IR Thematic Seminar in LatAm     São Paulo - November 29th - 30th, 2012
Forward Looking StatementsThis presentation contains forward-looking statements as defined in the Private Securities Litig...
AgendaNovember 29, 2012      LatAm Highlights        ● Hanspeter Spek, President, Global Operations      Brazil Overview  ...
AgendaNovember 29, 2012      Diabetes        ● Fernando Sampaio, General Manager, Sanofi Pharma, Brazil      Generics     ...
AgendaNovember 30, 2012                                                                                  (1)      The Inte...
LatAm HighlightsHanspeter SpekPresident, Global Operations                               6
A Strong and Experienced Group of Managers Presentingat the IR Thematic Seminar on LatAm                         Heraldo M...
Agenda Latin America - A Fast Growing Region Sanofi - The Market Leader in LatAm                                         8
Latin America Is a Region of Diversity                                                                      Mexico        ...
The Economic Outlook for LatAm Remains Positive ● Economic indicators show resilience                      LatAm GDP Growt...
The Unequal Evolution of Healthcare ExpendituresReflects a Diverse Socio-Economic Environment ● LatAm healthcare expenditu...
LatAm Markets Are Largely Out-Of-Pocket but PublicFunding Is a Growing Percent of Healthcare Expenditures     Split of Pha...
A Growing and Aging Population with IncreasedPurchasing Power of a Larger Middle Class                                    ...
Healthcare Expenditures in LatAm Are Projectedto Continue to Expand ● LatAm healthcare expenditure per                    ...
LatAm Pharmaceutical Markets Are Expected to ReachOver $100bn by 2016     Rank in 2000(1)                    Rank in 2016e...
Top 3 Countries Make Up ~70% of Pharmaceuticalsin LatAm                    2011                                           ...
Agenda Latin America - A Fast Growing Region Sanofi - The Market Leader in LatAm                                         17
LatAm Is a Significant Contributorto Sanofi’s Leadership in Emerging Markets                                              ...
Sanofi Is the Market Leader in LatAm ● Sanofi: an undisputed market                        2008(1)               MAT Q2 20...
Sanofi Is a Well Diversified Player in LatAmwith Multiple Sources of Sustainable Growth                  LatAm Sales Split...
Brazil and Mexico Represent >2/3 of Sales and Headcountfor Sanofi in LatAm     Geographic Sales Split             Headcoun...
Sanofi’s Leadership in LatAm Is Illustrated byits Broad Industrial Footprint and Significant Headcount ● A network of 10 p...
LatAm Represents a Strategic Opportunityfor Sustainable Growth    Historical      ● Leverage unique accumulated local expe...
Brazil OverviewHeraldo MarcheziniSenior Vice President, Latin Americaand General Manager, Brazil                          ...
Agenda Brazil - A Country on the Rise The Pharmaceutical Market in BrazilSanofi’s Leadership in Brazil                    ...
Brazil - A Country on the Rise ● Significant growth potential                                                             ...
Brazil Benefited Significantly from a Period of Stabilityand Rising Living Standards from 2000 to 2011                    ...
Agenda Brazil - A Country on the Rise The Pharmaceutical Market in BrazilSanofi’s Leadership in Brazil                    ...
Brazil Is Expected to Become >$47bn PharmaceuticalMarket by 2016 ● Brazil expected to become the 4th                      ...
Changing Dynamics in a Competitive Marketplace     Regulatory Environment                                                 ...
Drugstore Chains are Increasingly Important Playersin the Retail Market ● Drugstore chains capture share                  ...
Agenda Brazil - A Country on the Rise The Pharmaceutical Market in BrazilSanofi’s Leadership in Brazil                    ...
Sanofi’s Largest Operation in Emerging Markets ● Commercial presence since 1955                                           ...
Our Continued Success is Based on 3 Pillars           Sustainable growth driven by strengths in the local market 1        ...
Sanofi: Well Diversified with Leading Presencein Key Pharma Market Segments in Brazil                                     ...
Strong Outlook for Future Growth of Pharmaceuticalsin Brazil                        A tailored approach in each market seg...
GenzymeRogerio Vivaldi, MDSenior Vice President, Head of Rare Diseases                                               37
Agenda Genzyme’s History in LatAm Genzyme - A Leader in Treating Rare Diseases in LatAmBuilding a Presence in Multiple Scl...
Genzyme - A Commitment to Changing the Livesof Patients with Rare Diseases                      - A Transformative Therapy...
Applying Genzyme’s Deep Commitmentto Rare Diseases in LatAm                                                               ...
Genzyme Benefits from a Strong History in LatAm ● Headquarters in Rio de Janeiro,   Brazil (1997)                         ...
Genzyme Pioneered and Overcame Challenges in LatAm Challenges                      Genzyme Expertise Socialized Medicine  ...
Today, Genzyme Is Well-Established in LatAm1   Leader in LatAm treating patients with Enzyme Replacement Therapy (ERT)    ...
Agenda Genzyme’s History in LatAm Genzyme - A Leader in Treating Rare Diseases in LatAmBuilding a Presence in Multiple Scl...
Genzyme’s Rare Disease Business in LatAmHas a Promising Growth Outlook ● LatAm sales represented 10% of                   ...
Genzyme’s Growth Expected to Come from NewlyIdentified Patients and Full Supply Situation                                 ...
Brazil Has the Second Largest Gaucher Patient Populationin the World(1) ● First Gaucher patient treated with              ...
Eliglustat Expected to Expand Genzyme’s GaucherFranchise ● >100 patients enrolled in LatAm in                    Eliglusta...
Agenda Genzyme’s History in LatAm Genzyme - A Leader in Treating Rare Diseases in LatAmBuilding a Presence in Multiple Scl...
The Multiple Sclerosis Market in LatAm Is Poisedfor Significant Change ● Market estimated to be ~€375m                    ...
Genzyme Contributing to Sanofi’s Growth in LatAm                          1         Well Established Rare Disease presence...
Paulinho, Brazil                   52
Consumer HealthcareHeraldo MarcheziniSenior Vice President, Latin Americaand General Manager, Brazil                      ...
Agenda Consumer Healthcare Market in LatAm Sanofi’s Successful Brand Strategies in LatAm                                  ...
LatAm is One of the Fastest GrowingRegional Consumer Healthcare Markets Worldwide(1)   Total CHC Market in LatAm in 2012  ...
The CHC Market Remains Very Fragmented in LatAm ● Strong presence of multinational                Top 10 CHC Companies in ...
The CHC Market in LatAm Has Grown Double-Digitsfor Many Years ● Experiencing solid double-digit   growth for more than 10 ...
Agenda Consumer Healthcare Market in LatAm Sanofi’s Successful Brand Strategies in LatAm                                  ...
Sanofi is #1 in CHC in LatAm ● CHC is a key contributor to Sanofi’s                       CHC Quarterly Sales             ...
Strategic Investment Focused on Regional Brands andLocal Heroes             Pain      Gastro-     Cough &   VMS/Nutra-    ...
- The Champion in Brazil Keeps Growing● Top selling brand(1) in the pharma  market in Brazil since 2006    ● #1 out of >11...
&A Successful CHC Growth Story in LatAm ● “Intimate Hygiene” : a new category              and   with low household penetr...
- Innovation and Growth in the Categoryvia Geographical Expansion in LatAmin €m                                           ...
DePura® - A New CHC Brand Launched by Sanofiin the Brazilian Vitamins Market ● Regulatory status of a food   supplement an...
Strategic Focus Has Driven Performance of Sanofi’s CHCGrowth Platform in LatAm    Strategic Priorities         Revenue Bas...
Sanofi is #1 in Consumer Healthcare in LatAm(1) ●1 Broad portfolio of well-established brands with   name recognition at t...
DiabetesFernando SampaioGeneral Manager, Sanofi Pharma, Brazil                                         67
AgendaThe Diabetes Market in Latin America and BrazilSanofi - A Leader in DiabetesBroadening Access with A Patient Centric...
Diabetes is a Large Growth Opportunity in LatAm   Adults with diabetes in Latin America(1)                                ...
Diabetes Prevalence is Rapidly Growing in LatAm● Expected growth of diabetes                                  Diabetes Pre...
20 Million Diabetic Patients Expected in Brazil by 2030● Aging population with increased                                  ...
Other LatAm Markets Also Hold Sizable Potential                      Mexico                                               ...
Basal Insulins Are the Largest and Fastest GrowingInsulin Segment in LatAm                           Insulin Market Share ...
AgendaThe Diabetes Market in Latin America and BrazilSanofi - A Leader in DiabetesBroadening Access with A Patient Centric...
Sanofi: A Track Record of Strong Growth in Diabetesin LatAm                                                  Diabetes LatA...
Lantus® is the Cornerstone of our Diabetes Franchise andour LatAm Presence is Well-Diversified      Sales Split by Product...
Sanofi: The Leader in Diabetes in LatAm                                                                                   ...
Sanofi Has the Highest Insulin Market Share in LatAmand Brazil                   Insulin Market Share by Company (Value)  ...
Sanofi: A Strong Heritage of Diabetes Solutions in Brazil     1972              1996                2000             2004 ...
AgendaThe Diabetes Market in Latin America and BrazilSanofi - A Leader in DiabetesBroadening Access with A Patient Centric...
Patients’ Purchasing Power Limits Private Market Growth            Income per Household Brazil                (households ...
Lantus® is Not Sufficiently Accessible in Brazil                                                                        Br...
“Alcance” Project Expands Lantus® Access in Braziland Supports Volume Expansion● Selectively targets patients that  cannot...
Sales in Brazil Accelerated following Implementationof Alcance             Lantus® Sales Growth: Private Sector (€m)      ...
Delivering More Value to Patients in Brazil                  Insupen needle aims to improve patient                  satis...
An Integrated Solution Provider for Diabetic Patients                                                           Core Brand...
Key Pillars to Fuel our Diabetes Growth in LatAm                                                   87
GenericsHeraldo MarcheziniSenior Vice President, Latin Americaand General Manager, Brazil                                 ...
Agenda Generics - A Fast Growing Market Segment Medley - A Major Player in the Generics MarketMedley’s Strategy for Contin...
Generics Are a Fast Growing Segment in the LatAmPharmaceutical Market                                                     ...
Continued Leadership in the Generics Market is Key toour Growth Strategy in LatAm                    Sales in €bn in 2012(...
The Brazilian Generics Market OffersTwo Distinct Business Models                                                    1     ...
Agenda Generics - A Fast Growing Market Segment Medley - A Major Player in the Generics MarketMedley’s Strategy for Contin...
- A Powerhouse for Affordable Medicines                                                                                   ...
A Highly Competitive Portfolio Alignedwith Market Demand in Brazil Medley‘s portfolio includes 65 out of 77               ...
High Exposure to the São Paulo State Market ProvidesOpportunity for Geographic Diversification        Market Share per Reg...
A Compelling Presence at the Point-of-Sale● Exploit selling space to raise awareness  for preferred brand● Wealthier middl...
Agenda Generics - A Fast Growing Market Segment Medley - A Major Player in the Generics MarketMedley’s Strategy for Contin...
- Consolidate Leadership Position    in the Generics Market in LatAm           3 Strategic Levers for Future Growth in Bra...
Esomeprazol - A Major Launch Success in 2012   Share of esomeprazol market in Brazil(1)             ● Esomeprazol: a high ...
Portfolio Expansion into Key Countries Across LatAm  25      countries with Medley’s products in Latin America  78      th...
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2012 - IR - LatAm

  1. 1. IR Thematic Seminar in LatAm São Paulo - November 29th - 30th, 2012
  2. 2. Forward Looking StatementsThis presentation 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 includeprojections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions andexpectations with respect to future financial results, events, operations, services, product development and potential, andstatements regarding future performance. Forward-looking statements are generally identified by the words "expects","anticipates", "believes", "intends", "estimates", "plans" and similar expressions. Although Sanofis management believesthat 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 andgenerally beyond the control of Sanofi, that could cause actual results and developments to differ materially from thoseexpressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertaintiesinclude 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 toapprove any drug, device or biological application that may be filed for any such product candidates as well as theirdecisions regarding labeling and other matters that could affect the availability or commercial potential of such productcandidates, the absence of guarantee that the product candidates if approved will be commercially successful, the futureapproval and commercial success of therapeutic alternatives, the Groups ability to benefit from external growthopportunities, trends in exchange rates and prevailing interest rates, the impact of cost containment policies andsubsequent changes thereto, the average number of shares outstanding as well as those discussed or identified in thepublic filings with the SEC and the AMF made by Sanofi, including those listed under "Risk Factors" and "CautionaryStatement Regarding Forward-Looking Statements" in Sanofis annual report on Form 20-F for the year ended December31, 2011. Other than as required by applicable law, Sanofi does not undertake any obligation to update or revise anyforward-looking information or statements. 2
  3. 3. AgendaNovember 29, 2012 LatAm Highlights ● Hanspeter Spek, President, Global Operations Brazil Overview ● Heraldo Marchezini, SVP, Latin America and General Manager, Brazil Genzyme ● Rogerio Vivaldi, MD, SVP, Head of Rare Diseases - Genzyme Consumer Healthcare ● Heraldo Marchezini, SVP, Latin America and General Manager, Brazil Q&A Break 3
  4. 4. AgendaNovember 29, 2012 Diabetes ● Fernando Sampaio, General Manager, Sanofi Pharma, Brazil Generics ● Heraldo Marchezini, SVP, Latin America and General Manager, Brazil Animal Health ● José Barella, SVP, Animal Health - Merial Vaccines ● Patrice Lebrun, VP, Latin America - Sanofi Pasteur Q&A 4
  5. 5. AgendaNovember 30, 2012 (1) The Interfarma Perspective on Brazil ● Antônio Britto, Executive President of Interfarma LatAm Industrial Affairs ● François Blanot, VP Industrial Affairs, Latam Q&A Suzano Plant Visit The Brazilian Pharmaceutical Market ● Herbert Gonçalves, Partner at Primeira Consulta Q&A (1) Interfarma: Brazil Research-based Pharmaceutical Manufacturers Association 5
  6. 6. LatAm HighlightsHanspeter SpekPresident, Global Operations 6
  7. 7. A Strong and Experienced Group of Managers Presentingat the IR Thematic Seminar on LatAm Heraldo Marchezini SVP, Latin America and Fernando Sampaio General Manager, Brazil General Manager, Sanofi Pharma, Brazil François Blanot VP Industrial Affairs Latin America José Barella SVP, Animal Health Merial Rogerio Vivaldi, MD SVP, Head of Rare Diseases Genzyme Patrice Lebrun VP, Latin America Sanofi Pasteur 7
  8. 8. Agenda Latin America - A Fast Growing Region Sanofi - The Market Leader in LatAm 8
  9. 9. Latin America Is a Region of Diversity Mexico CAMAC(2) (1) GDP: $ 1,163bn GDP: $305bn Market Characteristics Population: 115m Population: 70m ● A large population Colombia Venezuela GDP: $365bn ● ~600m people or 8% of the world‘s Population: 47m GDP $338bn Population: 30m population ● Diverse political systems and Ecuador Brazil GDP: $71bn GDP $ 2,425bn unequal distribution of wealth Population: 15m Population: 197m ● LatAm per capita income only 30% of the U.S. Peru Paraguay GDP: $200bn GDP: $26bn ● Regional development gaps Population: 30m Population: 7m ● >30 distinct Emerging Markets Bolivia Uruguay ● Disparities in affordability GDP: $27bn Population: 11m GDP: $50bn Population: 3m ● Public funding vs out-of-pocket expenditures for Healthcare Chile Argentina GDP: $268bn GDP $475bn Population: 17m Population: 41m (1) IMF World Economic Outlook Database, October 2012 (2) CAMAC: Central America & Caribbean Countries 9
  10. 10. The Economic Outlook for LatAm Remains Positive ● Economic indicators show resilience LatAm GDP Growth(1) ● Fairly stable GDP growth projected GDP in % ● Recent slowdown in larger economies Inflation rate in % (Argentina, Brazil) balanced by faster growth in smaller economies (Colombia, Peru, etc...) ● Appreciation of most currencies (except Brazilian Real in 2012) ● Unemployment rate at historic low level: 6.8% for LatAm in 2011(2) ● Mix of external economic factors ● Weaker prospects in advanced economies (Eurozone, U.S.) ● Commodities and food prices boom ● Capital inflow surge Actuals Projections (1) IMF World Economic Outlook 2012 (2) International Labour Organization 2012 10
  11. 11. The Unequal Evolution of Healthcare ExpendituresReflects a Diverse Socio-Economic Environment ● LatAm healthcare expenditures Evolution of Health Expenditures(1) growing faster than GDP (% of GDP per country) ● 8% of GDP in 2010(1) ● Continued strong growth expected Brazil in healthcare expenditures as a Argentina percent of GDP in key markets Ecuador ● Brazil, Mexico, Colombia Mexico ● Disparities in the development of healthcare infrastructure across Colombia LatAm countries ● Tailored approach to local markets required Venezuela (1) World Bank 11
  12. 12. LatAm Markets Are Largely Out-Of-Pocket but PublicFunding Is a Growing Percent of Healthcare Expenditures Split of Pharmaceutical ● Large portion of out-of-pocket (1) Expenditures (%) healthcare expenditures typical of Emerging Markets ● High percent of out-of-pocket spend on Pharmaceuticals (>80% in Brazil) ● Significant public sector funding through healthcare programs in key countries ● Government purchases by "Sistema único de saúde" (SUS) in Brazil ● "Seguro popular" in Mexico ● Private health insurance gaining traction among the middle-class (1) IMS World Review Q1 2012 and Sanofi internal analysis 12
  13. 13. A Growing and Aging Population with IncreasedPurchasing Power of a Larger Middle Class (1) (2)Total Population & People ≥60 in LatAm Middle Class Population in LatAm (in millions) (in millions) (1) Latin America and Caribbean Demographic Center (CELADE) – Population Division of ECLAC and United Nations, 2011 (2) Wolfensohn Center for Development at Brookings Institution, 2010 13
  14. 14. Healthcare Expenditures in LatAm Are Projectedto Continue to Expand ● LatAm healthcare expenditure per % Population ≥ 60 years old relative to capita still low at U.S. $671 vs. Healthcare expenditures per capita(1) global average of ~U.S. $1,000(1) 8000 Healthcare expenditures per capita (U.S.$) ● Growth of average healthcare 7000 expenditure per capita in LatAm 6000 >10% in 2010 5000 ● Market attractiveness to support growth in the medium term 4000 ● Economic expansion of the region 3000 ● Aging population 2000 ● Chronic diseases on the rise ● Growing upper and middle-class 1000 0 5% 10% 15% 20% 25% 30% % Population over 60 years (1) World Bank 14
  15. 15. LatAm Pharmaceutical Markets Are Expected to ReachOver $100bn by 2016 Rank in 2000(1) Rank in 2016e(2) LatAm Pharmaceutical Market1 U.S. 1 U.S. (3) as % of Emerging Markets2 Japan 2 China3 Germany 3 Japan4 France 4 Brazil5 UK 5 Germany6 Italy 6 France7 China 7 Russia8 Brazil 8 Italy9 Canada 9 India10 Spain 10 Canada11 Mexico 11 UK12 Argentina 12 Spain13 South Korea 13 South Korea14 India 14 Australia15 Australia 15 Mexico16 Turkey 16 Argentina17 Netherlands 17 Turkey18 Poland 18 Venezuela (1) IMS World Review 2000 (US$) (2) IMS Market Prognosis 2011-2016 (US$) (3) World excluding USA, Canada, Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, Holland, 15 Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia /New Zealand
  16. 16. Top 3 Countries Make Up ~70% of Pharmaceuticalsin LatAm 2011 2016e $15.0bn $10.9bn $5.4bn $4.1bn $29.0bn $47.4bn $8.5bn $5.7bn $6.6bn $11.7bn $12.2bn $13.6bn Market size $68bn Expected market size $102bn (1) IMS Market Prognosis 2011-2016 (US$) 16
  17. 17. Agenda Latin America - A Fast Growing Region Sanofi - The Market Leader in LatAm 17
  18. 18. LatAm Is a Significant Contributorto Sanofi’s Leadership in Emerging Markets (1) LatAm Sales Emerging Markets Sales >€3,300m €3,111m €2,963m 2012e: ~€11bn 9M 2012 €1,913m Other LatAm Emerging ~30% Markets 70% 2009 2010 2011 2012e (1) World excluding USA, Canada, Western Europe (France, Germany, UK, Italy, Spain, Greece, Cyprus, Malta, Belgium, Luxembourg, Portugal, Holland, Austria, Switzerland, Sweden, Ireland, Finland, Norway, Iceland, Denmark), Japan, Australia /New Zealand 18
  19. 19. Sanofi Is the Market Leader in LatAm ● Sanofi: an undisputed market 2008(1) MAT Q2 2012(1) leader in LatAm for several years 1. 7.3% 1. 7.5% ● Overall market share of 7.5% in Pharmaceuticals(2) 2. PFIZER 6.9% 2. NOVARTIS 5.6% ● Strong presence in most LatAm 3. NOVARTIS 6.6% 3. PFIZER 5.2% countries 4. MERCK 5.3% 4. EMS 4.2% ● Leader in Brazil, the largest market 5. BAYER 4.3% 5. GSK 4.0% ● Significant changes in the LatAm market 6. GSK 4.1% 6. MERCK 3.9% ● Most multinational companies 7. ROCHE 3.9% 7. BAYER 3.7% losing market share 8. ABBOTT 3.1% 8. ROCHE 3.3% ● Increasingly fierce domestic competition 9. J&J 3.0% 9. ABBOTT 3.2% 10. ASTRAZENECA 2.8% 10. HYPERMARCAS 3.0% (1) IMS MIDAS MAT Q2 2012 19
  20. 20. Sanofi Is a Well Diversified Player in LatAmwith Multiple Sources of Sustainable Growth LatAm Sales Split by Business (2012e) Vaccines 12% Animal Health 8% Other Pharmaceuticals 41% 5% New Genzyme 12% Generics 8% 14% Diabetes CHC 20
  21. 21. Brazil and Mexico Represent >2/3 of Sales and Headcountfor Sanofi in LatAm Geographic Sales Split Headcount Split > €3,300m > 10,000 people 33% Other LatAm 29% 20% 21% Mexico 46% Brazil 51% 2012e 2012e 21
  22. 22. Sanofi’s Leadership in LatAm Is Illustrated byits Broad Industrial Footprint and Significant Headcount ● A network of 10 plants dedicated to the LatAm market LatAm Headcount per Function ● ~3,900 people in Manufacturing 2012e ● Branded pharmaceuticals, Generics, R&D CHC, Vaccines, Animal Health 6% ● 95% of Pharma volumes sold in 18% Manufacturing LatAm produced locally Sales Force ● A strong sales force Others ● ~3,900 commercial people 39% ● A solid operating margin 38% ● In line with business operating margin for the whole Emerging Markets perimeter(1) (1) Sanofi’s Business Operating Margin excluding central administrative and R&D costs was around 40% in 2011 in Emerging Markets 22
  23. 23. LatAm Represents a Strategic Opportunityfor Sustainable Growth Historical ● Leverage unique accumulated local experience presence and diversified product portfolio Market reach ● Expand product portfolio to address growing middle-class Manufacturing ● Leverage network of industrial sites to serve increasing volume capacity and ability to produce at local costs Quality of ● Attract, train and retain local management talent management Local ● Use local R&D capabilities to participate in global clinical trials innovation and to respond to LCM needs in LatAm Bolt-on ● Continue to enlarge our portfolio by successfully acquisitions identifying and integrating M&A targets 23
  24. 24. Brazil OverviewHeraldo MarcheziniSenior Vice President, Latin Americaand General Manager, Brazil 24
  25. 25. Agenda Brazil - A Country on the Rise The Pharmaceutical Market in BrazilSanofi’s Leadership in Brazil 25
  26. 26. Brazil - A Country on the Rise ● Significant growth potential Brazil Nominal GDP(3,4) (BRL in trillion) ● 6th largest economy worldwide(1) 4.5 ● 5th largest population (~200m)(2) ● Public debt under control ● Public debt / GDP ratio: 35% in September 2012(3) ● Policy tightening to contain inflation 2.7 ● Stable inflation targeted below 6%(3) ● Economic growth expected to rebound in 2013(4) ● 2011 GDP: +2.7% ● 2012e GDP: +1.5% ● 2013e GDP: +4.0% 2007 2008 2009 2010 2011 2012e (1) IMF 2012, World Bank (2) IBGE – Instituto Brasileiro de Geografia e Estatistica (2010 Population census) (3) Brazilian Central Bank 26 (4) IMF, World Economic Outlook database, October 2012
  27. 27. Brazil Benefited Significantly from a Period of Stabilityand Rising Living Standards from 2000 to 2011 Population Shares of Income Categories ● Increase in employment levels and in Brazil ($ per day)(3) salaries boosted consumption ● Emergence of a large middle class ● Consumer credit expansion created opportunities for the middle class ● Large foreign investment inflows ● Cumulative value of €288bn(1) from 2000-2011 ● Lowest unemployment rate in Brazil’s history reached in 2011 ● 4.7% vs. 11.7% in 2003(2) (1) Brazilian Central Bank (2) IBGE (Average unemployment rate of major metropolitan regions) (3) Socio-Economic Database for Latin America and the Caribbean (CEDLAS and The World Bank) 27
  28. 28. Agenda Brazil - A Country on the Rise The Pharmaceutical Market in BrazilSanofi’s Leadership in Brazil 28
  29. 29. Brazil Is Expected to Become >$47bn PharmaceuticalMarket by 2016 ● Brazil expected to become the 4th Pharmaceutical Market by Segments(1) largest Pharma market by 2016 $47.4bn ● Private demand accounts for the vast majority of the market >+10% CAGR ● Retail sector represented >70% of total market in 2011(1) ● Public market growth accelerated by “Plano Brasil Maior” $29.0bn ● Generics segment expected to outpace market growth ● Expansion of public sector coverage ● “Farmacia popular” program to expand access to medicines for chronic diseases (1) IMS Market Prognosis 2012 and internal estimates 29
  30. 30. Changing Dynamics in a Competitive Marketplace Regulatory Environment Competitive Environment ● Evolving regulatory framework ● Government policies implemented ● Unified Healthcare System (SUS)(1) to boost national industry established in 1988 ● Growing share of domestic players ● Pipeline Patent Law of 1996 46% in 2012, up from 37% in 2007(5) ● ANS(2) created in 1998 ● “Profarma” - Government incentives for local manufacturers ● Generics Law introduced in 1999 ● Public-Private Partnerships (‘PPP’) ● Guidelines for Biosimilars in 2011 for improved technology transfers ● Stricter regulatory procedures ● Fast growing number of generics implemented by ANVISA(3) ● Use driven by government policies ● Bioequivalence tests for all branded Generics/Similares required by ● More Multinationals with “local” base 2014 ● Consolidation in the distribution ● Tight price control through CMED(4) channels ● Annual price adjustments based ● Drugstore chains with regional on multiple criteria expansion strategies (1) SUS- Sistema Único de Saúde (2) ANS - Agência Nacional de Saúde Suplementar (3) ANVISA - Agência Nacional de Vigilância Sanitária (4) CMED - Câmara de Regulação do Mercado de Medicamentos 30 (5) IMS Health 2012
  31. 31. Drugstore Chains are Increasingly Important Playersin the Retail Market ● Drugstore chains capture share Sales Split by of Point of Sales Type(1) in a growing retail market 4-6% ● Investments in regional expansion ● Modern retail concepts with 35-39% state-of-the-art infrastructure ● Launch of private labels ● In-store shopping experience increasingly important to consumers ● Large product assortments appealing to the new Middle-class 57-61% ● Combination of Health, Well-being and Beauty product offerings ● Strong presence in retail channels key to market share expansion (1) IMS Latin America 2012 (IMS Distribution Study, Company Annual Reports, Midea, IMS analysis) 31
  32. 32. Agenda Brazil - A Country on the Rise The Pharmaceutical Market in BrazilSanofi’s Leadership in Brazil 32
  33. 33. Sanofi’s Largest Operation in Emerging Markets ● Commercial presence since 1955 Sales in Brazil(1) (in €m) ● Headquartered in São Paulo ● Also LatAm regional HQ th ● Sanofi’s 5 largest country by sales Brasilia (1) ● Sales of €1,522m in 2011 (+17%) ● 4.6% of Group sales in 2011 Sao Paulo ● >5,200 employees ● Manufacturing capabilities at 4 sites €1,458m €1,522m ● Market leadership gained through A/H1N1 €1,254m acquisition of Medley in 2009 €767m ● Five of Brazil’s top 20 pharma products are from Sanofi(2) (1) 2011 sales growth at CER excluding A/H1N1 sales of €204m in 2010 (2) IMS MIDAS August 2012 33
  34. 34. Our Continued Success is Based on 3 Pillars Sustainable growth driven by strengths in the local market 1 2 3 A Diversified Portfolio A Preferred Partner A Committed Enhanced by the Status at Pharmacies Organization Acquisition of Medley 34
  35. 35. Sanofi: Well Diversified with Leading Presencein Key Pharma Market Segments in Brazil Share of Market Segments in Brazil(1,2,3)Total Pharmaceutical Market (in %) Generics (in %) CHC (in %) Retail Retail HypermarcasRetail + Non Retail 9.8% 12.0% EMS 8.9% Others 11.9% 28.7% Others Novartis Others EMS 7.8% EMS 7.3% Eurofarma 24.1% 7.4% #1 in Pharmaceuticals #1 in Generics #2 in CHC ● Strong local brands including OTX and Mature or Off-Patent Rx Drugs ● >50 brands actively promoted ● Unique combination of medical detailing expertise and media/POS know-how ● More than 150 products and >500 presentations manufactured ● Broad offerings adapted to local needs ● 92% of sales are from non-patented drugs ● New line extensions fueling growth (1) IMS MAT September 2012 (2) In value (3) Only Pharma (Sanofi and Genzyme) - Excluding Vaccines and Merial 35
  36. 36. Strong Outlook for Future Growth of Pharmaceuticalsin Brazil A tailored approach in each market segment Drive performance Consolidate leadership Expand presence in Ethical Rx in Generics in CHC● Strengthen diabetes ● Benefit from increasing ● Leverage broad CHC leadership in private and demand for affordable portfolio through extended public markets, based on drugs by the emerging distribution channels success of Lantus® middle class ● Execute new launches● Successfully launch new ● Seize opportunities with in a brand-driven consumer products launches of high-demand market off-patent products● Continue innovation ● Penetrate into high growth through life cycle ● Secure industrial capacity CHC segments management to accommodate growth 36
  37. 37. GenzymeRogerio Vivaldi, MDSenior Vice President, Head of Rare Diseases 37
  38. 38. Agenda Genzyme’s History in LatAm Genzyme - A Leader in Treating Rare Diseases in LatAmBuilding a Presence in Multiple Sclerosis in LatAm 38
  39. 39. Genzyme - A Commitment to Changing the Livesof Patients with Rare Diseases - A Transformative Therapy Brazil Mexico 39
  40. 40. Applying Genzyme’s Deep Commitmentto Rare Diseases in LatAm Global Rare Diseases Sales(1) Expanding Rare Disease Treatment €470m ● Latin America followed Europe and became a major geographic region of expansion for Genzyme ● Brazil office established in 1997 ● Sales in LatAm of €160m in last four quarters ● Growth of +20% reported in Q3 2012 versus Q2 2012 2011 2012 (1) Key Rare Diseases brands include Cerezyme®, Myozyme®, Fabrazyme®, Thyrogen®, and Aldurazyme® 40
  41. 41. Genzyme Benefits from a Strong History in LatAm ● Headquarters in Rio de Janeiro, Brazil (1997) Mexico city ● Presence expanded over time across LatAm: San Jose Caracas ● Buenos Aires, Argentina (1997) Panama city Bogotá ● São Paulo, Brazil (2000) ● Bogotá, Colombia (2002) Lima ● Mexico City (2003) ● Santiago, Chile (2004) Rio de Janeiro ● San Jose, Costa Rica (2005) São Paulo ● Caracas, Venezuela (2007) Santiago Montevideo Buenos Aires ● Panama City, Panama (2010) ● Montevideo, Uruguay (2010) ● Lima, Peru (2011) 41
  42. 42. Genzyme Pioneered and Overcame Challenges in LatAm Challenges Genzyme Expertise Socialized Medicine Navigating bureaucratic systems Centralized Tender Bids Past success with tender offers Complex Reimbursement Process Experienced professionals No Orphan Drug Legislation Participating in Brazil’s Fast Track process Patient Advocacy Groups Vital role understood Limited Patient Data Comprehensive patient registries 42
  43. 43. Today, Genzyme Is Well-Established in LatAm1 Leader in LatAm treating patients with Enzyme Replacement Therapy (ERT) ● Focused efforts on diagnostic capacity ● Early investment in the region ● >1,700 patients treated with Genzyme’s products(1)2 First fully established biotech company in LatAm ● >300 employees and support staff in 15 countries ● Benefit of aligning with Sanofi’s large infrastructure3 Strong partnerships with key stakeholders ● Governments, Patient Groups, Academia and Research (1) Including Gaucher patients enrolled in clinical trials for the investigational agent eliglustat tartrate 43
  44. 44. Agenda Genzyme’s History in LatAm Genzyme - A Leader in Treating Rare Diseases in LatAmBuilding a Presence in Multiple Sclerosis in LatAm 44
  45. 45. Genzyme’s Rare Disease Business in LatAmHas a Promising Growth Outlook ● LatAm sales represented 10% of LatAm Rare Diseases Sales(1) Genzyme total sales in 9M 2012 €48m ● Genzyme comprised 5% of Sanofi LatAm business in 9M 2012 ● Solid recovery in Brazil attributable to improved supply situation ● Brazil accounted for 46% of Genzyme sales in LatAm in Q3 2012 ● Significant room for expansion exists in other LatAm countries 2011 2012 (1) Key Rare Diseases brands include Cerezyme®, Myozyme®, Fabrazyme®, Thyrogen® and Aldurazyme® 45
  46. 46. Genzyme’s Growth Expected to Come from NewlyIdentified Patients and Full Supply Situation (1) Patients on Treatment in LatAm ~1,700 Eliglustat tartrate 2011 2012 (1) Including Gaucher patients enrolled in clinical trials for the investigational agent eliglustat tartrate 46
  47. 47. Brazil Has the Second Largest Gaucher Patient Populationin the World(1) ● First Gaucher patient treated with Brazil: Gaucher-Treated Patient Share(1) Cerezyme® in 1992 ● Cerezyme® is an established ~1% 3% 10% market leader ● Treating >500 Gaucher patients out of an estimated total population of 10% 660 patients treated in Brazil(1) ● ~86% patient share(2) 76% ● Proven commitment to Gaucher community with ongoing development of eliglustat 86% of all Gaucher-treated patients(2) (1) Estimates based on public information and internal data (2) Including Gaucher patients enrolled in clinical trials for the investigational agent eliglustat tartrate 47
  48. 48. Eliglustat Expected to Expand Genzyme’s GaucherFranchise ● >100 patients enrolled in LatAm in Eliglustat Clincal Program eliglustat Phase 3 trials Patients Enrolled(1) ● Largest clinical trial in the Rare Disease field ever conducted ~400 ● Sites in Argentina, Brazil and Mexico ● Estimated product launch 2014 ~400 ~160 ~170 ~40 (1) (1) Includes Phase II participants 48
  49. 49. Agenda Genzyme’s History in LatAm Genzyme - A Leader in Treating Rare Diseases in LatAmBuilding a Presence in Multiple Sclerosis in LatAm 49
  50. 50. The Multiple Sclerosis Market in LatAm Is Poisedfor Significant Change ● Market estimated to be ~€375m ® in 2011(1) ● ~23,000 patients on DMTs(2) ● 80% of treated patients in Brazil, Under regulatory review in Brazil, Mexico and Mexico and Argentina Argentina ● Regulatory approvals expected in 2013 ● Standard injectable therapies available ● Beta-interferons, glatiramer acetate (3) and natalizumab ● Reimbursement programs exist ● Public and private payors Regulatory submissions in Brazil, Mexico and Argentina expected in Q1 2013 ● Pricing for branded DMTs in range ●Regulatory approvals expected in 2014 of EU and U.S. (1) Based on IMS data and Genzyme estimates (2) Disease Modifying Therapy (3) Lemtrada™ is the proprietary name submitted to health authorities for the company’s investigational multiple sclerosis agent 50 alemtuzumab being co-developed with Bayer Health Care
  51. 51. Genzyme Contributing to Sanofi’s Growth in LatAm 1 Well Established Rare Disease presence in LatAm ● Largest pool of patients treated(1) ● Successful government tenders ● Experienced with payors 2 Existing scope for expansion ● Identify new patients ● Increase publications, education and training on rare diseases ● Create next generation products 3 Future roll-out of Multiple Sclerosis franchise in LatAm ● High unmet need ● Sizeable market ● Leverage success of rare disease experience in the region (1) Based on public information and internal data 51
  52. 52. Paulinho, Brazil 52
  53. 53. Consumer HealthcareHeraldo MarcheziniSenior Vice President, Latin Americaand General Manager, Brazil 53
  54. 54. Agenda Consumer Healthcare Market in LatAm Sanofi’s Successful Brand Strategies in LatAm 54
  55. 55. LatAm is One of the Fastest GrowingRegional Consumer Healthcare Markets Worldwide(1) Total CHC Market in LatAm in 2012 ~€8.7bn, +14%(1) in €bn +15% +41% -0.2% 9% +8% +20% (1) Nicholas Hall OTC Year Book, DB6 2012 (2) IMS MIDAS MAT August 2012 (3) IMS OTC Market MAT August 2012 55
  56. 56. The CHC Market Remains Very Fragmented in LatAm ● Strong presence of multinational Top 10 CHC Companies in LatAm companies by Market Share(1) ● Six MNCs within Top 10 ● Sanofi: #1 player in CHC in LatAm ● Domestic players in leading Hypermarcas positions at a national level ● Hypermarcas #1 in Brazil(1) Others Bayer ● Genomma Lab #1 in Mexico(1) ● Grupo Pharma #1 in Venezuela(1) GSK ● Growing competition from private label brands EMS J&J Boehringer Nestle Genomma Pfizer (1) IMS MIDAS MAT August 2012 56
  57. 57. The CHC Market in LatAm Has Grown Double-Digitsfor Many Years ● Experiencing solid double-digit growth for more than 10 years (€m) 45.0 ● 2012 CHC growth slightly slower +17% than for total market ● Recent re-acceleration, driven by +17% Brazil and Venezuela 28.7 +14% ● CHC growth reflects country specific +10% out-of-pocket spend levels ● Brazil (+15%), Venezuela (+41%), Argentina (+20%) ● Mexico, Uruguay, Ecuador (<10%) +14% +20% +17% ● Opportunities in new segments +11% driven by lifestyle changes ● New focus on nutrition, “well-being” (1) IMS Retail MAT June 2012 - Growth is at constant x-rate 57
  58. 58. Agenda Consumer Healthcare Market in LatAm Sanofi’s Successful Brand Strategies in LatAm 58
  59. 59. Sanofi is #1 in CHC in LatAm ● CHC is a key contributor to Sanofi’s CHC Quarterly Sales (€m) growth in LatAm €130m ● Sales of €470m in last 4 quarters ● Brazil is the 4th largest contributor to Sanofi CHC sales ● Focus on leadership in key categories ● Pain, Gastrointestinals, VMS(2)/Nutraceuticals, Intimate Hygiene ● Strength built on heritage products and brand recognition ● Dorflex® in Pain ● Lactacyd® in Feminine Hygiene ● Launch of new products in growth categories 2009 2010 2011 2012 ● DePura® and Gelicart® /Trivance® in VMS/Nutraceuticals (1) IMS OTC Market MAT August 2012 (2) Vitamins, Minerals & Supplements 59
  60. 60. Strategic Investment Focused on Regional Brands andLocal Heroes Pain Gastro- Cough & VMS/Nutra- Feminine Others intestinal Cold ceuticals, Hygiene ‘Well-Being’RegionalBrands Skin care SINUBERASE Eyes careLocal Calmidol OthersHeroes PAX Local Enterolyte BioGrip Brands Adermicina 60
  61. 61. - The Champion in Brazil Keeps Growing● Top selling brand(1) in the pharma market in Brazil since 2006 ● #1 out of >11,500 registered brands● Key contributor to Sanofi’s revenue base in Brazil ● >€100m sales expected in 2012● Competitive presence at the Point sales (in €m) of Sale key for continued growth● Potential to leverage brand by using U.S. Chattem portfolio (1) IMS MIDAS, August 2012 61
  62. 62. &A Successful CHC Growth Story in LatAm ● “Intimate Hygiene” : a new category and with low household penetration One Brand Equity ● Sustainable growth ● High consumer loyalty to established products with high brand recognition ● Low price sensitivity ● Brand not subject to patent cliff or impact from generics ● Long duration asset ● #1 category brand in ten LatAm countries(1) ● Growth of >40% expected in 2012 ● Geographic expansion ● DTC and brand LCM LatAm Brazil (1) IMS MIDAS, August 2012 (2) Direct-to-consumer 62
  63. 63. - Innovation and Growth in the Categoryvia Geographical Expansion in LatAmin €m Q4 2012 Launch in Brazil Launch in Argentina Life-cycle Launch in Launch in management, Venezuela, Peru, Ecuador, Introduction of Colombia, Uruguay, capsules Launch Paraguay Central America in Mexico ● Strong relationship and brand equity with physicians and patients ● Physician and DTC educational program ● Expansion through regionalization strategy ● Currently launched in >10 countries ● Balanced high double-digit growth across all countries ● Growth of >50% in Latin America expected in 2012 63
  64. 64. DePura® - A New CHC Brand Launched by Sanofiin the Brazilian Vitamins Market ● Regulatory status of a food supplement and promoted as an ethical medicine ● Developed locally by Sanofi Brazil ● Manufactured in Suzano facility ● Launched in Brazil in 2011 and reached market leadership in July 2012(1) ● DePura® kids launched in March ● Launch in LatAm planned for 2013 ● ~100m consumers aged 50+ are targets for vitamin D supplementation (1) IMS PMB July 2012 64
  65. 65. Strategic Focus Has Driven Performance of Sanofi’s CHCGrowth Platform in LatAm Strategic Priorities Revenue Base in Latin America in the CHC market Expected to Double Over 3 Years in LatAm >2x Boost sales of €418m existing brands Drive regional expansion €242m Launch innovations and new variants 2009 2010 2011 2012e 65
  66. 66. Sanofi is #1 in Consumer Healthcare in LatAm(1) ●1 Broad portfolio of well-established brands with name recognition at the country level (“local heroes”) ●2 Execution of regionalization strategies replicates business model in multiple markets (“regional brands”) ● Strong Brand Equity ● Professional Endorsement by Physicians ● Execution at the Point of Sale ●3 Steady flow of new products in high growth CHC categories (1) IMS MIDAS, August 2012 66
  67. 67. DiabetesFernando SampaioGeneral Manager, Sanofi Pharma, Brazil 67
  68. 68. AgendaThe Diabetes Market in Latin America and BrazilSanofi - A Leader in DiabetesBroadening Access with A Patient Centric Approach 68
  69. 69. Diabetes is a Large Growth Opportunity in LatAm Adults with diabetes in Latin America(1) 36m Patients undiagnosed in Latin America(2) ~45% Percent of patients not achieving glycemic control target values in Latin America(3) >70% Expected CAGR growth of diabetes market between 2011 and 2015(4) 25% Expected size of Latin America diabetes market in 2015(4) €2.55bn (1) IDF. Diabetes Atlas 5th Edition, 2011 (2) Pramparo P et al. Prevention and Control (2006) 2, 149–157 (3) Lopez Stewart G et al. Pan Am J Public Health 22(1), 2007 69 (4) Internal Data (IMS projection)
  70. 70. Diabetes Prevalence is Rapidly Growing in LatAm● Expected growth of diabetes Diabetes Prevalence(1) prevalence in LatAm is significantly higher than the U.S. or Europe +22%● Patients are predominately treated +58% 64m with first generation therapies +36% 56m● Lifestyle of middle class changing 51m 53m (i.e. increasingly sedentary, diets including fast food) leading to higher diabetes prevalence 38m 36m● Health Authorities focus on chronic diseases, prevention programs and treatment (1) IDF. Diabetes Atlas 5th Edition, 2011 70
  71. 71. 20 Million Diabetic Patients Expected in Brazil by 2030● Aging population with increased Brazil: Number of Diabetic Patients(1) incidence of lifestyle related diseases 19.6m● Market is largely out-of-pocket and for high-end treatments● Increased purchasing power of 12.5m growing middle and low income classes● Treatment of chronic diseases is a priority of the Health Authorities ● Glibenclamide and NPH are provided free of charge through “Farmácia Popular” 2011 2030e (1) IDF Diabetes Atlas 5th Edition , 2011 – Country Estimates Table 71
  72. 72. Other LatAm Markets Also Hold Sizable Potential Mexico Colombia ● 10.3m type 2 diabetes patients(1), one of ● Healthcare reform covers ~90% of the the highest prevalence rates in LatAm population ● Low rate of insulinization (<10%), low ● Analogue insulins now reimbursed on average daily dose and 95% of patients basic formulary, increasing insulin usage not at treatment goal(2) ● Sanofi is increasing investment by ~50% ● Innovative approach: Sanofi integrated with a focus on patient education solutions program proposed to the gov’t Venezuela Argentina ● Government increasing coverage ● Government programs offering last reaching ~50% of the diabetic population generation diabetes therapies & devices ● Diagnosis and treatment is increasing ● All patients are reimbursed for insulin due to social programs treatment from HMOs based on protocols and local legislation for diabetes ● Sanofi is increasing educational programs for GPs and at hospitals (1) IDF Diabetes Atlas 5th edition, 2011 (2) ENSANUT 2006. salud pública de méxico. 2010 (52) suppl 1:S19-S26 72
  73. 73. Basal Insulins Are the Largest and Fastest GrowingInsulin Segment in LatAm Insulin Market Share by Type (Value) Latin America(1) Brazil(2) Market Share (%) Market Share (%) Growth vs. prior year (%) Growth vs. prior year (%) 14% 15% +16% +23% 5% -4% 14% +23% 72% 80% +27% +16% Basal €459m market size(1) €222m market size(2) Premix Short-acting (1) MAT IMS MIDAS June 2012; Retail + Non-Retail (2) MAT IMS August 2012; Retail + Non-Retail 73
  74. 74. AgendaThe Diabetes Market in Latin America and BrazilSanofi - A Leader in DiabetesBroadening Access with A Patient Centric Approach 74
  75. 75. Sanofi: A Track Record of Strong Growth in Diabetesin LatAm Diabetes LatAm Sales (€m) ● LatAm Diabetes sales in 2012 228 (+35%) 186 (+26%) expected to approach €300m and grow more than 20% at CER ● Fastest growing markets(1) ● Mexico (+33% at CER) ● Colombia (+67% at CER) ● Venezuela (+73% at CER) ● LatAm Lantus® sales in 2011 were €176m, up 35% at CER ● Lantus® is #1 product for Sanofi in LatAm 2010 2011 2012 (1) Based on 9M 2012 results 75
  76. 76. Lantus® is the Cornerstone of our Diabetes Franchise andour LatAm Presence is Well-Diversified Sales Split by Product(1) Sales Split by Country(1) % of Sales % of Sales Venezuela Others(2) Brazil 13% Argentina 23% 11% 29% 10% Colombia 77% 11% 26% Lantus® Others Mexico (1) Based on 9M 2012 reported sales (2) Amaryl®, Apidra®, Insuman® 76
  77. 77. Sanofi: The Leader in Diabetes in LatAm (1)● Sanofi has a leading share of the LatAm Diabetes Sales: Market Share diabetes market in LatAm● Broad leadership across LatAm markets(1): 21.1%● #1 in Mexico (27% share)● #1 in Venezuela (22% share) 15.3%● #2 in Brazil (20% share)● Provide integrated patient solutions treating multiple patient 9.1% comorbidities 8.6% 8.5% Merck KGaA● Sanofi diabetes has solid company image: Sanofi Merck Novo Lilly● #1 ranking among endocrinologists and diabetologists in Brazil(2) (1) Year-to-date IMS MIDAS Data, Quarterly (as of June); Retail + Non Retail (2) Source: Diabetes Image and Company Performance (180 physicians) 77
  78. 78. Sanofi Has the Highest Insulin Market Share in LatAmand Brazil Insulin Market Share by Company (Value) Latin America(1) Brazil(2) Market Share (%) Market Share (%) Growth vs. prior year (%) Growth vs. prior year (%) 19% 19% +28% +44% 40% 42% 2% nm +25% +34% 35% +14% 39% -3% Sanofi 3% +30% Novo Lilly Others (1) MAT IMS MIDAS June 2012; Retail + Non-Retail (2) MAT IMS August 2012; Retail + Non-Retail 78
  79. 79. Sanofi: A Strong Heritage of Diabetes Solutions in Brazil 1972 1996 2000 2004 2010Daonil ®glibenclamida ● Launched ● Launched ● Completed ● Launched 46 ● Launched ● Unique patient Daonil®, the Amaryl®, leader Insuman® and in licensing Lantus®, a novel support leading in the OAD pushed the agreementsccc basal insulin & programs: 24/7 sulphonylurea market from market towards became the call center, until 1999 1999 to 2002 devices leading insulin educators, etc. 79
  80. 80. AgendaThe Diabetes Market in Latin America and BrazilSanofi - A Leader in DiabetesBroadening Access with A Patient Centric Approach 80
  81. 81. Patients’ Purchasing Power Limits Private Market Growth Income per Household Brazil (households in millions) ● Outpatient drugs are out-of- Monthly pocket expenses in Brazil 2004 2009 Change Income ● Patients generally allocate 3% to High 3.3 4.2 10% of their income to +1.0 > €2.2 k pharmaceutical spend(1) Middle ● <10% of the population can afford 22.3 29.3 +7.0 the average cost of Lantus® €0.4 - 2.2 k therapy(1) Mid-Low 13.8 14.0 ● Economic growth is increasing the +0.2 €0.2 - 0.4 k affordability of medications but access challenges remain Low < €0.2k 11.1 9.3 -1.8 Source: IBGE (PNAD 2009/2004), Analysis Primeira Consulta Euro = 2,3 Reais; 2004 income adjusted by inflation to 2009 figures (1) Internal research 81
  82. 82. Lantus® is Not Sufficiently Accessible in Brazil Brazil: Lantus® Share By Income Class(1,2)● Insulin analogues are priced at a 19% premium● Lantus® market share is concentrated in income class “A”● Main objective is to expand access Target Groups to the middle class ● Target groups “B”, “C” and “D” 4% represent nearly half of insulin 3% patient population 1% 1% E < 1,0K D 1,0 - 2,0K C 2,0 - 3,0K B 3,0 - 4,5K A > 4,5K (1) Source: Vidalink analysis / Primeira Consulta; patient share by volume (2) A = >4,500 BRL per month; B = 3,000 to 4,500 BRL per month; C = 2,000 to 3,000 BRL per month; D = 1,000 to 2,000 BRL per month; 82 E = < 1,000 BRL per month
  83. 83. “Alcance” Project Expands Lantus® Access in Braziland Supports Volume Expansion● Selectively targets patients that cannot afford Lantus® therapy● Individual screening process adjusts benefit to each patient’s need and income● Reduces the overall treatment cost for diabetes patients● Leverages multiple partners and Sanofi’s broad portfolio● Offers patients a comprehensive solution treating diabetes and other co-morbidities 83
  84. 84. Sales in Brazil Accelerated following Implementationof Alcance Lantus® Sales Growth: Private Sector (€m) 33% Alcance 27% Implemented 24% 22% 13% 0 2007 2008 2009 2010 2011 A key growth driver for Lantus® in Brazil 84
  85. 85. Delivering More Value to Patients in Brazil Insupen needle aims to improve patient satisfaction; Sanofi has a broad distribution 2012 On the market system and strong customer service ® Brazil has key competitive advantages to leverage the opportunity, including Alcance 2013 Anticipated launch and superior share of voice with physicians Sanofi will bring the most integrated and complete offering for diabetes treatment in 2013 Anticipated launch Brazil including disease management Diabetic foot ulcer is a common complication of diabetes; Hidrastar is a 2013 Anticipated launch moisturizing cream for daily use A new “pen” device developed exclusively 2014 for the emerging markets Anticipated launch 85
  86. 86. An Integrated Solution Provider for Diabetic Patients Core Brands Devices/Services ● Lantus® ● BGM(1) ● Amaryl® ● SoloSTAR Patient Value ● Apidra® ● Moisturizer(1) Value Market ● Lyxumia®(2) ● Call Center ● Educators ● Other Services Tailored Offering Volume ● Alcance Market Patient ● All-Star pen(1) Access ● Insuman®(1) ● Generics (1) Product is not yet commercially available in Brazil (2) In-licensed from Zealand Pharma A/S. Lyxumia® is the proprietary name submitted to health authorities for investigational GLP-1 RA lixisenatide. Lixisenatide is not currently approved or licensed anywhere in the world. 86
  87. 87. Key Pillars to Fuel our Diabetes Growth in LatAm 87
  88. 88. GenericsHeraldo MarcheziniSenior Vice President, Latin Americaand General Manager, Brazil 88
  89. 89. Agenda Generics - A Fast Growing Market Segment Medley - A Major Player in the Generics MarketMedley’s Strategy for Continued Strong Profitable Growth 89
  90. 90. Generics Are a Fast Growing Segment in the LatAmPharmaceutical Market (1) ● Drivers of generics market growth: LatAm Pharmaceutical Sales (in €bn) ● Lack / loss of exclusivity of patented originator drugs ● Government expenditures providing access to medicine and coverage to a broader population ● Aging population and increased prevalence of chronic diseases ● “Branded Generics” represent majority of generic market in value ● Further acceleration of generics market expected ● Strong national manufacturers (1) IMS Midas MAT Q2 2012 (Retail only, Pharmacy Purchase Price (PPP) not included) 90
  91. 91. Continued Leadership in the Generics Market is Key toour Growth Strategy in LatAm Sales in €bn in 2012(1) Expected growth 2012-17(2) (CAGR) Total Market Generics +13% +16% +5% +8% +25% +31% +19% +20% +8% +11% +3% +4% (3) LatAm generics market expected to reach ~€35bn in 2017 (1) IMS MIDAS MAT Q2.2012 (Retail only, PPP not included) (2) IMS Prognosis and internal estimates (3) International Nonproprietary Names 91
  92. 92. The Brazilian Generics Market OffersTwo Distinct Business Models 1 2 Pure Generics “Similares” Rx Originator INN Branded Generics • Mandatory % below • High Reference Price • Equivalent to Generics Price • Low discounts branded reference price • Low discounts • High discounts • Sales Channels • Field force Investment, • Field force • Investment at POS(1) • Branding, Sampling Promotion • Concept selling • Added Value • Pharmacy presence (1) Point of Sale 92
  93. 93. Agenda Generics - A Fast Growing Market Segment Medley - A Major Player in the Generics MarketMedley’s Strategy for Continued Strong Profitable Growth 93
  94. 94. - A Powerhouse for Affordable Medicines (1) ● Total sales of €370m in 2011 ● ~1,800 employees ● Headquartered at Campinas site in São Paulo, Brazil ● Strong operations and market reach ● ~550 sales representatives ● Worldclass industrial facilites ● ~1,000 employees in Industrial Affairs ● Customer service to 25,000 pharmacies and 80,000 physicians ● Generics INN, Branded Generics (1) Generics sales in LatAm were in total €441m in 2011 (of which Medley was €370m) 94
  95. 95. A Highly Competitive Portfolio Alignedwith Market Demand in Brazil Medley‘s portfolio includes 65 out of 77 Medley leads the market owning 7 out of high-volume generics molecules(1) the top 10 generics molecules in value(2) Total Generics Total Generics Rank Molecule Total Market Market market market Market Leader Share 77 molecules BRL 77 account for (in m) 65 molecules ~80% of molecules 1 Losartan 71.7 19.6% Generic market volume 2 Sildenafil 36.6 26.3% 108 ~80% 3 Pantoprazole 33.0 51.3% molecules volume 4 Omeprazole 29.6 40.9% 5 Enalapril 29.2 28.0% 313 6 Simvastatin 27.3 35.2% molecules 7 Amoxicillin 21.2 27.5% 8 Clopidogrel 21.1 30.7% ~20% 9 Metamizole Sod. 19.4 46.9% volume 10 Atenolol 18.1 35.7% (1) IMS MAT September 2012 (2) IMS September 2012 in local currency – generic market 95
  96. 96. High Exposure to the São Paulo State Market ProvidesOpportunity for Geographic Diversification Market Share per Region(1) Volume Split by Region in Brazil(1) (in volume) 24% 25% 20% São Paulo State 22% São Paulo State, 41% (1) IMS YTD August 2012 (units) 96
  97. 97. A Compelling Presence at the Point-of-Sale● Exploit selling space to raise awareness for preferred brand● Wealthier middle class asking for increased number of product presentations● Favorable purchasing conditions at modern pharmacy chains● Secure profitability through returns from trade marketing investments 97
  98. 98. Agenda Generics - A Fast Growing Market Segment Medley - A Major Player in the Generics MarketMedley’s Strategy for Continued Strong Profitable Growth 98
  99. 99. - Consolidate Leadership Position in the Generics Market in LatAm 3 Strategic Levers for Future Growth in Brazil and LatAm Maintain leadership Broaden position in Extend geographic1 in volume market 2 Branded Generics 3 reach • Address growing demand • Expand in Branded • Enlarge business model from population segments Generics across LatAm markets • Middle class, Aging population • M&A(1)  Focus on high  Leverage existing  Generate synergies consumption strong image from Sanofi’s leading molecules position in LatAm (1) Genfar - The closing of the transaction is subject to certain conditions precedent and is expected to occur in Q1 2013 99
  100. 100. Esomeprazol - A Major Launch Success in 2012 Share of esomeprazol market in Brazil(1) ● Esomeprazol: a high volume moleculein k units ● Launch of generic version of Nexium® by Medley in July 2012 ● Medley rapidly expanding its unit share 12% 24% ● Medley achieved 29% market share of generic esomeprazol in September(1) 29% ● Medley’s esomeprazol is the #1 generic version in Brazil(1) (1) IMS PMB September 2012 100
  101. 101. Portfolio Expansion into Key Countries Across LatAm 25 countries with Medley’s products in Latin America 78 therapeutic classes 150 products in its portfolio, in over 500 presentations 645 dossiers prepared since LatAm platform was established in 2010 262 dossiers approved 101 101
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