PARIS-—French drugmaker Sanofi SA on Friday reported a fall in second-quarter net profit, hurt by dwindling diabetes U.S. sales and adverse currency moves but said it still expected to meet its profit target this year.

The Paris-based drugmaker said net profit declined by 11% to €1.16 billion ($1.29 billion) for the three months through June from €1.3 billion a year earlier.

Business net income, the company's term for adjusted income excluding the impact of acquisitions and divestments, fell 9% to €1.68 billion, just slightly below analysts' expectations of €1.7 billion. Sanofi's total sales declined 5% to €8.14 billion.

The company said it still expected its business earnings per share to remain "broadly stable" in 2016 at constant exchange rates, "barring unforeseen major adverse events."

Sanofi's earnings this quarter reflect continuing pricing pressure in the U.S. on its top selling medicine Lantus, as the French drug maker scrambles to replenish its new drugs pipeline.

Diabetes drug sales, which account for about 20% of the company's revenue, fell 5% to €1.6 billion in the second-quarter, hurt by lower sales of its insulin drug Lantus.

However, Genzyme, Sanofi's biotech unit, posted a 18% jump in revenue to €1.25 billion, boosted by sales of multiple sclerosis treatments Aubagio and Lemtrada. Vaccines sales were also up 3% to €797 million, while sales of consumer health care products fell 10% to €800 million.

Sanofi has been in pursuit of U.S. biotech Medivation for months in an attempt to rebuild a competitive position in a hotly tipped market.

Medivation, a Nasdaq-listed company that focuses on hard-to-treat cancers, markets one prostate-cancer therapy, Xtandi, and has two other oncology assets in clinical development.

On July 5, the San Francisco firm finally opened the door to potential takeover talks after months as a reluctant target.

But Sanofi could face some competition. Medivation has signed confidentially agreements with several suitors. In addition to Sanofi, Pfizer Inc. and Celgene Corp. are among the companies that have signed confidentiality agreements, according to people familiar with the matter.

Write to Noemie Bisserbe at noemie.bisserbe@wsj.com

(END) Dow Jones Newswires

July 29, 2016 02:55 ET (06:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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