Sanofi-Aventis posts strong growth despite eloxatin hit
This article was originally published in Scrip
Sanofi-Aventis has raised its full-year EPS guidance again after its net income rose by 16% to €2.2 billion in the third quarter.
The company now expects its adjusted EPS to grow by around 11% at constant exchange rates, up from the 10% growth that it forecast at the end of July. Its EPS in the quarter increased by 16% to €1.71 and by 21% to €5.11 in the first nine months of this year.
Sanofi-Aventis's total revenues increased by 8% to €7.8 billion on a reported basis in the quarter as its top four products all reported sales increases.
The insulin treatment Lantus (insulin glargine [rDNA origin] injection) posted the highest growth, withsales increasing by 27% to €778 million. However, the product's growth slowed slightly from the second quarter, in which it posted a 38% increase.
Sales of Lovenox (enoxaparin) increased by 18% to €747 million, driven by strong growth in Europe (+23%) and in the other countries region (+19%).
However, generic competition severely dented the performance of Sanofi-Aventis's colon cancer treatment Eloxatin (oxaliplatin injection). The product's total sales slumped by 41% to €193 million. US sales of the product were down by 53%, after a number of generic products were launched in August, while European sales fell by 55%.
The recently launched Multaq (dronedarone), Sanofi-Aventis's amiodarone follow-up anti-arrhythmic, made a positive start and posted sales of €13 million in the nine weeks that it has been marketed in the US. The product has been available in Canada and Switzerland since the end of last month when it also received a positive opinion from the CHMP in the European Union. The opinion now needs to be ratified by the European Commission.
Sanofi-Aventis's largest growth in geographical area was seen in the Middle East, where sales jumped by 15% to €150 million at CER. This helped to push the company's sales outside of Europe and the US up by 10% to €1.9 billion. European sales increased by 7% to €3.1 billion, but US sales were up by 1% at €2.4 billion as generic competition to Eloxatin offset strong growth in Lantus and Lovenox sales.
Product | 3rd quarter | % change | YTD | % change |
Lantus | 778 | +27 | 2,317 | +33 |
Lovenox | 747 | +18 | 2,289 | +15 |
Plavix | 664 | +6 | 2,053 | +5 |
Taxotere | 526 | +4 | 1,644 | +10 |
Aprovel | 299 | - | 919 | +2 |
Stilnox | 213 | +7 | 660 | +11 |
Eloxatin | 193 | -41 | 890 | -10 |
Allegra | 153 | +17 | 591 | +19 |
Copaxone | 118 | +18 | 349 | –33 |
Tritace | 107 | -9 | 328 | -14 |
Sanofi-Aventis's OTC business grew by 26% to post sales of €356 million due to the consolidation of the company's acquisitions of Symbion and Zentiva. Its generics business was also boosted by recent acquisitions. The consolidation of Zentiva, Kendrick and Medley helped to almost quadruple the business's sales to €302 million.
Sanofi-Aventis's total R&D costs grew by 2% to €1.1 billion, while its selling and general expenses increased by 3% to €1.7 billion. For the year to date, the firm's total sales were up by 7% to €21.9 billion, while its net income leapt by 20% to €6.7 billion.