Industry Trend Analysis - Decline In Diabetes Drug Sales To Hurt Revenues - MAY 2016


BMI View : Despite Sanofi report ing growth in its revenues in Q4 15, the projected drop in sales revenue in the diabetes division will result in the company's investors keeping a close eye on the management's strategy , and t he company's board will have to be increasingly transparent regarding company strategy in order to restore investor confidence.

In Q415, multinational drugmaker Sanofi reported a 2.3% increase in net sales in actual terms (-1.6% in constant exchange rate (CER) terms) to EUR9.28bn (USD10.47bn); a 6.5% decrease in business net income to EUR1.71bn (USD1.93bn) in actual terms (-13.5% in CER terms), and a decrease in earnings per share to EUR1.31 (USD1.48). Sales were boosted by the favourable impact of generic medicine sales (+4.7%), animal health (+5.9%) and Genzyme (+28.2%) sales. Exchange rate movements had a positive effect of 3.9 percentage points, primarily reflecting the strength of the US dollar against the euro, which largely offset the negative impact of the Russian rouble and the Brazilian real.

Emerging Markets

Revenues Rise, Income Falls
Sanofi: Q415 Financial Snapshot (EURmn)
Source: Sanofi

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