French drugmaker Sanofi (SNYNF, SNY) Thursday reported a sharp decline in profit for the first quarter, as sales fell hit by generic competition. The company backed its full year earnings view.
Net income attributable to equity holders of Sanofi dropped to 1.004 billion euros from 1.809 billion euros in the previous year. Earnings per share fell to 0.76 euros from 1.37 euros. The prior year results are with retroactive application of IAS19R.
Business net income fell 33.5 percent to 1.613 billion euros and business earnings per share were 33.3 percent lower at 1.22 euros.
Net sales declined to 8.059 billion euros from 8.511 billion euros in the previous year, impacted by sales of 553 million euros lost due to generic competition.
Christopher Viehbacher, Sanofi's CEO, said, ''As expected, the loss of exclusivity of Plavix, Avapro and Eloxatin in the course of 2012 in the U.S. had a negative impact on Q1 results. However, our growth platforms continue to deliver strong results with diabetes, vaccines, and Genzyme all achieving
double-digit growth...The Group expects to resume growth in the second half of 2013."
Sanofi said the performance of the first quarter is in line with the full year guidance announced on February 7. The residual impact from the loss of Plavix and Avapro exclusivity in the U.S. is expected to impact business net income in the first half of 2013 by around 800 million euros at constant exchange rates.
Including this impact, the continued strong performance of growth platforms, investments in the late-stage pipeline, launch expenses for new products and ongoing cost savings are expected to lead to a 2013 business earnings per share flat to 5 percent lower than 2012 at constant exchange rates.
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