Sanofi Lifted by Biotech and Lower Costs

By Noemie Bisserbe 

PARIS-- Sanofi SA on Thursday reported a 68% jump in second-quarter net profit, lifted by its biotech business and lower costs, providing new Chief Executive Olivier Brandicourt with momentum in his first few months on the job.

The Paris-based pharmaceutical company said net profit rose to EUR1.3 billion ($1.43 billion) for the three months through June from EUR777 million a year earlier.

Business net income, the company's term for adjusted income excluding the impact of acquisitions and divestments, increased 20% to EUR1.84 billion, beating analysts' expectations of EUR1.70 billion. Sanofi's total sales rose 16% to EUR9.38 billion.

Genzyme, the company's biotech unit, posted a 27% rise in revenue to EUR907 million, boosted by strong sales of Aubagio, a multiple sclerosis drug. Vaccine and animal drugs sales also rose 9% and 14%, respectively in the second quarter.

However, diabetes drug sales, which account for more than 20% of the company's revenue, fell 4% to EUR1.99 billion, hurt by lower sales of its insulin Lantus, which lost patent protection in the U.S. in May.

Sanofi said it still expected business earnings-per-share to remain stable or grow slightly in 2015, compared with 2014, at constant exchange rates.

Write to Noemie Bisserbe at [e-mail]

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