Updated on 31 October 2013
For the second quarter in a row, emerging markets have failed to pump up Sanofi’s profits as the company posted a decline in sales and steeper decline in profits in its latest third-quarter results
Singapore: French Drugmaker Sanofi has posted a decline in sales from emerging markets for the second quarter in a row. The company in its third quarter results showed a vast decline in sales from China and Brazil and an even steeper decline in profits. The company has cut its earnings forecast for the year, for the second quarter in a row.
The slowdown in China, faltering generic sales in Brazil and lagging vaccines sales have brought the emerging markets growth to an anemic 2.80 percent for the third quarter.
Sanofi's sales dropped overall by 6.70 percent to $11.59 billion and profits declined by 19 percent. "Times are a changing. The third quarter was an inflection point that marks the end of Sanofi's patent-cliff nightmare. All that ended in August and the company actually put forth sales growth in September," Sanofi CEO, Mr Christopher Viehbacher said.
Problems at one of the company's vaccines plant in Toronto also took a toll on sales in that area. The vaccines affected by those problems were childhood shots, which are higher-margin products, taking a disproportionate bite out of profits. And the biggest impact came from generic competition, which took a $262.70 million chunk out of net sales.
Off-setting all this was some strong growth in diabetes, with Lantus continuing its surge. The drug delivered 21 percent sales growth year-over-year, to $2.01 billion, and the entire diabetes business was up 20 percent on a constant-currency basis.