After posting a reasonable set of financials for the first quarter, Sanofi is not looking to get involved in the mega-merger mania which has once again gripped the pharmaceutical sector.
First to the figures and sales fell 2.7% to 7.84 billion euros, weighed down by adverse currency rates, while business net income, which excludes items such as legal costs, fell was down 3.2% to 1.55 billion euros. The diabetes drug Lantus (insulin glargine) rose 8.2% to 1.45 billion euros, while older products are still making significant contributions.
The bloodthinner Plavix (clopidogrel) climbed 8.2% to 487 million euros, while sales of the antithrombotic Lovenox (enoxaparin) slipped 2.8% to 416 million euros. As for Sanofi’s Genzyme unit, Cerezyme (imiglucerase) for Gaucher disease was down 1.8% to 168 million euros, while Fabrazyme (agalsidase beta) for Fabry disease increased 6.5% to 98 million euros and the oral multiple sclerosis drug Aubagio (teriflunomide) brought in 78 million euros. Consumer healthcare sales were up 9.1% to 885 million euros, while animal health contributed 517 million euros (-6.7%)
Chief executive Chris Viehbacher (pictured) said the firm’s pipeline is showing “steady progress” and for the rest of the year, “we expect important development milestones for multiple high potential pipeline projects”. These include Toujeo, an improved version of Lantus, Sanofi’s dengue vaccine, the cholesterol buster alirocumab, the Gaucher pill Cerdelga (eliglustat) and dupilumab for asthma.
On a conference call, he said that Sanofi is not going to change its strategy of bolt-on acquisitions and is particularly interested in emerging markets and consumer healthcare. “If we can continue to bolt onto our growth platforms we’ll continue to do so,” Mr Viehbacher noted, saying that some of the prices being badged around would not deliver value to his shareholders.
Selling off non-core assets?
Meantime, Reuters has reported that Sanofi is looking to sell a portfolio of mature drugs that could bring in $7-$8 billion.
Citing unnamed people familiar with the matter, Sanofi has teamed up with investment bank advisory firm Evercore Partners and contacted potential buyers in the past few months. The drugs allegedly for sale include treatments for high blood pressure and cardio-metabolic diseases and have roughly $3.7 billion in combined annual revenue.
