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's net profit was €1 billion ($1.3 billion) in the January-March quarter, down 45 percent from €1.8 billion a year earlier.

Revenue from Plavix, which had been the world's second best-selling drug until its U.S. patent expired last May, slid 5 percent. That, along with that cut sales of Avapro and Aprovel by 20.8 percent, dragged down total company sales by 5.3 percent.

Sanofi warned that core earnings per share could fall up to 5 percent this year, after a 12.8 percent drop in 2012. It warned also that growth would not return until the second half of 2013.

"As expected the loss of exclusivitiy of Plavix, Avapro and in the course of 2012 in the U.S. had a negative impact on Q1 results," CEO Christopher Viehbacher said in a statement.

The €1.22 per share was well below the €1.33 average forecast of analysts polled by FactSet.

Sanofi's weak earnings came as other pharmaceutical giants also delivered gloomy first quarter reports. . fell short of and lowered its profit and sales forecasts for the year this week, while last week Bristol-Myers Squibb Co. posted a 45 percent drop in first-quarter profit on plunging sales from increased generic competition.

Sanofi played up strong performances in its diabetes, vaccines and Genzyme, but that was more than offset by a €553 million in lost sales from heightened generic competition for drugs Eloxatin, Lovenox, Plavix and Aprovel.

Sales in Western Europe and the United States, markets that account for over half of Sanofi's total sales, fell by about 10 percent in the first quarter.

Explore further: Bristol-Myers, Sanofi revamp Plavix sales alliance (Update)

Related Stories

Bristol-Myers, Sanofi revamp Plavix sales alliance (Update)

October 3, 2012
(AP)—Bristol-Myers Squibb Co. and France's Sanofi SA said Wednesday that they are restructuring their longtime partnership selling popular heart medications, now that their sales are plunging due to widespread competition ...

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.

Generic competition cuts Merck's Q1 sales, profit

May 1, 2013
Drugmaker Merck & Co. is reporting lower first-quarter results and cutting its 2013 profit forecast by 15 cents a share. It also is announcing a huge share buyback, up to $15 billion worth of its stock.

Eli Lilly 2013 profit forecast tops expectations

January 4, 2013
(AP)—Eli Lilly and Co. said Friday its 2013 earnings will grow more than Wall Street expects, even though the drugmaker will lose U.S. patent protection for two more key products this year.

AstaZeneca in patent warning as net profit falls

January 31, 2013
(AP)—Anglo-Swedish pharmaceutical company AstraZeneca PLC warned over expiring patents on its medicines as the company announced a 37 percent fall in full-year net profit on Thursday.

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.