Sanofi earns soar on lower restructuring costs (Update)

February 6, 2014
Sanofi CEO Christopher A. Viehbacher, left, and President of Sanofi's Global Research and Development, Dr. Elias Zerhouni pose for photographers as they arrive for Sanofi's annual results in Paris, Thursday, Feb. 6, 2014. The French drug maker said Thursday its earnings soared in the fourth quarter as lower restructuring costs offset a hefty charge related to one of its key multiple sclerosis treatments. (AP Photo/Michel Euler)

French drug maker Sanofi said Thursday its earnings soared in the fourth quarter as lower restructuring costs offset a hefty charge related to one of its key multiple sclerosis treatments.

Paris-based Sanofi reported net profit of 1.06 billion euros ($1.4 billion) in the fourth quarter, up from 388 million euros a year earlier. Last year's profit was hammered by over 800 million euros worth of restructuring costs.

Sanofi said it took a 612-million-euro charge in the quarter to account for the U.S. Food and Drug Administration's December ruling that multiple sclerosis treatment Lemtrada is not ready for approval for the American market. Sanofi said it will miss a targeted March date for U.S. approval of the drug.

Earnings by Sanofi's preferred measure of profits—what it calls business earnings per share at constant exchange rates—fell 9.8 percent last year. The company forecast growth by this measure of between four and seven percent this year, "barring major unforeseen adverse events."

Sanofi wants to market Lemtrada as a treatment for relapsing multiple sclerosis, a disease in which the immune system attacks healthy nerves. It can cause pain, numbness, slurred speech, impaired vision, muscle weakness and neurological problems.

The drug was approved by the European Medicines Agency for use in the EU last year, and has also been approved in Canada and Australia. The FDA said Sanofi and its Genzyme subsidiary had not submitted sufficient evidence to show the benefits of Lemtrada.

Sanofi said that Genzyme is preparing its appeal to the agency.

Related Stories

Sanofi earnings slashed in first quarter

May 2, 2013

(AP)—French drug maker Sanofi said Thursday its net profit was slashed in the first quarter from a year earlier as falling sales and patent losses on key drugs combined to hammer earnings.

Sanofi warns on '13 profit as Q2 earns slump (Update)

August 1, 2013

Competition from generic drugs continued to hammer French pharmaceutical group Sanofi in the second quarter, the company said Thursday, warning that its full-year earnings could be twice as bad as previous guidance.

Sanofi looking at 1-2 bn euros of acquisitions per year

November 25, 2013

French pharmaceutical group Sanofi is looking to make annual acquisitions of up to two billion euros to boost its priority sectors, managing director Chris Viehbacher told Monday's Le Figaro newspaper.

US health watchdog rejects Sanofi's MS drug

December 30, 2013

French drug giant Sanofi announced Monday US health authorities had rejected its Lemtrada drug for some forms of multiple sclerosis, which is already approved in the European Union, Canada and Australia.

Sanofi sues Eli Lilly for patent infringement

January 31, 2014

French pharmaceutical giant Sanofi has said it is suing US rival Eli Lilly in an American court for infringing four patents relating to its diabetes treatments.

Recommended for you

0 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.