Loss of exclusivity and EU austerity measures hit Sanofi
Net income falls by 4.5% in first half
Sanofi reported net sales of €17.38bn, up 3.6% at constant exchange rates, in the first half of 2012. Net income fell 4.5% at constant exchange rates to €4.39bn.
The French pharmaceuticals firm said this reflected a positive contribution by Genzyme, but also the negative effects of generics competition, mainly to Lovenox, Xatral and Taxotere in the US, and Taxotere, Plavix and Aprovel in Western Europe. Sanofi said the ending of the Copaxone co-promotion agreement with Teva, the sale of the Dermik business in July 2011, and austerity measures in the European Union also had an impact on the results.
Net sales for pharmaceuticals rose by 4% at constant exchange rates to €14.8bn to 30 June.
Flagship products include diabetes drug Lantus, which saw sales increase 16.8% to €2.35bn; cancer drug Eloxatin (+61.9% to €759m); and former Genzyme Fabry’s disease drug Fabrazyme (+86.7% to €121m).
First half sales for vaccines rose 1.5% to €1.4bn. Sales of seasonal influenza vaccines reached b167m to 30 June compared with €158m in the first half of 2011.
Emerging markets reported first-half sales of €5.45bn.
In the US, sales increased 8.8% to €5.39bn, while Western Europe declined 6.4% to €4.36bn. First-half sales in Japan increased 0.9% to €1.53bn.
Sanofi’s chief executive Christopher Viehbacher said ‘tight cost control and value-creating acquisitions’ had allowed the firm to limit the impact of the anticipated loss of exclusivity of Plavix and Avapro in the US.
Viehbacher also said the firm had made progress in advancing its pipeline with the submission of multiple sclerosis drug Lemtrada in collaboration with Bayer Healthcare to the US and EU regulators, as well as the initiation of Phase III trials for an anti-PCSK-9 monoclonal antibody in collaboration with Regeneron.