Sanofi 2nd-qtr hit by Plavix competition but group sales still up 6%

French pharma major Sanofi (Euronext: SAN) reported second-quarter 2012 financial results with net sales growing 6.2% (+0.4% at constant currencies) to 8.87 billion euros ($10.79 billion) and coming in ahead of consensus expectations of analysts of 8.69 billion euros.

Gross profit was 6.39 billion euros (+3.3%), but business net income dropped 9.6% (-17.6% at CC) to 1.94 billion euros and business earnings per share fell-9.8% (-17.7% CC) to 1.48 euros, beating consensus forecasts of 1.40 euros. For full year 2012, the company expects business EPS to be 12% to 15% lower at constant exchange rates than 2011.

Commenting on the group's performance, Sanofi chief executive Christopher Viehbacher said: "This quarter, we faced the anticipated loss of exclusivity of Plavix [clopidogrel] and Avapro [irbesartan] in the USA. The strategy initiated at the end of 2008 focusing on the development of our growth platforms2, coupled with continuous tight cost control and value-creating acquisitions allowed Sanofi to limit the impact on business EPS1. In addition, we made progress in advancing our pipeline with the submission of Lemtrada (alemtuzumab) to the US and EU regulatory agencies as well as the recent initiation of a comprehensive Phase III program for an Anti-PCSK-9 monoclonal antibody."