Sanofi 2nd-qtr 2011 net profit plunges but sales grow 6.9% boosted by Genzyme

French drug major Sanofi (Euronext: SAN) posted a decline of 13.2% (reported basis; -7% at constant exchange rates) in business (adjusted) net income to 2.15 billion euros ($3.09 billion) for the second quarter of 2011, with earnings per share down 13.7% (rb) at 1.64 euros. Net sales, however, grew 6.9% (CER; +0.5% rb) to 8.35 billion for the three month reporting period, boosted by the acquisition of US biotech firm Genzyme. However, net profit nose-dived 40.9% to 1.01 billion euros, battered by generic competition.

Excluding Genzyme, sales were down 4.0% reflecting 778 million euros of sales lost due to generic competition compared with the like 2010 quarter. Growth platforms grew by 9.5% and including Genzyme accounted for 65.2% of total sales. Genzyme’s sales were 796 million, up 16.0% year-on-year.

Commenting on the group’s performance in the second quarter, Sanofi chief executive Christopher Viehbacher said: “As expected, the second quarter is the most challenging this year, given the level of generic competition. Against this, growth platforms continue to perform well and strong progress has been achieved in the integration of Genzyme and Merial.”