An increase in sales at the ‘new Genzyme’ helped Sanofi’s business EPS grow by 7.2% as revenue topped €8.5bn in the first three months of 2012.

Sales of growth platforms, which include Genzyme, were €5.38bn and accounted for 63.2% of total sales, up from 59.2% in Q1 2011, despite global generic competition on Plavix and Aprovel.

Christopher Viehbacher, Sanofi CEO, said the “strong performance” in the first quarter was “driven by Genzyme, our growth platforms, and cost savings”.

However, Sanofi still expects profits to be down by around 12% to 15% on last year’s figures as a result of generic exposure of major brands.

Overall sales were up 7% compared to the same period last year after revenue in emerging markets increased by nearly a tenth (9.9%), and its pharmaceuticals division was boosted by increased sales in its diabetes and oncology businesses.

First quarter sales in pharmaceuticals reached €7.3bn, an increase of 8.8%, driven by the performance of diabetes drug Lantus which saw sales rise 17.2% to €1.1bn. But generic competition on Plavix, Lovenox and Taxotere hit sales, despite increased demand for Apidra, Eloxatin and Jevtana.

The ‘new Genzyme’ recorded sales of €400m in Q1 – up by 13.7%. Sales of Fabrazyme were up by half to €47m, with Cerezyme up by 5.8% to €149m and sales of Myozyme/Lumizyme also increasing by 17% to €112m.

Sanofi’s own generics business generated an increase of sales after the recent launch of the authorised generic Lovenox saw revenue grow by 6.5% to €439m.

Vaccine sales were down slightly (0.2%) to €617m after the delayed timing of supply of flu vaccines in the Southern Hemisphere. However, the news was better for Sanofi’s consumer health division as it achieved record sales of €805m.

Sanofi is expected to overthrow Pfizer’s nine-year reign as the world’s biggest drug maker, according to new research.

The French pharmaceutical company is expected to retain the top spot until at least 2016, with Pfizer falling to third place behind Novartis due to the loss of Lipitor’s US patent protection, according to EvaluatePharma (see figure one).

The report says that Sanofi’s numerous acquisitions over the last decade have contributed largely to the company’s success, gaining $20 billion after it bought out Genzyme.

Sanofi’s mergers over the last decade have contributed a great deal to its current position, starting with its $30 billion deal with Synthélabo in 1999.

It is expected that the company will retain its top position until at least 2016, mainly thanks to sales of enzyme replacement therapies through its acquisition of Genzyme.

Also, the company’s addition of Cerezyme and Myozyme blockbuster drugs will help fill the gap left by Lovenox, Taxotere, and Plavix, which loses US patent protection in 2012.

Pfizer’s $68 billion buyout of Wyeth in 2009 helped fill the gap left by Lipitor, but it will be difficult to replace the drug’s global sales figure of $13.4 billion seen in 2008, which set the record as the biggest selling medicine.

Following its loss of US patent protection in November 2011, Lipitor sales are estimated to shrink to $2 billion by 2016.

However, pipeline products such as rheumatoid arthritis (RA) pills tofacitinib and Eliquis are expected to boost Pfizer’s drug sales after 2016, which will help retain the company’s position in the top-five pharmaceutical companies.

Merck’s four-year outlook is seen as bleak despite its takeover of Schering-Plough for $41 billion in 2009, with only 1% annual sales growth predicted, conceding to European companies GlaxoSmithKline and Roche to overtake the company.

EvaluatePharma predicts that Johnson & Johnson’s recent pipeline successes will benefit the company in the coming years, despite its drugs arm being substantially smaller than the five biggest pharma companies.

It is thought that Novartis will be Sanofi’s closest competition over the next few years, with strong sales growth from Gilenya and Tasigna due to Diovan’s loss of patent protection next year.

Figure 1: