Historical & Comparative Data
Restated business P&L following the sale of the equity investment in Regeneron
On May 29, 2020, Sanofi announced the sale of its equity investment in Regeneron, excluding 400,000 Regeneron shares, which Sanofi is retaining, for total gross proceeds amounting to $11.7 billion.
As a result of this sale, Sanofi’s Q2 2020 non-GAAP business net income statement will exclude the effect of the equity method of accounting for the Regeneron investment in the share of profit/loss of associates and joint ventures line. The effect of the equity method of accounting for the Regeneron investment up to May 29, 2020 will be presented as a reconciling item between IFRS net income and business net income. In addition, Sanofi has restated its previously reported business net income statement for 2019 by quarter and for Q1 2020.
Please find below an Excel file reflecting quarterly 2019 and Q1 2020 restated business P&Ls.
Updated Appendix 1 of all 2019 quarterly earnings press releases reflecting the new GBU structure and product reclassifications / 2019 business P&L including the effect of FRS 16 and some expenses reported differently
As previously communicated, Sanofi has changed the organizational structure of its Global Business Units (GBU) and is now structured with three core GBUs to support the company’s strategy:
• Specialty Care (Dupixent®, Multiple Sclerosis/Neurology/Other Immunology & Inflammation, Rare Disease, Oncology, Rare Blood Disorder);
• General Medicines (Diabetes, Established Products);
Consumer Healthcare (CHC) will be a standalone business unit (ongoing process) with integrated R&D and manufacturing functions.
In order to align with the new structure, for reporting purposes the new geographic breakdown will be: Europe(1), United States and Rest of the World.
The new GBU structure incorporates certain product reclassifications in:
• Oncology. A number of older oncology products(2) have been transferred to Established Products within the General Medicines GBU;
• Cardiovascular. The cardiovascular franchise(3) has been transferred to Established products within the General Medicines GBU;
• CHC. Some CHC products have been transferred to the General Medicines GBU and vice versa, resulting in an almost neutral sales impact to the two business units;
• Rare Disease. The endocrinology products(4) have been transferred to Established products within the General Medicines GBU.
In order to ensure the comparability of Sanofi’s GBU structure in 2020 versus 2019, please find below an Excel file reflecting the new GBU structure and product reclassifications: 2019 net sales by GBU, franchise, geographic region and product (Appendix 1 of the quarterly earning press release).
Please find also below an Excel file reflecting 2019 business net income statements including the effect of (i) the lease accounting standard IFRS 16(5) and (ii) some expenses reported differently in the segment information to conform with the company’s new management reporting: Medical Affairs expense is reported in the Pharmaceuticals segment (previously reported in “Others”) and other cost reallocations between Pharmaceuticals, Consumer Healthcare, Vaccines segments and “Others” including Information Technologies & Solutions, External Affairs, and Business Operations & Support activities.
1. Europe includes Israel and Ukraine
2. Zaltrap®, Mozobil®, Thymoglobulin®, Clolar®, Fludara®, Taxotere®, Eloxatin®, Campath®.
3. Praluent® and Multaq®.
4. Thyrogen®, Caprelsa®.
5. The new lease accounting standard (IFRS 16) impact mainly comes from the amortization of the lease asset recognized on a straight-line basis while the interest expense decreases over the life of the lease. IFRS 16 standard is effective as of 1 January 2019. The impact on business EPS is -2 cents in 2019.
Reconciliation of Free cash flow before restructuring as disclosed in Appendix 5 in the Q4 2018 Press Release and the Free cash flow (CMD - Capital Markets Day definition)
2018 sales with new GBU structure
As previously communicated, Sanofi changed the organizational structure of two of its Global Business Units (GBU) to provide greater focus on its operations. The company created a new Primary Care GBU that combines the product portfolios of Sanofi’s existing Diabetes and Cardiovascular (DCV) GBU with Established Products in mature markets, which was part of the General Medicines & Emerging Markets (GEM) GBU. The new Primary Care unit will focus exclusively on mature markets. In addition, Sanofi created a second new global business unit called China & Emerging Markets. The two new GBUs were launched at the beginning of 2019.
In order to ensure the comparability of Sanofi’s GBUs in 2019 versus 2018, please find below an Excel file with 2018 sales reflecting the new GBU structure.
New segmentation and new IFRS15 revenue standard
Sanofi provides 2017 quarterly and full-year sales and earnings based on the new segmentation. This will also reflect the new IFRS15 revenue standard which becomes effective in 2018.
Change in Reporting of the Animal Health Business
Sales and Business net income statements for each quarter of 2015 and the first three quarters of 2016 with Animal Health Business reported on a separate line “Business net income of Animal Health Business”:
Sales Of Global Business Units
From Q1 2016, Sanofi will report sales of Global Business Units (GBU) - Diabetes & Cardiovascular, General Medicines & Emerging Markets, Sanofi Genzyme (Specialty Care), Sanofi Pasteur (Vaccines) and Merial (Animal Health) - and use a new geographic split.
Below are historical sales of GBUs by geographic region and product.
Change in Presentation of Vaxserve
VaxServe sales of non-Sanofi products are reported on the line Other revenues in the income statement from January 1, 2016. Accordingly, prior period comparative net sales have been reclassified to the line Other revenues.
In order to ensure the comparability of Sanofi’s Global Franchises, Aggregate Company Sales and Aggregate Other Revenues, please find below: