Sanofi Returns to Growth in Q4 2013

Sanofi Returns to Growth in Q4 2013

Paris, France - February 6, 2014 - Sanofi (EURONEXT: SAN and NYSE: SNY)

Q4 2013 Change (reported) Change (CER) 2013 Change (reported) Change (CER)
Net sales €8,457m -0.8% +6.5% €32,951m -5.7% -0.5%
Business net income(1) €1,810m +16.8% +30.5% €6,687m -17.5% -9.6%
Business EPS(1) €1.37 +17.1% +30.8% €5.05 -17.8% -9.8%

In order to facilitate an understanding of our operational performance, we comment on our business net income statement. Business net income(1) is a non-GAAP financial measure. The consolidated income statement for 2013 is provided in Appendix 4 and a reconciliation of business net income to consolidated net income in Appendix 3. Consolidated net income for 2013 was €3,717 million, compared to €4,889 million(2) for 2012. Consolidated EPS for 2013 was €2.81 versus €3.71(2) for 2012.

Commenting on the Group's performance in Q4 2013, Sanofi Chief Executive Officer, Christopher A. Viehbacher said,

"Sanofi's growth profile emerged in Q4 2013 with total sales growing 6.5% at CER and growth platforms(3), which represented 72.9% of sales, increasing 10.0% at CER.  Furthermore, new product launches are underway or imminent in most of Sanofi's core businesses and several high potential R&D projects progressed in 2013, including alirocumab, sarilumab and U300."

Q4 2013 and 2013 Performance
·   Sales increased 6.5%(4) in Q4 2013. In 2013, total sales were stable (-0.5%) at €32,951 million.

·   Growth platforms(3) increased 10.0% in Q4 2013. In 2013, sales from growth platforms reached €23,905 million (+6.6%) and accounted for 72.5% of total sales.

·   In Q4 2013, Emerging Markets(5) sales recorded double digit growth (+10.4%). In 2013, Emerging Markets sales were €10,957 million, an increase of 4.4% (+7.1% excluding Brazil generics).

·   Diabetes sales were up 19.0% in Q4 2013. Diabetes recorded strong double digit growth (+18.7%) to €6,568 million in 2013 driven by the performance of Lantus® (+20.0% to €5,715 million).

·   Vaccines sales were stable in Q4 2013 as supply improved for Pentacel® and Adacel® in the U.S. from mid-October. In 2013, Vaccines sales were stable at €3,716 million as record flu vaccines sales offset U.S. supply constraints on Pentacel® and Adacel®.

·   CHC sales were up 6.1% in Q4 2013. Sales of Consumer Healthcare exceeded €3 billion in 2013, an increase of +5.2%.

·   Genzyme recorded a robust performance in Q4 2013 with sales up 31.4%. In 2013, Genzyme recorded sales of
€2,142 million, up 25.9% driven by 16.6% growth of the rare disease franchise and by Aubagio® (€166 million).

·   Animal Health sales were down 6.3% in Q4 2013. Sales of Animal Health decreased 5.3% to €1,985 million in 2013 reflecting increased competition to Frontline®. Broadline(TM), a unique product in the fight against internal and external parasites for cats, was approved in the EU in December.

·   In Q4 2013, business EPS(1) was €1.37 (+ 30.8% at CER). 2013 business EPS was €5.05 (-9.8% at CER).

·   Board proposes dividend of €2.80.
R&D Update
·   In Q4 2013, positive top line results in Phase III trials for U300 (EDITION III, IV and EDITION JP I) and for sarilumab (SARIL-RA-MOBILITY) were announced. The Phase III program for the Fixed-Ratio combination of Lantus®/Lyxumia® was recently initiated.

·   The FDA accepted the New Drug Application of Cerdelga(TM) (eliglustat) for review and granted it a Priority Review designation.
2014 Guidance
·   The continued performance of growth platforms, investments in new product launches and in late-stage pipeline should lead to a 2014 business EPS(1) growth between 4% and 7% at CER, barring major unforeseen adverse events.


(1) See Appendix 8 for definitions of financial indicators; (2) Including impact of transition to IAS 19R; (3) See page 2; (4) Growth in net sales is expressed at constant exchange rates (CER) unless otherwise indicated (see Appendix 8 for a definition); (5) See definition on page 7;

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