Profit at drugmaker Sanofi up 35 pct for 1st half

July 26, 2012

(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.

Explore further: Global spending on drugs to slow through 2016

shares

Related Stories

Global spending on drugs to slow through 2016

July 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 ...

Recommended for you

Exploring the potential of human echolocation

June 25, 2017
People who are visually impaired will often use a cane to feel out their surroundings. With training and practice, people can learn to use the pitch, loudness and timbre of echoes from the cane or other sounds to navigate ...

Team eradicates hepatitis C in 10 patients following lifesaving transplants from infected donors

April 30, 2017
Ten patients at Penn Medicine have been cured of the Hepatitis C virus (HCV) following lifesaving kidney transplants from deceased donors who were infected with the disease. The findings point to new strategies for increasing ...

'bench to bedside to bench': Scientists call for closer basic-clinical collaborations

March 24, 2017
In the era of genome sequencing, it's time to update the old "bench-to-bedside" shorthand for how basic research discoveries inform clinical practice, researchers from The Jackson Laboratory (JAX), National Human Genome Research ...

The ethics of tracking athletes' biometric data

January 18, 2017
(Medical Xpress)—Whether it is a FitBit or a heart rate monitor, biometric technologies have become household devices. Professional sports leagues use some of the most technologically advanced biodata tracking systems to ...

Financial ties between researchers and drug industry linked to positive trial results

January 18, 2017
Financial ties between researchers and companies that make the drugs they are studying are independently associated with positive trial results, suggesting bias in the evidence base, concludes a study published by The BMJ ...

Best of Last Year – The top Medical Xpress articles of 2016

December 23, 2016
(Medical Xpress)—It was a big year for research involving overall health issues, starting with a team led by researchers at the UNC School of Medicine and the National Institutes of Health who unearthed more evidence that ...

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.