Sanofi reports stronger rise in quarter

Source: Exec

Date :31/10/2007 09:56:50

French drugmaker Sanofi-Aventis a forecast-beating 9.1 percent rise in third-quarter profit on Wednesday helped by vaccines and cost cuts and raised its full-year 2007 outlook.

Net income increased nine percent to €1.85 billion, against expectations of 1.71 billion whilst sales -despite the negative impact of a strong euro against the dollar, rose 1.8 percent to €7.03 billion.

The world's third-biggest pharmaceuticals group also benefited from a recovery in U.S. sales of blood thinner Plavix which climbed 13 percent to €614 million in the quarter.

As a result, Sanofi raised its full-year outlook for 2007 earnings per share to around ten percent from around nine percent previously.

Strong sales

"I think the results are very superior to the consensus," pharmaceuticals head Hanspeter Spek(pictured) told analysts in a conference call. "A striking development has been the strong performance of vaccines."

Vaccines sales surged 49 percent in the quarter to €943 million, helped by earlier shipments of flu vaccines and strong demand for new cervical cancer shot Gardasil.

Third-quarter sales of Acomplia, Sanofi’s anti-obesity drug, recorded disappointing sales of €21 million in the third quarter.

Once touted as a potential $3 billion-a-year plus seller, the drug’s shares now trade on less than eleven times forecast 2008 earnings.

October 31 2007