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Sanofi: Pre-quarterly Results Communication

                 Sanofi: Pre-quarterly Results Communication                       Pre-quarterly Results Communication   - Sanofi (EURONEXT: SAN and NYSE: SNY) has compiled the following items for    consideration to assist in the financial modeling of the Group's Q2 2014                                   results -  Q2 2013 Business EPS  When including the application of IFRIC 21, Sanofi's business EPS was €1.12 in Q2 2013.  Foreign Currency Impact  The full year business EPS sensitivity to the U.S. Dollar and Japanese Yen are the following:    o1% variation in €/$ corresponds to an impact of 0.5% on 2014 business EPS   o1% variation in €/¥ corresponds to an impact of 0.1% on 2014 business EPS  The main currency variations in Q2 2014  versus Q2 2013 and in H1 2014  versus  H1 2013 were:             €/.       Q2 2013 Q2 2014 Var. H1 2013 H1 2014 Var. U.S. Dollar          1,307    1,371   5%   1,313   1,370   4% Japanese Yen        129,022  140,027  9%  125,466 140,396 12% Canadian Dollar      1,337    1,495  12%   1,335   1,503  13% Australian Dollar    1,322    1,470  11%   1,297   1,499  16% British Pound        0,851    0,815  -4%   0,851   0,821  -4% Chinese Yuan         8,039    8,545   6%   8,129   8,452   4% Brazilian Real       2,703    3,059  13%   2,669   3,149  18% Mexican Peso        16,313   17,821   9%  16,506  17,977   9% Argentina Peso       6,843   11,045  61%   6,731  10,732  59% Venezuelan Bolivar   8,214    8,631   5%   7,552   8,625  14% Russian Rubble      41,378   47,963  16%  40,764  48,020  18% Turkish Lira         2,406    2,898  20%   2,382   2,967  25% South African Rand  12,416   14,463  16%  12,123  14,676  21% Indian Rupee        73,093   82,000  12%  72,307  83,293  15%  As communicated on  April 29, assuming  Q1 2014 exchange  rates for 2014,  the  negative foreign  currency  impact  on  2014  business  EPS  would  have  been  approximately 6 percentage  points. Assuming June  2014 exchange rates  remain  stable until  end  of 2014,  the  negative  foreign currency  impact  on  2014  business EPS would be limited to approximately 5 percentage points.  Based on the evolution of foreign currency rates in Q2 2014, Sanofi  estimates  that the negative foreign currency impact on Q2 2014 financial results  should  be approximately 6 percentage points on sales and between 8 and 10  percentage  points on business EPS.  Business Items  Vaccines  As previously communicated on  April 29, Sanofi expects  vaccines sales to  be  relatively flat  in Q2  2014  versus Q2  2013. In  Q2  2013, strong  sales  of  Pentaxim^® (+48.3% to €87 million in Q2 2013) and Polio vaccines made a strong base for comparison to Q2 2014.  CHC  Chattem launched Nasacort^® OTC nasal spray in February 2014.  Sales  of  products  totaling  €68  million  in  Emerging  Markets  that  were  previously  recorded  in   prescription  pharmaceuticals  in   Q1  2013   were  transferred to Consumer Healthcare. Excluding this change of perimeter,  sales  of CHC grew 9.4% in Q1 2014 reflecting the success of the Nasacort^® Rx-to-OTC switch in the U.S. and strong performance in Emerging Markets (+13.7%).  In Q2  2013, sales  of  products in  Emerging  Markets which  were  previously  recorded in prescription pharmaceuticals and  are now transferred to  Consumer  Healthcare totaled €72 million.  Animal Health  Merial launched NexGard^TM, our next generation  flea and tick product, in  Q1  2014 in the U.S. and  in several European countries  during the first half  of  2014. Sales of NexGard^TM were €23 million in Q1 2014.  Plavix^® in Japan  In Q1 2014,  Plavix^® sales  in Japan grew  48.5% to  €215 million  reflecting  strong underlying volume growth and favorable buying patterns in  anticipation  of an increase in the consumption tax.  Renvela^® in the U.S.  Impax was granted a license to sell in the U.S a limited allotment of  bottles  of an  authorized generic  version of  Renvela^® tablets  starting from  April  2014. The specific allotment corresponds to 7-10% of the total sevelamer sales in the U.S. in 2013.  Financial Results  Medley Adjustment  An adjustment related to generic inventory levels in Brazil was recorded in Q2 2013. The  net effect  of  this adjustment  was to  lower  net sales  by  €122  million. An additional provision of €79 million was recorded for the write-off of inventory and other related  costs. As a result,  in Q2 2013, the  negative  impact from Brazil generics on the business EPS was -€0.17 at 2013 rates (around -€230 million at Business net income level taking into account the Q2 2013 effective tax rate of 21.1%)  Covis Capital Gain  In Q2 2013,  Sanofi recorded a  pre-tax capital gain  of €166 million  (booked  under "Other Current Operating Income") linked to the sales of the U.S. rights of tail products to Covis Pharmaceuticals.  Tax Rate  The effective tax rate for Q2 2013  was 21.1%. The effective tax rate for  the  full year 2013 was 24.0%.  Sanofi estimates that its  effective tax rate for  2014 will be  approximately  25%.  Regeneron  As of April 4, 2014, Sanofi accounts for its 20% investment in Regeneron using the Equity  method. In  2014,  Sanofi's business  net  income is  expected  to  benefit by  approximately  €45 million  (three  quarters) based  on  Regeneron  consensus estimate for US GAAP net income (€/$ rate of $1.38).  Number of Shares  The average number  of shares  in Q2  2014 was  approximately 1,314.5  million  versus 1,325.7 million in Q2 2013.  Share Buyback  In Q2 2014, Sanofi repurchased 8.47  million shares totaling €654 million.  In  H1 2014, Sanofi repurchased 13.23 million shares totaling €1,009 million.  Investor Newsflows: All press releases issued during Q2 2014 are available on our website:  Investor Relations Contact: / +33 1 53 77 42 25  Forward-Looking Statements This press  release  contains forward-looking  statements  as defined  in  the  Private Securities Litigation Reform Act of 1995, as amended.  Forward-looking  statements are  statements that  are not  historical facts.  These  statements  include projections and estimates and their underlying assumptions, statements regarding plans,  objectives,  intentions  and expectations  with  respect  to  future financial results,  events, operations,  services, product  development  and potential, and  statements regarding  future performance.  Forward-looking  statements are  generally identified  by the  words "expects",  "anticipates",  "believes", "intends", "estimates", "plans" and similar expressions.  Although  Sanofi's  management  believes  that   the  expectations  reflected  in   such  forward-looking  statements  are  reasonable,  investors  are  cautioned  that  forward-looking information and  statements are subject  to various risks  and  uncertainties, many of which are difficult to predict and generally beyond the control of Sanofi, that could cause actual results and developments to  differ  materially  from  those  expressed  in,  or  implied  or  projected  by,   the  forward-looking information  and  statements. These  risks  and  uncertainties  include among  other  things,  the  uncertainties  inherent  in  research  and  development, future  clinical data  and  analysis, including  post  marketing,  decisions by regulatory  authorities, such as  the FDA or  the EMA,  regarding  whether and when to  approve any drug, device  or biological application  that  may be  filed for  any such  product  candidates as  well as  their  decisions  regarding labelling and other  matters that could  affect the availability  or  commercial potential of such product candidates, the absence of guarantee that the product candidates if approved will be commercially successful, the future approval and  commercial  success  of therapeutic  alternatives,  the  Group's  ability to  benefit from  external growth  opportunities, trends  in  exchange  rates and prevailing interest rates,  the impact of cost containment  policies  and subsequent changes thereto,  the average number  of shares outstanding  as  well as those discussed or identified in  the public filings with the SEC  and  the AMF  made by  Sanofi,  including those  listed  under "Risk  Factors"  and  "Cautionary Statement Regarding Forward-Looking Statements" in Sanofi's annual report on  Form 20-F  for the  year ended  December 31,  2013. Other  than  as  required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements.  Link to PDF Version  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Sanofi via Globenewswire HUG#1814193  
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