UPDATE 1-Sanofi to cut 927 jobs in France, most in sales

(Writes through, adds background, analyst comment)

PARIS Oct 2 (Reuters) - Sanofi-Aventis SA (SASY.PA) is planning to cut 927 jobs in France, of which 817 are in sales and the remainder among its headquarters staff, the French drugmaker said on Thursday.

The job cuts took into account new challenges such as the rapid growth of competition from cheaper generic drugs and pressure on drug prices, it said in a statement.

Sanofi's statement confirmed what a representative of French trade union CFDT had earlier told Reuters. Sanofi said it aimed to limit forced job cuts, giving staff opportunities to look for alternatives.

Sanofi employs around 28,000 in France, of which 2,200 are sales representatives. Worldwide it employs 100,000. The group had already said in June it was considering 700 to 800 job cuts in its home country.

"Everybody in the industry is currently looking at costs. I wouldn't rule out this (job cuts) is the first of many rounds," WestLB analyst Oliver Kaemmerer said.

In the past two years Sanofi has been gradually scrapping jobs in North America and Europe where several of its best-selling drugs, such as blood thinners Lovenox and Plavix and cancer treatment Eloxatin, are being challenged by drugmakers seeking to sell cheaper copies.

Like many of its competitors, Sanofi faces pressure on prices of its drugs while its drug development pipeline has yet to produce new medicines viable for marketing.

Earlier this week Britain's GlaxoSmithKline (GSK.L) said it was planning to cut up to 850 research and development jobs to improve its productivity.

Sanofi shares rose 1.8 percent to 49.89 euros by 0947 GMT, against a 1.1 percent rise in the blue chip CAC 40 index .FCHI. (Reporting by Noelle Mennella; Editing by David Holmes)