Sanofi net moves up by 9% to € 2.7 bn in Q3

Sanofi, a French pharma giant, has posted satisfactory performance during the third quarter ended September 2014 and its net profit increased by 9.3 per cent to € 2,716 million from €2,484 million in the corresponding period of last year. Its net sales grew by 4.1 per cent to €8,781 million from €8,432 million. EPS improved to €1.47 from €1.36 in the last period. Its R&D expenditure declined by 3 per cent to €1,146 million reflecting lower spend on oncology.

Christopher A Viehbacher, CEO, said, “We are pleased with our performance in the third quarter. We achieved solid business EPS growth driven by continued strong contribution from our growth platforms, allowing us to confirm 2014 outlook. Growth platforms reached over 78 per cent of sales and grew 10 per cent. We have recently seen a more challenging US diabetes price environment which will impact our diabetes sales throughout 2015, while growth platforms globally are expected to continue to show solid growth. At the same time, our pipeline delivered strong results, with the release of exciting phase III data for alirocumab and our Dengue vaccine, the entry of dupilumab in phase III as well as the FDA approval of Cerdelga and the licensing of Afrezza.”

China Human Vaccine Industry

In the wake of China's economic growth and enhanced disease prevention awareness, Chinese human vaccine market has been expanding. In 2012, Chinese human vaccine market valued RMB10.5 billion with the lot release quantity of roughly 773 million person-portions.

Restricted by China's national conditions and policies, EPI vaccines still prevail in China and Chinese EPI vaccine market is almost monopolized by state-run enterprises represented by CNBG Tiantan Biological, Biological Products Institutes in Changchun, Chengdu, Wuhan, Shanghai and Lanzhou, and Institute of Medical Biology of Chinese Academy of Medical Sciences in Kunming. In 2012, state-owned enterprises seized 81.5% of the vaccine lot release quantity in Chinese EPI vaccine market.

Pharma market - Growth

Majority of the Pharma market’s growth is driven by the urban markets,that is, areas that are classified as metros or tier I cities Tier II to tier VI is classified as per urban, while rural is the bottom of the pyramid, which constitutes 67% of India’s population (600,000 villages).

As per IMS Health, per-urban markets account for 38% of total industry sales, being valued at US$3.4 billion, while rural markets account for 17% of total industry sales, being valued at
US$2 billion, in 2010.
 

Over the next ten years, rural markets will grow at a CAGR ranging from a conservative
15% to an aggressive 20%, reaching an expected valuation of between US$8 billion and US$12 billion, depending on the implementation of growth drivers.

The opportunity

Around 742 million people reside in rural areas. There is a significant gap between the number of people residingin villages that require treatment, and quality treatment and medicines reaching these villages. Accessibility of medication in rural areas is very poor, with less than 20% of the population
having access.

This gap represents a huge opportunity for pharmaceutical companies to expand, and we believe that these markets will be the future volume drivers of the industry.

The Industry

    When evaluating the overall industry, factors to be looked at include:

1. size of the market,
2. past and potential market growth,
3. competitive profitability,
4. new market entries,

These market factors must be evaluated on a regular basis, as small changes may have a large impact on an organization’s business activities. For example, if an organization becomes aware of new technology that is on the verge of being introduced into the marketplace, then it can avoid making any new plans that would involve the older, existing technology available. Also, if an organization is

Considering global expansion, then it would be beneficial to be aware of emerging markets, other areas of potential growth, and what other companies have already entered in those markets.

The Competition

A company must be able to identify the strengths and weaknesses of the competition and analyse the ways in which the Competition’s products or services meet the needs of its customer base. 

Has the competition created a significant product differentiation strategy? Has the Competition cornered a specific target market? Is the competition in full-scale Competition with another company? It is essential for these questions to be answered in order to develop the appropriate strategy for successful competition.

As discussed how competition for an airline is not only other airlines, but also other modes of transportation. Evaluating competition requires a company to look at organizations that provide substitutes for its product or service as well as those who provide the same products and services.

Strengths & Weaknesses

Let’s go back to the traditional, well-known marketing tool of the SWOT analysis.

As you may recall, SWOT is an acronym for Strengths, Weaknesses Opportunities and Threats. Opportunities and threats are external factors; strengths and weaknesses are internal factors.

When developing a competitive strategy, it is vital for an organization to be fully aware of its internal strengths and how those strengths relate to the competition. These strengths should be maximized and leveraged to the company’s Advantage as well as highlighted in all business and marketing activities that the company undertakes.

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