Sanofi 3rd-qtr 2011 net profit falls 3%, hit by generic competition

Sanofi’s (Euronext: SAN) group sales for the third quarter of 2011 came in at 8.75 billion euros ($12.08 billion), up 5% on a reported basis (+10.1% at constant exchange rates), slightly below consensus estimates of 8.9 billion euros and hit by generic competition on three of its drugs.

However, the French drug major said that, excluding Genzyme, the $21.1 plus CVR acquisition of which was completed this spring, revenues were stable despite 471 million euros of sales lost due to generic competition compared with third-quarter 2010. Business net income (non-GAPP) was down 3% (+4.1% at CER) to 2.4 billion euros with business earnings per share falling 5.3% (+1.6% at CER) to 1.79 euros. This beat the 2.33 billion-euro average estimate of 16 analysts compiled by Bloomberg.

The group continues to expect 2011 business EPS to be 2% to 5% lower than 2010 business EPS at CER, barring major unforeseen adverse events. In terms of outlook, Sanofi also noted that five new products were recently submitted for marketing approval: Lyxumia (lixisenatide) in the European Union, Aubagio (teriflunomide) and Zaltrap (aflibercept) in the USA; Visamerin/Mulsevo (semuloparin) in the USA and EU; Kynamro (mipomersen) in the EU.