Sanofi-Aventis shelves 14 R&D programmes; sales up
This article was originally published in Scrip
Sanofi-Aventis has discontinued, halted or returned the rights to 14 R&D projects currently in its pipeline as its CEO Chris Viehbacher continues to overhaul the business.
The company's net sales increased by 3% to €7.11 billion as it benefited from a 2.7 point positive currency exchange effect. Its gross profit increased by 7% to €5.68 billion.
Pharmaceutical sales fell by 1% to €6.48 billion, while its human vaccines business grew by 9% to €627 million.
Sanofi-Aventis's US sales fell after it stopped commercialising the central nervous system treatment Copaxone (glatiramer acetate), which fell to €113 million (-64%). Total US sales fell by 5% to €2.3 billion.
Net sales in Europe declined by 1% to €2.95 billion, but Eastern Europe continued to drive growth, with sales up by 16%. Sales grew by 8% in other countries, benefiting from a 14% increase in Japan and a 13% rise in Asia-Pacific.
The company's lead product Lovenox (enoxaparin sodium) posted sales of €762 million (+1%). This was largely due to abnormally high sales in the US during the first quarter of 2008, when wholesalers placed large orders for the product in response to some unfractionated heparins being withdrawn from the market.
Sanofi-Aventis has discontinued three programmes in Phase III development: saredutant has been discontinued on the basis of results from the a study of its use in association with escitalopram in depression, AVE5530 has been halted in hypercholesterolaemia due to insufficient efficacy, and the Unifive pentavalent vaccine project (DTP-HepB-Hib) has been stopped. The company has also returned the rights to the cancer vaccine candidate Trovax to Oxford BioMedica.
In Phase II, it has halted the development of AVE0657 in sleep apnea, SSR180575 in diabetic polyneuropathy, AVE1642 in oncology, and a melanoma vaccine. Sanofi-Aventis has also halted six Phase I projects.
The company will decide in the next few months whether or not to continue developing AVE1625, xaliprodene, idrabiotaparinux and a West Nile virus vaccine, following results from clinical trials currently being conducted.
R&D costs increased by 6% to €1.15 billion, which included €54 million associated with the discontinuation of some of its pipeline projects. Selling and general expenses decreased by 3% to €1.73 million.
Sanofi-Aventis expects 2009 EPS grow by at least 7% at constant exchange rates. Its adjusted EPS in the first quarter grew by 17% to €1.67 (+10% at constant exchange rates).
Collins Stewart analysts believe the market has failed to take into account Sanofi-Aventis's corporate changes, saying it is still the most undervalued stock in its European large-cap pharma coverage.
The company's share price increased by 3% on April 29th to open at €43.08 on the Euronext stock exchange.
Sanofi-Aventis's First-quarter 2009 Top Product Sales (€mill)
Product | 1st quarter | % change |
Lovenox | 762 | +6 |
Lantus | 747 | +34 |
Plavix | 685 | +4 |
Taxotere | 534 | +10 |
Eloxatin | 344 | +1 |
Aprovel | 314 | +9 |
Allegra | 251 | +24 |
Stilnox | 220 | +6 |
Copaxone | 113 | -64 |
Tritace | 110 | -17 |
Amaryl | 100 | +11 |
Depakine | 80 | - |
Xatral | 75 | -7 |
Actonel | 68 | -9 |
Nasacort | 59 | -16 |