Sanofi confirm 2016 outlook with Q1 results, EPS rises 5.3%
Sanofi (EPA: SAN) has confirmed its outlook for 2016 with the publication of their first quarter results, with earnings per share rising 5.3% at current exchange rates.
Coming just a day after Sanofi offered $9.3 billion for oncology drug firm, Medivation, the company announced mixed results with aggregate group sales down 1.9% but net profit up.
The Sanofi Genzyme Global Business Unit sales increased 20.5%, with multiple sclerosis drugs such as Aubagio and Lemtrade performing very well, with total MS sales up 76%.
Sanofi Pasteur also increased sales by 8.2%, but the diabetes and cardiovascular business areas declined around 5% despite reaching sales of €1.4 billion. Established Rx products were also down 8.2%. The animal health division, on the other hand, rose by 17.5%.
In terms of capital allocation, net cash generated by operating activities decreased by 29% to €878 million, after capital expenditures of €325 million and an increase in working capital of €822 million.
The company expects 2016 business earnings per share to be broadly stable at current exchange rates, barring “major adverse events”.
In terms of clinical pipeline, dupilumab performed well in Phase III trials for the treatment of chronic inflammatory skin condition, atopic dermatitis. Sanofi indicates that it is the first systemic therapy to show promise in the disease. Also, data from a Phase III trial showed that sarilumab outperformed AbbVie’s blockbuster arthritis drug, Humira.
The company also rolled out the first public dengue immunisation programme in the Philippines in this quarter.
Olivier Brandicourt, chief executive officer at Sanofi, says: “I am pleased with the solid performance of the group in the first quarter driven by Sanofi Genzyme, Sanofi Pasteur and Merial as well as our growth in emerging markets. At the same time, we have made significant progress with two major late-stage pipeline assets, dupilumab and sarilumab, highlighting the potential of our emerging immunology franchise.
“As we enter the second quarter, we remain focused on the execution of our strategic priorities and confirm our financial outlook of broadly stable business EPS at CER for the full year.”
At the time of writing, the stock price at Sanofi has fallen 2.5%.
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