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Sanofi sales and profit slide on US pricing

PARIS, July 29, 2016

French drugmaker Sanofi's sales and profit fell in the second quarter despite double-digit growth at biotech arm Genzyme, as the diabetes division continued to come under sustained US pricing pressure.

Business net income fell 3.3 per cent to €1.68 billion ($1.86 billion) at constant exchange rates, with revenue down 0.2 per cent at 8.87 billion, the French drugmaker said on Friday. Sales fell 4.3 per cent on a reported basis.

Sanofi is under pressure to diversify geographically and expand in areas such as oncology as it faces declining sales of its diabetes blockbuster Lantus.

The company maintained its guidance for stable 2016 profit but predicted a negative 4 per cent currency impact on its full-year earnings per share.

Exchange rate swings had a negative effect of 4.1 per cent on quarterly sales, Sanofi said, compounded by persistent difficulties in Venezuela.

But Biotech arm Genzyme reported a 20.1 per cent sales increase at constant rates, while the vaccines and animal health divisions also posted stronger revenue.

Sales at the diabetes division, however, were down 3.5 per cent, reflecting lower sales of Lantus in the US.

The results were broadly in line with analysts' expectations of €8.89 billion ($9.85 billion) in sales and €1.68 billion ($1.86 billion) in business net income, based on the mean of 10 estimates in a Reuters poll. – Reuters

Tags: | US | Sales | profit | Sanofi |

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