02 Aug 2013, BioSpectrum Bureau , BioSpectrum
Singapore: Sanofi slashed its 2013 earnings forecast as it reported a steeper-than-expected drop in second-quarter profit, hit by the effect of patent losses, currency fluctuations and an inventory setback in Brazil.
Sanofi also predicted earnings this year would be between seven-to-10 percent lower than in 2012 at constant exchange rates, but said it continued to expect to return to growth in the second half of 2013. Sanofi had previously forecast that annual profit would be flat to five percent lower at constant currencies.
The group's closely watched business net income, which excludes items such as amortization and legal costs, declined 23.4 percent to $1.96 billion (1.48 billion euros). Sales shrunk 9.8 percent to eight billion as last year's patent expiry on anti-clotting drug Plavix, once the world's second-best selling prescription drug, sliced 481 million euros off revenue in the quarter.
The group's generics business in Brazil was hit by much higher-than-planned inventory levels during the second quarter, Sanofi said. As a result, Sanofi had to adjust sales by 122 million euros and book an additional provision of 79 million to write off the inventory and other related costs.