Vaccines boost Sanofi-Aventis 1st-half but French/German reforms hit drug sales

French pharmaceutical major Sanofi-Aventis has raised its full-year 2006 guidance based on its first-half performance to earnings per share growth, barring major adverse events, of 12%, up from an earlier forecast of 10%.

Net sales reached 14.12 billion euros ($18.01 billion) for the six months, up 4.5% (+7.7% on a reported basis). The company, the world's third largest drugmaker, explained that, excluding the impact of generics of four products in the USA in the second half of 2005, turnover growth would have been 10.5%. Adjusted operating income rose 10.8% to 4.87 billion euros and EPS increased 32.9% to 2.95 euros, or 2.60 euros (16.1% higher excluding selected items (notably the gain on the disposal of Exubera (insulin [rDNA origin] powder for inhalation), which was sold off at the beginning of the year to its partner, US drug giant Pfizer, for $1.3 billion.

The figures beat consensus forecasts and saw the firm's share price rise 1% to 74.20 euros in morning trading on August 2, the day they were released. Analysts at Lehman Brothers said all key products met or beat expectations, with particular strength from the blockbuster blood thinning drug Plavix (clopidogrel), Ambien (zolpidem) and Lantus (insulin glargine).