Sanofi-Aventis 4Q profits fall on generic competition

02/13/07 - newratings.com

LONDON, February 13 (newratings.com) – Sanofi-Aventi SA (SAN2-EUR) Tuesday reported a 4.6% fall in its fourth-quarter profits due to a decline in the sales of several of its drugs following the launch of several generics.

During the October-December period, Sanofi-Aventis posted net profits of €1.38 billion, down from €1.44 billion posted in the year-ago period. The drugmaker’s quarterly sales increased 5% to €7.36 billion, from €7.01 billion posted in the year-ago period. Sanofi-Aventis said that its full-year adjusted net income rose 11.1% to €7.04 billion in 2006, while sales were up 3.9% to €28.37 billion, from €27.31 billion in the previous year.

The sales of the company’s best selling drug, Plavix, were negatively impacted by the US launch of a generic version by Apotex. Although the sale of the generic version was halted through a court order, Plavix sales are likely to remain subdued for few more months. Sanofi Aventis has already lost the market exclusivity for selling its cancer drug, Eloxatin, and expected to face generic competition for Ambien, another of its drugs.

Sanofi-Aventis Monday announced that the US regulators are expected to take another three months to review the company’s diet pill, Acomplia.