FACTBOX-Key facts about Sanofi, looking to buy Genzyme
PARIS, Sept 29 (Reuters) - Sanofi-Aventis (SASY.PA) is
mulling its next move after U.S. biotech Genzyme GENZ.O, which
specialises in rare diseases, in late August rejected the French
drugmaker's $18.5 billion offer as being too low.
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Below are some key facts about Sanofi, the world's fourth-largest drugmaker by sales according to IMS Health.
HISTORY
Sanofi-Aventis is the product of numerous mergers and acquisitions. It became the world's third-largest drugmaker in 2004 when Sanofi-Synthelabo -- formed by merging subsidiaries of Total (TOTF.PA) and L'Oreal (OREP.PA) in 1999 -- bought Aventis.
Sanofi turned a page when it named Chris Viehbacher as chief executive at the end of 2008. He has been diversifying the group into areas like animal health and consumer health to deal with patent issues that will take out a third of sales between 2008 and 2013.
STRATEGY
Sanofi focuses on five growth platforms -- emerging markets, vaccines, diabetes, consumer healthcare and innovative products.
Viehbacher has said Sanofi would hunt for deals of up to $20 billion and steer clear of mega-mergers.
Sanofi has done more than 50 deals since 2009, spending about 9 billion euros on drug development deals and acquisitions. Several acquisitions added 339 million euros to 2009 sales and 372 million in this year's first half while expanded growth platforms are also helping to offset sales losses from patent issues.
TOP PRODUCTS
Name Disease 2009 sales in euros
Lantus diabetes 3.080 bln
Lovenox blood thinner 3.043 bln
Plavix blood thinner 2.623 bln
Taxotere cancer 2.177 bln
Aprovel blood pressure 1.236 bln
Eloxatin cancer 957 mln
Multaq heart rhythm 25 mln*
Vaccines 3.483 bln
* Multaq has been flagged as a drug that could make at least $1 billion a year. It won U.S. marketing approval in July 2009.
PATENT ISSUES
About a third of Sanofi's 27.6 billion euro ($35.06 billion) sales in 2008 will be lost through to 2013 to patent issues.
- Eloxatin - Sanofi reached a settlement in the United States with several generic drugmakers, like Sandoz (NOVN.VX) and Teva Pharmaceuticals (TEVA.TA) TEVA.O, banning them from selling their version from June 30 this year until Aug. 9 2012.
Generics of the colorectal cancer drug began arriving last year in Europe and the United States.
- Lovenox - the bloodthinner's patents were no longer valid but until the FDA's approval of Sandoz's generic in July, its biological nature had shielded it from generics. Biotech drugs, based on living cells, are harder to copy than chemical drugs.
- Plavix - the world's second biggest-selling drug already faced a setback in 2006 when Apotex briefly flooded the U.S. market with its copies but had to stop after a court order.
In Europe, Plavix generics have been available since the second quarter of last year. The Plavix patent expires in May 2012 in the United States and in February 2013 in Europe.
- Taxotere, which treats five cancer forms including breast cancer and non-small cell lung cancer, will lose its patent in November this year in the United States and Europe.
- Blood pressure treatment Avapro will go off-patent in February 2012 in the United States and in August 2012 in Europe.
- Sleeping pill Ambien CR lost its patent in March 2009.
RECENT APPROVALS
Prostate cancer treatment Jevtana was approved in June through a U.S. health regulator priority review.
FDA PRIORITY STATUS
- Sanofi Pasteur's dengue vaccine, to begin late stage trials end 2010, got U.S. priority review status in June.
- BSI-201 which seeks to treat triple negative breast cancer, won fast-track status in December last year.
RESEARCH AND DEVELOPMENT
In 2009, Sanofi spent 4.6 billion euros on R&D. Sixty percent of the company's portfolio consists of biological products and vaccines, and more than half of its compounds are from external research, Sanofi said in its annual report.
Sanofi has overhauled its drug pipeline, ditching about a quarter of its drugs and acquiring new ones. It has 52 drugs under development, of which 16 are in final clinical tests or have been submitted for marketing approval.
It suffered a pipeline setback last week when Temusi or NV1FGF for limb ischemia failed in a late-stage trial. Sanofi said it is evaluating all options for the drug candidate.
MAIN EVENTS THIS YEAR
- Sanofi oncology and diabetes seminar on Sept. 30 in Paris.
- Teriflunomide in multiple sclerosis -- Phase III data will be presented at the ECTRIMS in Gothenburg, Sweden, in October.
- Oct. 28 quarterly earnings
FINANCIAL OUTLOOK
Even with patent issues hampering growth, Sanofi expects its sales and business earnings per share in 2013 to be at least at the same level as in 2008, excluding bolt-on acquisitions.
For this year, Sanofi expects business EPS to drop by as much as 4 percent at constant exchange rates, taking into account Lovenox generics, U.S. healthcare reforms and government measures in Europe to contain public deficits. (Editing by David Cowell)
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