Sanofi first-quarter aggregate group sales were €8,543 million down 1.9% at 2016 exchange rates.
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Exchange rate movements had a negative effect of 2.6 percentage points as the adverse evolution of several emerging market currencies more than offset the positive effects from the U.S. dollar and the Japanese Yen against the Euro. At CER, Aggregate Group sales increased 0.7%.
This performance included a negative currency impact related to the change of exchange rate applied for the translation of Venezuela operations, resulting from the evolution of exchange system in February 2016 as well as from the persistent inability to exchange Venezuelan bolivars for U.S. dollars at the privileged official rate.
In addition, in the first quarter of 2015, Sanofi benefited from a significant increase in product demand in Venezuela, due to buying patterns associated with local market conditions.
As a consequence, sales in Venezuela were €3 million in the first quarter of 2016 (€200 million in the first quarter of 2015). Excluding Venezuela, Aggregate Group sales increased 3.0% at CER.
First-quarter Aggregate sales in the U.S. increased 1.5% to €2,966 million. The strong performance of Multiple sclerosis franchise (up 64.7%), and Animal Health (up 19.9%) more than offset the 11.1% decrease in the diabetes franchise.
First-quarter Aggregate sales in Emerging Markets increased 4.2% to €2,373 million. Excluding Venezuela, Aggregate sales in Emerging Markets grew 13.1% driven by Vaccines (up 39.6%) and Animal Health (up 37.5%).
In the Asia region, Aggregate sales increased 15.6% to €833 million in the first quarter driven by the performance in China (up 17.6% to €554 million). In China, the strong performance was mainly due to sales of Plavix, Lantus, and Vaccines.
In Latin America, first-quarter Aggregate sales were down 14.9% to €571 million and up 11.0% excluding Venezuela driven by sales in Argentina and Colombia. Aggregate sales in Brazil were up 1.1% to €217 million impacted by economic conditions in the country.
Aggregate sales in the Eurasia region increased 9.9% to €259 million driven by Turkey. Sales in Russia were up 2.3% to €116 million. In Africa and the Middle East and South Asia, Aggregate sales were up 11.8% to €668 million sustained by the performance in Africa (up 19.2%).
Aggregate sales in Europe increased 1.7% to €2,372 million in the first quarter. The performance of multiple sclerosis (up 98.2%), rare diseases (up 11.1%), diabetes (up 4.0%) and Vaccines (up 45.5%) franchises was partially offset by lower sales of Established Rx products (down 5.5%) and CHC (down 7.3%).
In the first quarter, Aggregate sales in Japan decreased 25.3% to €447 million, impacted by generic competition to Plavix® (down 56.1%). ■