Sanofi Q1 oper profit falls 7 pct, keeps targets
PARIS (Reuters) - French drugmaker Sanofi-Aventis (SASY.PA) on Wednesday posted first-quarter net sales down 3.3 percent and operating profit down 7.2 percent, hit by generic rivals and a weak dollar, but maintained its outlook.
Net sales fell to 6.937 billion euros ($10.81 billion), down 3.3 percent on a reported basis and down 0.8 percent on a comparable basis.
Current operating income fell 7.2 percent to 2,522 billion euros. Excluding the effect of exchange rates, the decrease was about 1 percent, the company said.
Sales had been expected to fall around 4 percent to 6.877 billion euros and operating profit by 12 percent to 2.422 billion, hit in part by generic competition to sleeping pill Ambien, according to median analyst forecasts compiled by Reuters Estimates.
Adjusted net income excluding selected items came in at 1.883 billion euros, or 1.43 euros per share.
After minority interests, net profit fell 12 percent to 1.863 billion or 1.41 euros per share, against a forecast 1.834 billion.
Sanofi said it was maintaining its forecast of around 7 percent in adjusted earnings per share growth in 2008.
Competition in the United States took a toll on sales of sleeping pill Ambien, which fell 62 percent, and cancer drug Eloxatin suffered a 6 percent drop in sales due to competition in Europe. But blood-thinner Plavix saw sales rise 19 percent.
Excluding the impact of the introduction of generics of Ambien in the United States and Eloxatin in Europe, the top 15 products would have achieved growth of 12.2 percent, Sanofi said.
The strong euro and tumbling Ambien sales pushed U.S. revenues down 2.8 percent on a comparable basis. In Europe sales fell 0.7 percent to 3.1 billion euros.
Net debt was stable at 4 billion euros.
"Barring major adverse events", Sanofi expects 2008 full-year adjusted earnings per share excluding selected items to grow around 7 percent, calculated at a constant 2007 euro/dollar rate of $1.371, the company said.
Blood thinner Plavix is showing rapid growth compared to 2007, following the disappearance of a generic form of the drug in the United States.
Sanofi's U.S. partner Bristol-Myers Squibb (BMY.N) last week reported a 39 percent jump in its first-quarter Plavix sales.
Thrombosis drug Lovenox, the group's top-seller, defied the currency drag with sales up 21.5 percent.
Analysts however say Lovenox could face generic competition within the next couple of years and Eli Lilly's (LLY.N) new drug prasugrel is set to compete for business with Plavix.
Sanofi reported positive results from GEMS, the third Phase III trial evaluating eplivanserin in sleep quality. It plans to file for approval in the second half of 2008.
(Reporting by Noelle Mennella and Tim Hepher; Editing by Erica Billingham)