By Noémie Bisserbe
PARIS--Sanofi SA Chief executive Christopher Viehbacher said
Tuesday the French drug maker would continue to focus on targeted
acquisitions despite the recent resurgence in megadeals in the
pharmaceutical sector.
Its U.S. rival Pfizer Inc. said Monday it had approached
U.K.-based AstraZeneca regarding a takeover valued at nearly $100
billion, just a week after Novartis AG and GlaxoSmithKline PLC
announced a series of transactions worth more than $20 billion--the
latest in a series of deals that are fundamentally reshaping the
industry.
"We have always been clear. If we can continue to bolt on to our
growth platforms we'll continue to do so," Mr. Viehbacher told
reporters. "And because we believe that we have critical mass in
these areas, we don't feel the need to pay any price to acquire
further businesses," he added.
Like other global pharmaceutical companies, Sanofi has been
struggling with patent expiries on some of its best selling drugs,
and efforts by cash-strapped governments in Europe to reduce health
care spending.
Since taking over as CEO in December 2008, Mr. Viehbacher has
steered the company into new business areas such as biotech, animal
health and emerging markets.
But these moves have been slow to pay off. Inventory glitches
and a crackdown on sales practices in China hurt revenue, forcing
the company to cut earnings forecasts twice last year.
The recent spate of deal-making in the pharmaceutical sector as
drug makers seek to create businesses capable of competing as
leaders in their fields, has led analysts to speculate that
pressure may increase on cash-rich Sanofi to look at acquisitions
to revive growth.
Sanofi on Tuesday reported a 9.6% rise in first-quarter net
profit, helped by lower costs related to earlier acquisitions.
The Paris-based pharmaceutical giant said net profit increased
to EUR1.08 billion ($1.50 billion) in the three months ended March
31 from EUR989 million a year ago.
However, business net income, the company's term for adjusted
income excluding the impact of acquisitions and divestments, fell
3.2% to EUR1.55 billion, below analyst forecasts of EUR1.57
billion.
Revenue declined 2.6% to EUR7.84 billion, dented by foreign
exchange losses and lower animal health and vaccine sales.
Vaccine sales dropped 9.9% to EUR628 million in the first
quarter because of a delay in supply of its infant pediatric
vaccine Pentaxim in Mexico and China, while animal health revenue
declined by 6.7% to EUR517 million due to generic competition.
Pharmaceutical sales were also down 1.6% to EUR6.70 billion.
Genzyme, the drug maker's biotech unit posted a 22% jump in
revenue to EUR566 million, driven by stronger sales of Aubagio, a
medicine used to treat multiple sclerosis.
The company confirmed its guidance for 2014 of a 4% to 7%
increase in business earnings per share at constant exchange
rates.
Write to Noémie Bisserbe at noémie.bisserbe@wsj.com
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