Sanofi (NYSE:SNY) Q4 2018 Earnings Conference Call - Final Transcript

Feb 07, 2019 • 08:30 am ET


Sanofi (NYSE:SNY) Q4 2018 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, welcome to the Sanofi Q4 and Full Year 2018 Earnings Results Conference Call and Live Webcast. I am Emma, the Chorus Call operator. (Operator Instructions) The conference is being recorded. The conference must not be recorded for publication or broadcast.

And at this time, it's my pleasure to hand over to Mr. George Grofik, Vice President, Head of Investor Relations at Sanofi. Please go ahead, sir.

George Grofik

Good morning and good afternoon to everyone on the call. Thank you for joining us to review Sanofi's fourth quarter and full year results. As usual, you can find the slides of this call on the Investors page of our website at

Moving to Slide 2. I would like to remind you that information presented in this call contains forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. I refer you to our Form 20-F document on file with the SEC and also our Document de Reference for a description of these risk factors.

With that, please advance to Slide 3, and let me introduce our speakers today. With me are Olivier Brandicourt, Chief Executive Officer; Jean-Baptiste de Chatillon, Executive Vice President and Chief Financial Officer; and John Reed, Executive Vice President, Global R&D. Olivier will discuss key highlights, after which Jean-Baptiste will review the financials. John will then provide an update on R&D strategy. We will close with a Q&A session.

Joining us for the Q&A will be Olivier Charmeil, Executive Vice President, General Medicines and Emerging Markets; Karen Linehan, Executive Vice President, Legal Affairs and General Counsel; David Loew, Executive Vice President, Sanofi Pasteur; Alan Main, Executive Vice President, Consumer Healthcare; Bill Sibold, Executive Vice President, Sanofi Genzyme; and Dieter Weinand, Executive Vice President, Primary Care.

With that, I'd like to turn the call over to Olivier.

Olivier Brandicourt

Thank you, George. Good morning, good afternoon to everyone. Welcome to our fourth quarter and full year earnings conference call.

On Slide 5, Sanofi's fourth quarter results were in line with our expectations. At constant exchange rate, sales and business EPS grew by 3.9% and 4.7%, respectively. Sales growth on a constant structure basis was close to 3%, continuing the new growth phase, which began in the third quarter. For the year, we delivered business EPS growth of 5.1%, at the top end of our guidance. Slide 6 breaks down our fourth quarter sales performance to show the drivers of our organic growth. We can see that, in the third quarter, the underlying dynamics in our business are more than offsetting the impact of LOEs.

On Slide 7, you can see the sales picture across our five GBUs. The highlight was, again, the strong double-digit growth in our Specialty Care business, Sanofi Genzyme. However, we also benefited from the expected return to growth in our Vaccine business. On Slide 8, as in previous quarters, our diversified business structure clearly benefited us as we managed the impact of LOE headwinds in mature