genzyme or Specialty Care GBU (global business unit) reported revenues of 2.02 billion euros, a YoY rise of 30.8% on a CER (constant exchange rate) basis and 16.0% on a CER/CS (constant structure) basis. According to Sanofi’s first-quarter earnings press release, this performance was attributable to the rapid uptake of Dupixent and the revenue contribution of the acquired Bioverativ.

In the first quarter, Sanofi Pasteur or Vaccines GBU reported revenues of 873 million euros, a YoY rise of 20.1% on a CER basis as well as a CER/CS basis. According to Sanofi’s first-quarter earnings conference call, this performance was an outcome of robust demand for the company’s pediatric vaccines including Pentaxim in China and Menactra in the Middle East.

In the first quarter, the Primary Care GBU reported revenues of 2.28 billion euros, a YoY decline of 17.0% on a CER basis and 11.8% on a CER/CS basis. The divestiture of the company’s generics business in the EU coupled with lower diabetes sales pulled down the franchise’s revenues.

In the first quarter, other GBUs such as the Consumer Healthcare and China & Emerging Markets reported revenues of 1.26 billion euros and 1.96 billion euros, respectively, which implied a YoY revenue change of 0.6% and 10.3%, respectively, on a CER basis.

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