Sanofi-Aventis 2007 profits rise a modest 1%; sales impacted by exchange rates

French drug major Sanofi-Aventis has posted fourth-quarter and full-year 2007 results much in line with expectations. Sales for the three-month period were 5.91 billion euros ($8.57 billion), down 6.0% on a reported basis, resulting in adjusted net income of 1.46 billion euros, up 6.2%, and earnings per share of 1.09 euros versus 1.02 euros in the like 2006 quarter. Notwithstanding the lackluster sales figures, investors reacted by buying the company's stock, the price of which advanced nearly 2.4% to 52.73 in early trading the day of the announcement, February 12.

For the full year, sales dipped 1% on a reported basis to 28.05 billion euros, with adjusted net income and EPS both rising 1% to 7.11 billion euros and 5.28 euros, respectively. Gross profit was down 1.4% at 21.64 billion euros. The weakening US dollar and the discontinuation of royalties on fipronil restricted growth in other revenues, despite a strong advance in US turnover of the group's blockbuster blood-thinning drug Plavix (clopidogrel), the drugmaker noted.

For the first time providing guidance, Sanofi-Aventis said that, barring major adverse events, it expects adjusted EPS (excluding selected items)for 2008 to grow at around 7%, based on constant 2007 euro/dollar parity.