Profit at drugmaker Sanofi up 35 pct for 1st half

(AP) — Drugmaker Sanofi saw its net profit rise 35 percent in the first half of the year as it pushes into areas with long-term growth potential to off-set the expiration of profitable patents.

Strong growth in the Paris-based company's diabetes drug Lantus and a record year for flu vaccines sales helped drive earnings from January to June to €3 billion ($3.64 billion). Revenue for the period was €17.4 billion, up 8 percent from the same period last year.

Shares rose on the news when the Paris bourse opened, moving up 0.8 percent in early trading.

But the company was still cautious in its outlook for the year, saying that generic competition for its Plavix blood thinner and Avapro blood pressure drugs would cost it €1.4 billion in 2012. As a result, it still expects its core earnings, what it calls "Business EPS," to fall between 12 and 15 percent this year.

As the expiration of lucrative patents wipes out billions in annual revenue, is shifting its focus from blockbuster patented drugs to six growth "platforms" — areas with products with indefinite lifespans, not the typical 10 years before prescription pills get generic competition.

Those areas are vaccines, consumer health products, medicines for pets and livestock, diabetes treatments and testing supplies, biologic drugs for rare or complex disorders, and products for emerging markets — China, India, Brazil and other countries where a growing middle class is buying more medicine.

Many of those divisions posted strong gains in the first half of the year. Consumer health sales, for instance, were up 13.8 percent, while animal health revenue was up 5.9 percent and vaccines rose 7 percent. Sales in emerging markets were up 10.7 percent.

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Data firm sees 2011 drug sales rising 5-7 percent

Oct 07, 2010

(AP) -- Revenue from global prescription drug sales should increase 5 percent to 7 percent next year, reaching at least $880 billion, fueled by new drugs and rising sales in developing countries, according to drug data firm ...

Chipmaker ASML sees Q2 profit drop on sales fall

Jul 18, 2012

(AP) — ASML Holding NV, the largest supplier of manufacturing equipment to computer chip makers, says its net profit fell to €292 million ($359 million) in the second quarter from €432 million in the same period ...

Global spending on drugs to slow through 2016

Jul 12, 2012

(AP) — Growth in global spending on medications will slow markedly over the next four years due to a large number of new low-cost generic drugs coming to pharmacies in the U.S. and other developed countries, along with ...

Dell profit jumps as computer maker cuts costs

May 17, 2011

(AP) -- Dell Inc. said Tuesday that its net income for the latest quarter nearly tripled as the personal computer maker benefited from lower computer component costs and growth in some of its more profitable product lines.

Recommended for you

New approach to particle therapy dosimetry

13 hours ago

Researchers at the National Physical Laboratory (NPL), in collaboration with EMRP partners, are working towards a universal approach to particle beam therapy dosimetry.

Supplement maker admits lying about ingredients

Dec 17, 2014

Federal prosecutors say the owner and president of a dietary supplement company has admitted his role in the sale of diluted and adulterated dietary ingredients and supplements sold by his company.

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.