Generics, including Plavix, and govt cost-cutting hit Sanofi-Aventis' 3rd-qtr results

France's Sanofi-Aventis, the world's third-largest drugmaker, posted disappointing third-quarter and nine-month 2006 results, with sales hit by the advent of generic competition for four of its products in the USA, including the blockbuster anti-platelet drug Plavix (clopidogrel; Marketletters passim), as well as health care cost curbs in France and Germany.

Net sales for the third quarter were 1.1% lower year-on-year at 6.9 billion euros ($8.78 billion), down 4.2% on a reported basis. Operating income fell 7.7% to 2.48 billion euros, adjusted net income was 11.6% lower at 1.70 billion euros and earnings per share fell 12.5% to 1.26 euros. For the nine months, sales increased 2.6% (3.5% on a reported basis), operating income advanced 4.3% to 7.35 billion euros, adjusted net income was up 15.8% at 5.66 billion euros and EPS rose15.0% to 4.21 euros.

Baring major adverse events, Sanofi-Aventis says it expects adjusted EPS growth of at least 2% for the full year, but admitted that it still does not know how much generic Plavix remains in the US supply chain after Apotex launched a version even though a court had ruled that the Canadian firm infringed the French group's patents.