
Sanofi falls short in Q3 as diabetes and MS sales disappoint
Sanofi falls short in Q3 as diabetes and MS sales disappoint
Sanofi is counting on innovations in MS and other fast-growing markets to fuel its growth.
To make up for a slow and painful decline of its aging diabetes unit, Sanofi has been counting on newer market entrieslike Aubagio and Lemtrada to treat multiple sclerosis. And during the third quarter, both drugs did see their sales grow19% and 5% respectively, in fact. But that wasnt enough to ease investors fears that the French drug giants innovation engine may not be able to outpace the diabetes decline.
Aubagio brought in 382 million ($445 million) during the quarter, while Lemtrada sales were 113 million ($132million). Both numbers came in below analysts expectations. The companys overall sales of 9.05 billion ($10.55 billion) also fell short of the average forecast of 9.26 billion. Sanofis net income was 1.6 billion ($1.9 billion), or 1.71 ($1.99) per share, up 1% year over year, and the company reiterated its guidance that earnings for the full year would be flat over last year.
Sanofis diabetes franchise has been hammered by a combination of patent expirations and pricing pressure on newer productsin the U.S. Last year, both CVS and United Health removed Sanofis insulin mainstay, Lantus from their formularies, replacing it with Eli Lillys Basaglar, a cheaper biosimilar. Sanofis diabetes sales have dropped 20% in the U.S. year-to-date, and the company warned of an accelerated decline in the fourth quarter as the full impact of the CVS and United exclusions hits.
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