Sanofi-Aventis promises more takeovers after upbeat results
FRENCH pharmaceutical firm Sanofi -Aventis pledged discipline in pursuing growth through acquisitions yesterday, as the drugmaker posted better-than-expected results and remained tight-lipped on its expected bid for US biotech company Genzyme.
Sanofi’s second-quarter earnings exceeded forecasts, thanks to tightened spending and demand for its diabetes drugs, growth in emerging markets and a weaker euro.
Business net income rose 7.6 per cent to €2.48bn (£2.08bn). Earnings per share climbed eight per cent to €1.90, ahead of predictions of €1.78.
Sales increased 4.6 per cent to €7.78bn even as competition grew from generic copies of blood thinner Plavix and cancer drug Eloxatin, and as vaccine sales declined.
Sanofi last week cut its 2010 earnings per share forecast to between stable and four per cent lower.
Meanwhile, Sanofi’s board authorised a takeover bid of up to $18.7bn (£12bn) for rival Genzyme.
The firm refused to comment, but said it hopes to match last year’s record 33 acquisitions. An initial approach is expected by the end of the week.