Sanofi (NYSE:SNY) Q3 2018 Earnings Conference Call - Final Transcript
Oct 31, 2018 • 09:30 am ET
Ladies and gentlemen, welcome to the Sanofi Q3 2018 Earning Results Conference Call and Live Webcast. I am Emma, the Chorus Call operator. I would like to remind you that all participants will be in a listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Mr. George Grofik, VP, Head of IR at Sanofi. Please go ahead, sir.
Good morning, and good afternoon to everyone on the call. Thank you for joining us to review Sanofi's third quarter results. And as usual, you can find slides of this call on the Investors page of our website at sanofi.com.
(Forward-Looking Cautionary Statements)
With that, please advance to slide three, and let me introduce our speakers today. With me are Olivier Brandicourt, CEO; and Jean-Baptiste de Chatillon, EVP and CFO. Olivier will discuss key highlights of the quarter, Jean-Baptiste will then review the financials in detail and we will close with a Q&A session.
Joining us for Q&A will be Olivier Charmeil, EVP, General Medicines and Emerging Markets; Karen Linehan, EVP, Legal Affairs and General Counsel; David Loew, EVP, Sanofi Pasteur; Alan Main, EVP, Consumer Healthcare; John Reed, EVP, Global R&D; and Bill Sibold, EVP, Sanofi Genzyme.
And with that, I'd like to turn the call over to Olivier.
Thank you, George, and good morning, good afternoon to everyone. Welcome to our third quarter earnings conference call.
Start with slide five. Sanofi delivered strong financial results in the third quarter. On a CER basis, our third quarter sales grew by 6.3% to EUR9.4 billion, and our business EPS increased by 11.2% to EUR1.84. This excellent performance was in line with the new growth phase we had indicated which would begin in the second half of the year.
On slide six, we delivered organic sales growth in the third quarter of around 3%, which excludes a contribution from Bioverativ. In other words, we have reached the point whereas the underlying dynamics of our business are more than offsetting the impact of the LOEs on Lantus and sevelamer.
On slide seven, you can see the sales picture across our five GBUs. The highlight was again the double-digit growth in our Specialty Care business, Sanofi Genzyme. However, we also benefited in the quarter from the anticipated return to growth in our Vaccine business and from solid growth in CHC. Of course, the LOEs continued to be visible in the performance of DCV and GEM, but in each case, the year-on-year impact was less than in the second quarter.
Turning to slide eight, we are now looking at sales by franchise and geography. As in prior quarters, our diversified business structure clearly benefited us, as we navigated our way through the LOE headwinds in mature markets.
In particular, you see an impressive performance from our Emerging Market business with sales up 10%. The recovery of Pentaxim supply in China