Sanofi-Aventis Q3 Net Sales Up

Sanofi-aventis has reported financial results for the third-quarter of 2009. The company generated net sales of E7,400m, up 8% on a reported basis. Exchange rate movements had a favorable effect of 2% points, with the appreciation of the US dollar (and to a lesser extent the yen) against the euro more than offsetting the unfavorable effects of some other currencies.

Gross profit came to E5,744m, a rise of 6.9%. The ratio of cost of sales to net sales increased to 27.4% due to a slightly less favorable product mix, a rise in the cost of heparin raw materials, and the impact of generics during the period (arrival of Eloxatin generics in the US, and increased generic competition for Plavix in Europe).

Research and development expenses were up 1.8% at E1,109m, but down 0.6% at constant exchange rates, reflecting a selective approach to R&D projects and the impact of cost savings in pharmaceuticals R&D, increased R&D spend in vaccines, and the development costs of acquired companies. Overall, the ratio of R&D expenses to net sales was 15%, 0.9% point lower than in the comparable period of 2008.

Selling and general expenses increased by 3.4% to E1,707m, and include the launch costs for Multaq in the US. The ratio of selling and general expenses to net sales fell to 23.1%, reflecting the ongoing adaptation program.

Other current operating income, net of expenses totaled E86m, versus E49m in the third quarter of 2008. The year-on-year change mainly reflects an increase in the royalty collected by sanofi-aventis on sales of Copaxone in North America.

Christopher Viehbacher, CEO at Sanofi-Aventis, said: “We pursued our transformation strategy in the third quarter, reinforcing our platforms for growth and forging ahead with our policy of R&D alliances and targeted acquisitions. As promised, we have mobilised substantial resources on the production of A/H1N1 vaccines.”