Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Sanofi misses first-quarter forecasts on vaccine, animal health decline

Published 29/04/2014, 06:34

PARIS (Reuters) - French drugmaker Sanofi PA:SASY reported lower-than-expected first-quarter earnings on Tuesday, weighed down by a delay in supply of paediatric vaccines in emerging markets and generic competition in animal health.

The company however posted double-digit growth in sales of its diabetes, consumer healthcare and rare diseases drugs and confirmed its full-year guidance for earnings growth of 4 to 7 percent at constant exchange rates.

Sanofi's business net income, which excludes items such as amortisation and legal costs, fell 3.2 percent to 1.547 billion euros (1.27 billion pounds) on sales of 7.842 billion, putting business EPS at 1.17 euros per share. Analysts polled by Reuters had expected EPS of 1.20 euros a share on sales of 8.08 billion.

Adverse foreign exchange rates slashed 6.2 percentage points off sales growth. Sales in emerging markets grew 5.5 percent at constant exchange rates and climbed 7.5 percent in the United States but remained muted in Western Europe and Japan.

Sanofi, which was already hit last year by a manufacturing problem at a vaccine plant in Canada, said its performance was affected this quarter by a delay in supply of its 5-in-1 infant paediatric vaccine Pentaxim in Mexico and China.

Sanofi has also seen its popular Frontline tick and flea control product hit by generic competition and despite the recent launch of a follow-on product, NexGard, sales at its animal health unit fell 1.6 percent at constant exchange rates.

Sanofi's Chief Executive Chris Viehbacher tol reporters on a conference call he would continue to look at bolt-on acquisitions in emerging markets, over the counter products and animal health.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

(Reporting by Natalie Huet; Editing by Andrew Callus)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.