Sanofi Q2 Beats Forecast as Genzyme Deal Looms
Sanofi-Aventis Chief Executive Chris Viehbacher delivered forecast-beating second quarter results on
Thursday as he prepared to bid $18.7 billion for U.S biotech group Genzyme.
Viehbacher would not comment on any upcoming deal, and pledged instead to stay disciplined on the takeover front.
Sources told Reuters late on Wednesday that Sanofi plans to make a formal offer of up to $18.7 billion, or $70 per share, for Genzyme as it seeks to replenish its drug pipeline and make up for the loss of patent protection on blockbuster drugs in the years through 2013.
Sanofi's second-quarter earnings exceeded expectations, thanks to tightened spending and with sales driven by demand for its diabetes drugs, growth in emerging markets and a weaker euro.
Buying Genzyme, which is specialised in rare diseases, would be Sanofi's biggest acquisition since 2001 and Viehbacher's biggest move since he became CEO in late 2008.
Sales up dispite generics competition
Quarterly earnings beat Reuters poll forecasts as Sanofi tightened spending and sales were driven by its diabetes division, emerging markets and consumer health. The weaker euro also helped.
Business net income rose 7.6% to €2.48 billion ($3.22 billion) versus the poll's average of €2.32 billion.
Earnings per share climbed 8% to €1.90 versus the forecast €1.78.
Sales increased 4.6% to €7.78 billion even as competition grew from generic copies of bloodthinner Plavix and cancer drug Eloxatin, and as vaccine sales declined.
Sanofi expects 2013 sales to reach at least 2008's level of €27.57 billion , and business net income to be similar to the 2008 level of €7.314 billion.
