Sanofi To Take $118.5-Million Charge for Dengue Vaccine
Sanofi plans to take a $118.5-million charge related to Dengvaxia, the company’s vaccine for dengue fever, following an analysis of long-term clinical trial data, which found differences in vaccine performance based on prior dengue infection.
Based on up to six years of clinical data, the analysis evaluated long-term safety and efficacy of Dengvaxia in people who had been infected with dengue prior to vaccination and those who had not. Sanofi says the analysis confirmed that Dengvaxia provides persistent protective benefit against dengue fever in those who had prior infection. For those not previously infected by dengue virus, however, the analysis found that in the longer term, more cases of severe disease could occur following vaccination upon a subsequent dengue infection.
Dengvaxia is currently indicated in most of the countries for individuals nine years of age and older living in a dengue-endemic area.
Taking this information into account and expected future sales, Sanofi will record a charge reflecting depreciation of inventories as well as accelerated depreciation of some tangible and intangible assets in its fourth quarter 2017 results. The impact on the business net income is still under assessment, but it is expected to be in the range of EUR 100 million ($118 million) after tax.