Sanofi Profit Down as Diabetes Drug Sales Slip
July 29 2016 - 3:10AM
Dow Jones News
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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