Sanofi-Aventis Posts 31% Rise in Net
On Cost Cutting, U.S. Plavix Sales
By JETHRO MULLEN
February 12, 2008 5:23 a.m.
PARIS -- Sanofi-Aventis said Tuesday its fourth-quarter net profit rose 31%, helped by cost-cutting measures and higher U.S. sales of blood-thinner Plavix.
The world's third-largest pharmaceutical company by prescription sales posted net profit of €753 million for the three months ended Dec. 31, compared with €575 million a year earlier. Prior-year results included a €214 million asset impairment charge.
The closely-watched profit before merger and restructuring costs rose 6.2% to €1.46 billion from €1.38 billion.
Sales of the company's top 15 products declined by 0.3% on a comparable basis to €4.17 billion, adversely impacted by generic versions of Sanofi's sleeping pill Ambien IR in the U.S. and its cancer treatment Eloxatin in Europe. Excluding sales of Ambien IR and Eloxatin, sales of the top 15 products would have achieved growth of 9.5% on a comparable basis, Sanofi said. Comparable sales growth excludes the impact of exchange-rate movements and changes in the company's structure.
The group's key drugs charted strong performances, with comparable sales of Plavix rising 14%, antithrombotic drug Lovenox increasing 17% and diabetes treatment Lantus rising 31%.
Sanofi also said it will buy back €1.2 billion of its own shares before its annual shareholders meeting in May. The company bought €1.8 billion in shares in 2007, said Jean-Claude Leroy, executive vice president for finance and legal. The company's board will deliberate over the next share-buyback program after the shareholders meeting.
Sanofi said it will submit a €2.07 dividend for approval at its next annual general meeting, up 18% from last year.
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