Sanofi admits that sales could drop as patents end
FRENCH drugmaker Sanofi said yesterday that its earnings could drop by up to 15 per cent this year as top-selling drugs previously protected by patents are hit by competition from generics.
Sanofi expects to return to growth in subsequent years, driven by emerging markets, diabetes, vaccines, its takeover of biotechnology company Genzyme and new products.
“The chapter on blockbusters closes, but we are in good shape coming out of the ‘patent cliff’ this year,” chief executive Chris Viehbacher said.
The Paris-based company reported a 13 per cent increase in fourth-quarter profits and fine-tuned the expected earnings dip in 2012 as blood-thinner Plavix, the world’s second-best selling medicine, and blood pressure drug Avapro shortly face competition from generic copies in the US.
Fourth-quarter business net income rose to €2.08bn (£1.74bn), in line with analysts’ average forecast of €2.07bn. Sales rose 8.8 per cent to €8.51bn.