Sanofi (SNY – Free Report) reported third-quarter 2017 earnings of $1.00 per American depositary share, which were in line with the Zacks Consensus Estimate. Earnings declined 4.5% on a reported basis. However at constant currency rates (CER), earnings rose 1.1%.

Third-quarter net sales rose 0.3% on a reported basis and 4.7% at CER to almost $10.59 billion (€8.05 billion). Sales, however, missed the Zacks Consensus Estimate of $10.93 billion. Unfavorable exchange rate movements hurt sales by 4.4%.

In January 2017, the French drug maker swapped its Merial Animal Health businesses with Boehringer Ingelheim’s Consumer Healthcare (CHC) business. Reflecting this exchange and full consolidation of Sanofi’s European vaccines operations, sales declined 0.2% at constant structure (CS) and CER.

Sales declined 2.4% at CER in the United States. However, sales rose 11.4% in Emerging Markets, 8.2% in Europe and 9.1% in the Rest of the World (Japan, South Korea, Canada, Australia, New Zealand, Puerto Rico).

All growth rates mentioned below are on a year-on-year basis and at CER.

Segmental Performance

Pharmaceuticals sales (including emerging markets) increased 3.2% to €7.14 billion. However, at CS and CER, Pharmaceuticals sales declined 1.2% as double-digit growth of multiple sclerosis drugs and vaccines franchises and robust growth in emerging markets was offset by a decline in diabetes, established products and generics sales.

Sanofi reports through five Global Business Units (GBUs) – Sanofi Genzyme (Specialty Care), Diabetes & Cardiovascular, General Medicines & Emerging Markets, Consumer Healthcare and Sanofi Pasteur (Vaccines).

Sanofi Genzyme/Specialty Care GBU sales (including emerging markets) increased 12.5% to €1.63 billion, driven by strong U.S. launch of Dupixent and higher sales of multiple sclerosis (MS) drugs.

Sales of MS drugs Aubagio rose 19.2% to €382 million while sales of Lemtrada went up 5.4% to €113 million. However, sales of both these drugs declined sequentially in the quarter.

Meanwhile, sales of rare disease drugs like Myozyme/Lumizyme improved 5.9% to €191 million while Fabrazyme sales were €175 million, up 4.5%. Cerdelga sales came in at €31 million, up 14.3% while Cerezyme sales rose 1.6% to €178 million.