Negative Bourse reaction to Sanofi's Acomplia delay

The Paris Bourse reacted negatively to the news from the USA of a Food and Drug Administration "approvable" letter for Sanofi-Aventis' anti-obesity/smoke cessation drug rimonabant (trade name for the first indication) Acomplia (see page 19). The company's share price fell nearly 3% to close at 71.70 euros - the sharpest drop in the list of top companies, the CAC 40.

Credit Suisse has said that conditional approval of the drug for the treatment of obesity could mean a brief delay and simple discussions with the FDA on the issue of the final use of the drug. It could, however, mean a delay of several months if the agency calls for more trials. The presentation of Sanofi-Aventis' annual results, on February 24, therefore appears critically important to Credit Suisse as a chance for the company to clarify FDA demands and to indicate some timetable to resolve the problems.

Other analysts, including CM-CIC Securities, expect a delay of several months on the obesity indication. CM-CIC said this would match the classic FDA delay to review extra data or further analysis from Sanofi-Aventis. Morgan Stanley has remained positive on the stock, noting that the market is significantly underestimating the core of Sanofi-Aventis' pharmceutical activity apart from Acomplia and Plavix (clopidogrel).