By Mimosa Spencer Of DOW JONES NEWSWIRES PARIS -(Dow Jones)- The chief executive of French drug giant Sanofi-Aventis (SNY, SAN.FR) on Thursday sought to demonstrate how it will secure future growth despite looming revenue loss from expiring patents and after cutting back on internal research and development. "In general on our R&D front, we're still a work in progress," Sanofi CEO Chris Viehbacher said Thursday as the company showcased its diabetes and oncology pipeline at an investor presentation. The company has cut an estimated 30% of projects under development, Viehbacher said. The company said Thursday it signed a 10-year deal worth up to $2.2 billion with Princeton, N.J., contract research company Covance Inc. (CVD) for the outsourcing of research and development. It is "very easy to cut and restructure" but "it's a lot harder to rebuild," Viehbacher added, noting the company has one of the weakest pipelines of drugs under development. Sanofi will take different approaches to the fields of diabetes and oncology, two areas the company depends upon for future growth, Viehbacher said. In oncology, Sanofi is increasing its focus on Asia, outsourcing more of its projects, and concentrating on cancers affecting smaller populations. For the diabetes business, which operates in a market Sanofi predicts will be worth EUR50 billion in 2015 from a current level of EUR33 billion, the company has a global organization headquartered in Frankfurt. Sanofi has forged alliances with academic institutes and other companies to fill out its pipeline of new products, and will place new emphasis on medical devices as part of its offerings for diabetes treatment. Shares in Sanofi closed down 1.2% in Paris while the company's American shares were off 1.2% to $33.23. By Mimosa Spencer, Dow Jones Newswires; +33-1-40-17-1773; mimosa.spencer@dowjones.com
