Emerging Markets drive up Sanofi
This article was originally published in OTC Bulletin & The Rose Sheet
Sanofi reported Consumer Healthcare sales up by 2.0% at constant exchange rates to €1.24 billion in the first quarter of 2018, driven by double-digit growth in Emerging Markets.
The growth of Consumer Health in the three months had been held back, the French pharmaceuticals giant noted, by falling sales in both Europe and the US.
In Emerging Markets, turnover had improved by 14.4% to €409 million, Sanofi said, thanks to a solid performance in Latin America.
In terms of product categories in Emerging Markets, both Pain and Digestive had been the stand-out performers – with sales advancing by 30.4% and 23.7% respectively – the firm noted, “mostly driven” by growth in Argentina and Brazil.
Meanwhile, Consumer Healthcare’s Rest of World sales moved forward by 2.9% to €160 million in the first quarter. Sanofi did not comment on the reasons behind the single- digit rise.
On a more negative note, Sanofi posted Consumer Healthcare sales in Europe down by 5.0% to €382 million in the three months.
This single-digit decline, Sanofi explained, had been primarily due to a “high base of comparison” with the prior-year period, when the firm had reaped the benefits of a “strong and early” cough and cold season.
As a consequence of the high base in 2017, first-quarter sales in the Allergy, Cough & Cold and Pain categories in Europe slipped back by 4.7% and 5.0% respectively.
Turning to the US, Sanofi reported a 4.9% drop in Consumer Healthcare sales to €287 million. The firm again blamed a tough comparison with the prior-year period – when retailers had been building inventory ahead of the launch of Xyzal Allergy 24HR (OTC bulletin, 7 April 2017, page 18) – for the single-digit fall in the country’s sales.
US turnover had also been impacted, the company added, by “increased competition” from private-label products, especially in the allergy nasal sprays category.
On Consumer Healthcare’s category performance, Sanofi posted global Allergy, Cough & Cold sales down by 8.1% to €341 million, primarily due to a 62.8% drop in Xyzal turnover. This had been compounded, the firm noted, by a 6.5% slip to €27 million for sales of Mucosolvan cough products, which Sanofi gained through its acquisition last year of Boehringer Ingelheim’s Consumer Health Care business (OTC bulletin, 13 January 2017, page 1).
Turnover in the Pain category had grown by 8.9% to €324 million, Sanofi pointed out, thanks to a significant rise in sales of 45.2% to €54 million for the Buscopan antispasmodic. Pain turnover also benefitted from a better performance from the Doliprane analgesic, sales of which improved by 2.4% to €84 million.
Digestive sales had increased by 15% to €248 million, due to the double-digit growth recorded by Dulcolax and Zantac, Sanofi noted, while Nutritionals sales had risen by 3.4% to €164 million.
Consumer Healthcare accounted for 15.7% of Sanofi’s total first-quarter sales, which slipped back by 0.4% at constant currencies to €7.90 billion.
Following the close of the period, Sanofi trimmed its Consumer Healthcare portfolio by offloading a basket of OTC brands to Cooper-Vemedia for €158 million (OTC bulletin, 27 April 2018, page 5).