Sanofi upgrades expectations for 2003

pharmafile | October 28, 2003 | News story | Sales and Marketing  

Sanofi-Synthelabo has upgraded its full-year share earnings guidance for 2003, despite its plans to spend more on R&D.

In the first half of this year Sanofi net income rose by 13.7% to Euro 944 million on the back of sales that increased by 6.1% to Euro 3,903 million.

Sanofi figures were again hit by fluctuating exchange rates, which knocked some 17% off its operating profit growth.

Product sales were led by the sleeping pill Stilnox/Ambien (Euro 627 million), Plavix (Euro 612 million) and Eloxatin (Euro 384 million).

The company now expects share earnings to grow by 20%, assuming a dollar/euro exchange rate of 1.10/1 – an upgrade on the previous forecast, also of 20% EPS growth, which was based on dollar/euro parity.

The pharma company also announced some progress with two developmental drugs, treatments for Alzheimer's and depression, which both progressed into phase III clinical trials.

R&D expenses increased by 5.8% in the first half of this year and are expected to grow even more in the second half, primarily due to the cost of the two drugs entering phase III trials.

Analysts from Deutsche Bank said that although the results were in line with their expectations, the progress in its product pipeline, combined with a Euro 1 billion share buy-back programme, was encouraging.

Further positive news for Sanofi was also seen in the legal challenges to the patent on its anti-blood clotting drug Plavix, which it co-markets with Bristol-Myers Squibb.

The company said that a pre-trial order is expected towards mid-2004, later than expected, making a full trial unlikely before the end of 2004

 

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