In order to facilitate an understanding of our operational performance, we comment on our adjusted income statement excluding selected items, a non-GAAP financial measure. The consolidated income statement for the first 9 months of 2009 is provided in Appendix 6, as are details of adjustments and selected items. Consolidated net income for the first 9 months of 2009 was euro 4,056 million, compared with euro 3,669 million for the first 9 months of 2008. Consolidated earnings per share for the first 9 months of 2009 was euro 3.11, versus euro 2.80 for the first 9 months of 2008.
Third-quarter performance(2) buoyed by key growth drivers
- Good performances from Lovenox(R) (+13.7%) and Lantus(R) (+21.7%) across all three geographic regions, continuation of strong uptrend in the presence of Plavix(R) in the United States (+11.3%) and Japan (+50.3%)
- Sales growth of 20.9% in emerging markets
- Strong growth for the Pentacel(R) and Menactra(R) vaccines; substantial proportion of seasonal and A/H1N1 vaccines sales anticipated in the fourth quarter
- OTC sales up 26.3%
- Launch of Multaq(R) in the United States on target; positive opinion from the CHMP in Europe, and approval in Canada and Switzerland
- Impact of competition from generics of Eloxatin(R) in the United States and Plavix(R) in some European countries more than offset by growth drivers
Solid quarterly results and 2009 full-year guidance updated
- 2009 third-quarter adjusted EPS excluding selected items of euro 1.71, +8.2% at constant exchange rates and +16.3% on a reported basis
- Robust cash flow from operating activities to end September, of euro 6,834 million
- 2009 guidance, taking account of approximately $500 million sales of A/H1N1 vaccines expected in the fourth quarter: growth in adjusted EPS excluding selected items of around 11% at constant exchange rates, barring major adverse events
Ongoing transformation of sanofi-aventis
- Business Development: euro 6.2 billion invested to end September 2009
- Reinforcement of the R&D portfolio: two projects (BSI-201 and otamixaban) moved into Phase III; two new alliances with Merrimack in oncology, and Wellstat in diabetes; agreement to acquire Fovea in ophthalmology
- Expansion of the OTC business: agreement to acquire Oenobiol in France
Commenting on the Group's 2009 third-quarter performance, sanofi-aventis Chief Executive Officer Christopher A. Viehbacher said:
"We pursued our transformation strategy in the third quarter, reinforcing our platforms for growth and forging ahead with our policy of R&D alliances and targeted acquisitions. As promised, we have mobilized substantial resources on the production of A/H1N1 vaccines."
2009 third-quarter and 9-month net sales
Unless otherwise indicated, all sales growth figures in this press release are stated at constant exchange rates.
In the third quarter of 2009, sanofi-aventis (NYSE: SNY) generated net sales of euro 7,400 million, up 8.0% on a reported basis. Exchange rate movements had a favorable effect of 2.0 percentage points, with the appreciation of the U.S. dollar (and to a lesser extent the yen) against the euro more than offsetting the unfavorable effects of some other currencies. At constant exchange rates, and after taking account of changes in structure (in particular the consolidation of Zentiva and Medley), net sales rose by 6.0%. Excluding changes in structure and at constant exchange rates, third-quarter organic net sales growth was 3.2%.
Net sales for the first nine months of 2009 were 7.2% higher at euro 21,945 million. Exchange rate movements, primarily the appreciation of the U.S. dollar against the euro, had a favorable effect of 3.1 percentage points. At constant exchange rates, and after taking account of changes in structure (primarily the consolidation of Zentiva and Medley in the second quarter, and the end of commercialization of Copaxone® by sanofi-aventis in North America effective April 1, 2008), net sales rose by 4.1%. Excluding changes in structure and at constant exchange rates, organic net sales growth over the first 9 months of 2009 was 3.5%.