Sanofi-Aventis raises 2005 earnings goal

Paris: Sanofi-Aventis SA raised its 2005 earnings goal yesterday, even as quarterly sales came in just below forecasts on generic competition, and it reaffirmed plans for its experimental Acomplia obesity pill.

The French drugmaker said it still expects to launch Acomplia in the second quarter in the United States. The anti-obesity pill is seen as key to its future growth, which is challenged by generic rivalry and efforts in court to copy some of its main drugs.

Adjusted earnings per share should increase by "close to" 25 per cent in 2005, instead of at least 20 per cent, the world's third largest drugmaker said, raising its goal for the second time as its sales growth continued to outpace the sector.

Sales grew 7 per cent in the fourth quarter, just missing expectations, bolstered by demand for vaccines and its bloodthinners.

Sales rose to 7.007 billion euros ($8.54 billion) in the quarter, compared with an average outcome of 7.093 billion in a Reuters poll of 14 analysts, bringing 2005 sales to 27.311 billion euros, up 8.4 per cent from 2004.

Growth was limited by lower revenues from four drugs grappling with the arrival of generic rivals, including Allegra, Sanofi's hayfever treatment which saw sales tumble and is losing its blockbuster status.

Sales grow

Underlying sales, excluding the impact of currency swings, grew 4.8 per cent in the quarter.

Sanofi shares fell 1.7 per cent to 74.35 euros by 1013 GMT, while the DJ health index was down 0.4 per cent.

Analysts said sales roughly met expectations and that the market had taken into account growth in earnings of nearly 25 per cent after sturdy performance in the year's first nine months. The focus would rather be on Acomplia, for which Sanofi has tabled annual sales of about $3 billion.

"It's a pretty dull quarter. The pharmaceuticals were a little bit light but Acomplia is far more important than these sales," a London-based analyst said.