Aventis (NYSE:AVE)
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Aventis Reports Second-Quarter and First-Half Results for 2004
All figures refer to 2004 Group vs. 2003 Core unless otherwise stated
STRASBOURG, France, July 28 /PRNewswire-FirstCall/ --
Aventis Q2 results
* Total revenues, including co-promotion income, rise 5.2% on activity
growth to EUR 4.308 billion ($5.189 billion USD) reported revenues rise
by 2.0%) -- compared to core revenues of EUR 4.223 billion ($5.087
billion USD) in 2003. [Group revenues EUR 4.480 billion ($5.397 billion
USD) in Q2 2003]
* Strategic brands and human vaccines sales rise 14.9% on an activity
basis (reported growth 11.4%)
* EPS up 15.2% to EUR 0.88 ($1.06 USD) before costs related to the tender
offer initiated by Sanofi-Synthelabo; reported earnings per share up
2.4% to EUR 0.78 (.94 USD) from last year's core EPS of EUR 0.76
(.92 USD) [Group EPS EUR 0.77 (.93 USD) in Q2 2003]
Aventis submissions and approvals program advances
* FDA approves antibiotic Ketek, U.S. product launch planned for August 2
* FDA approves Taxotere for use in combination with prednisone for
hormone-refractory prostate cancer
* FDA grants Priority Review for Taxotere in early-stage breast cancer
Taxotere planned to be submitted for gastric cancer late 2004, head and
neck cancer in 2005
* FDA approves rapid-acting insulin analog Apidra, EMEA body issues
positive opinion
CONSOLIDATED GROUP RESULTS
Aventis consolidated group sales were EUR 8.166 billion ($9.837 billion USD) in
the first half of 2004 compared to EUR 8.622 billion ($10.386 billion USD in
the year-ago period. The 2003 sales figure includes the consolidated sales from
the therapeutic proteins business Aventis Behring, which was divested on March
31, 2004, and is being treated as a discontinued operation in the 2004 results
(and therefore excluded from consolidated sales). Group net income was EUR
1.166 billion ($1.405 billion USD) in the first half of 2004 compared to EUR
813 million ($979 million USD) in the year-ago period, while consolidated
earnings per share (EPS), including costs related to the tender offer initiated
by Sanofi-Synthelabo, were EUR 1.50 ($1.81 USD) compared to EUR 1.03 ($1.24
USD). Before the costs related to the tender offer initiated by
Sanofi-Synthelabo, EPS would have been EUR 1.64 ($1.98 USD). In the second
quarter, consolidated group sales were EUR 4.220 billion ($5.083 billion USD)
compared to EUR 4.427 billion ($5.333 billion USD) in the second quarter of
2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000501/NYM197 )
AVENTIS SUBMISSIONS AND APPROVALS PROGRAM ADVANCES
Aventis made strong progress with its submissions and approvals program in the
second quarter. The chemotherapy agent Taxotere (docetaxel) was approved in May
by the U.S. Food and Drug Administration (FDA) for use in combination with
prednisone for androgen-independent (hormone-refractory) metastatic prostate
cancer, making Taxotere the only chemotherapeutic drug approved for breast,
lung and prostate cancer, three of the most prevalent cancers. The FDA also
granted a Priority Review designation for the registrational application to
support Taxotere for the treatment of women with early-stage operable breast
cancer with involved axillary lymph nodes. FDA agency action is expected on or
before September 17, 2004. In addition, Taxotere is being studied extensively
for use in head and neck, and gastric cancers. A submission for gastric cancer
is planned in late 2004 and a submission for head and neck cancer is planned
for 2005.
In early April, the FDA approved Ketek (telithromycin), a first-in-class
antibiotic, to treat acute exacerbation of chronic bronchitis; acute bacterial
sinusitis; and mild to moderate community-acquired pneumonia, including those
infections caused by multi-drug resistant Streptococcus pneumoniae, in patients
age 18 and older. Ketek will be launched in the U.S. on August 2.
Also in April, the FDA approved Nasacort HFA (triamcinolone acetonide) Nasal
Aerosol for the treatment of nasal symptoms associated with seasonal and
perennial allergic rhinitis in adults and children aged six and older. When
marketed, this will be the only nasal aerosol intranasal corticosteroid
available in the U.S. that contains hydrofluoroalkane (HFA) rather than
chlorofluorocarbons (CFCs). The launch is currently planned for December.
Shortly afterwards, the FDA gave its approval for Apidra (insulin glulisine
[rDNA origin] injection), a rapid-acting insulin analog for the treatment of
adults with type 1 and type 2 diabetes. In early June the Committee for
Medicinal Products for Human Use (CHMP), the scientific body of the European
Medicines Evaluation Agency (EMEA), followed with its positive opinion for
Apidra for the treatment of type 1 and type 2 diabetes in adults. The CHMP's
opinions generally serve as the basis for European Commission approvals, which
are typically issued three months after the CHMP publishes its views. In the
same month, the European Commission approved a new indication for Arava
(leflunomide) for the treatment of adult patients with active psoriatic
arthritis.
Aventis is awaiting approval of its quadrivalent meningococcal conjugate
vaccine, Menactra. The FDA's Vaccine and Related Biological Products Advisory
Board (VRBPAC) review meeting for Menactra vaccine is scheduled for September
2004. Based on anticipated licensure of Menactra vaccine, a working group of
the Centers for Disease Control & Prevention's Advisory Committee on
Immunization Practices is considering expanding the current meningococcal
immunization recommendation beyond college freshman living in dormitories to
cover younger adolescents as well. In addition, the Biological License
Application (BLA) for Adacel, a trivalent booster vaccine for adults and
adolescents against pertussis, diphtheria and tetanus, will be submitted to the
FDA in the second half of 2004.
PHARMACEUTICAL BUSINESS FOCUS
Aventis made further progress in the second quarter with the divestment of
non-core activities. In May, an agreement was signed to sell Frankfurt-based
textiles dyes manufacturer DyStar to Platinum Equity, a global investment firm.
Hoechst holds 35 percent of DyStar. At the end of the first quarter, Aventis
divested its therapeutic proteins business (Aventis Behring) to Australia's CSL
Ltd for which Aventis will receive total proceeds of up to $925 million.
Aventis management's objective is to complete the divestment of the remaining
non-core activities, which comprise equity stakes in the chemical companies
Wacker and Rhodia.
As a consequence of its divestment program of non-core activities, Aventis has
simplified its reporting structure since the beginning of 2004. The 2004
consolidated financial statements are reported at the level of Aventis Group,
eliminating the split between core and the remaining non-core business
activities. Aventis Group represents the on-going core business activities in
prescription drugs, human vaccines, the Merial animal health equity joint
venture and corporate activities. It also includes the remaining non-core
businesses. Aventis Behring is treated as a discontinued operation in 2004. As
a result, the performance of Aventis presented as a Group in 2004 is compared
with the 2003 Aventis core business results.
BUSINESS OVERVIEW - 2004 GROUP VS 2003 CORE BUSINESS
Total Group revenues, including co-promotion income, rose 5.2% to EUR 4.308
billion ($5.189 billion USD) in the second quarter from a year earlier. Aventis
consolidated net sales rose by 4.3% on an activity basis to EUR 4.220 billion
($5.083 billion USD) in the second quarter of 2004 compared to EUR 4.170
billion ($5.023 billion USD) for the core business in the year-earlier quarter.
For the first half, group sales rose by 5.3% (activity) to EUR 8.166 billion
($9.837 billion USD) from EUR 8.141 billion ($9.807 billion USD) a year
earlier.
Group net income was affected by costs related to the Sanofi-Synthelabo tender
offer of EUR 76 million ($92 million USD) in the second quarter and of EUR 109
million ($131 million USD) in the first half. Excluding costs related to the
Sanofi-Synthelabo tender offer, consolidated earnings per share (EPS) grew by
15.2% to EUR 0.88 ($1.06 USD) in the second quarter and by 18.9% to EUR 1.64
($1.98 USD) for the first half. On a reported basis, consolidated earnings per
share in the second quarter of this year were EUR 0.78 (.94 USD) compared to
core EPS of EUR 0.76 (.92 USD), an increase of 2.4% from the comparable period.
For the first half, EPS rose 8.7% to EUR 1.50 ($1.81 USD).
H1 H1 Total AVENTIS KEY Q2 2004 Q2 2003 Total
Group Core variance FIGURES (1) (2) (2) variance
2004 2003 (4) (in EUR Group Core (4)
(1) (2) million,
except EPS)
EUR 8,166 EUR 8,141 0.3% Sales EUR 4,220 EUR 4,170 1.2%
5.3% Activity 4.3%
variance(3)
EUR 1,166 EUR 1,088 7.2% Net income EUR 610 EUR 603 1.2%
EUR 1,275 EUR 1,088 17.2% Net income EUR 686 EUR 603 13.8%
before
tender offer
related costs
EUR 1.50 EUR 1.38 8.7% EPS (in EUR) EUR 0.78 EUR 0.76 2.4%
EUR 1.64 EUR 1.38 18.9% EPS (in EUR) EUR 0.88 EUR 0.76 15.2%
before
tender offer
related costs
(1) The consolidated income statement of Aventis for the 6-month period
ended June 30, 2004, has been subject to a limited review by the
auditors.
(2) Not subject to limited review by the auditors.
(3) Excluding currency translation effects
(4) Percentages are calculated before rounding the data
Note: Unless otherwise stated, all references below to sales activity growth
are on a constant exchange rate basis.
Sales activity rose 4.3% to EUR 4.220 billion ($5.083 billion USD) in the
second quarter of 2004. Reported sales rose 1.2% mainly because of the negative
impact of the strength of the euro against other currencies. On a like-for-like
basis (excluding divested products) sales activity rose 5.5%.
Sales of strategic products, which comprise strategic brands (1) and human
vaccines, amounted to EUR 2.445 billion ($2.945 billion USD) in the second
quarter of 2004, an activity increase of 14.9% from a year earlier, and
accounted for 57.9% of total Group sales. Strategic brand sales activity rose
18.5% to EUR 2.144 billion ($2.583 billion USD) in the second quarter.
Sales activity of other prescription drugs, which generally do not receive
marketing and promotional support, fell 8.5% in the second quarter, due mainly
to the negative impact of healthcare cost-containment measures in many European
countries. On a like-for-like basis, excluding divested products, sales
activity for this group of products declined 3.4%.
Bulk and toll manufacturing, which includes the production of active
pharmaceutical ingredients for third parties, reported a sales activity
decrease of 13.6% to EUR 121 million ($146 million USD) in the second quarter.
(1) The Aventis strategic brands are Actonel, Lovenox/Clexane, Ketek,
Lantus, Taxotere, Amaryl, Arava, Campto, Copaxone, Insuman, Nasacort,
Targocid, Tavanic and Delix/Tritace. Since January 1, 2004, Allegra
is no longer classified as a strategic brand and its sales are
reported separately.
Q2 2004 Q2 2003 Activity % share % share
Group Core variance Group Core
Sales Sales (2) sales sales
(1) (1) 2004 2003
(in EUR (in EUR
mln) mln)
EUR 2,445 EUR 2,195 14.9% Strategic brands 57.9% 52.4%
and human vaccines
EUR 435 EUR 501 -7.8% Allegra / Telfast 10.3% 12.0%
EUR 121 EUR 142 -13.6% Bulk and toll 2.9% 3.4%
manufacturing
EUR 1,201 EUR 1,337 -8.5% Other prescription drugs 28.5% 31.9%
(1) Not subject to a limited review by the auditors
(2) At constant exchange rates
In the United States, sales activity rose 6.0% to EUR 1.596 billion in the
second quarter of 2004, with most strategic products continuing to grow.
Lovenox and Lantus recorded strong sales growth. Sales of Taxotere remained
under pressure from a Medicare reimbursement policy currently in place, which
favours generic products.
In Europe, sales activity rose 1.3% in the second quarter, driven by strong
sales of all core strategic brands: Actonel, Lantus, Ketek and Lovenox, and
oncology products Taxotere and Campto. However, government cost-containment
policies continue to impact the pharmaceutical market and the rest-of-portfolio
products. Strategic brands accounted for 58.1% of total sales in Europe
compared to 52.1% in the year-ago period.
In France, strategic product sales grew strongly, driven by Lantus and
Taxotere. Germany also showed strong sales of strategic brands, helped by the
successful launch of the Copaxone pre-filled syringe. However, strong generic
competition affected Delix/Tritace sales in Germany and the UK.
In Japan, second-quarter sales activity advanced 4.0% to EUR 214 million,
mainly due to the success of Ketek, launched in December 2003, and to Amaryl
and Actonel. After a weak pollen season in the first quarter, Allegra is
increasing its market share in Japan's significant dermatology segment.
SELECTED SALES OF AVENTIS STRATEGIC BRANDS AND HUMAN VACCINES (1)
(in EUR million)
H1 H1 Activity Q2 Q2 Activity
2004 2003 variance(2) 2004 2003 variance
EUR 915 EUR 799 22.7% Lovenox/Clexane EUR 475 EUR 411 20.5%
global sales
EUR 548 EUR 490 24.2% U.S. sales EUR 287 EUR 248 22.8%
EUR 716 EUR 667 13.7% Taxotere global sales EUR 382 EUR 343 15.1%
EUR 327 EUR 363 0.1% U.S. sales EUR 175 EUR 185 0.7%
EUR 454 EUR 504 -9.4% Delix/Tritace EUR 230 EUR 263 -12.0%
global sales (Not
sold by Aventis in
the U.S.)
EUR 375 EUR 199 102.1% Lantus global sales EUR 207 EUR 109 96.5%
EUR 229 EUR 153 66.3% U.S. sales EUR 123 EUR 83 58.2%
EUR 77 EUR 39 100.6% Ketek global sales EUR 31 EUR 13 141.0%
(U.S. launch set
for August)
EUR 470 EUR 295 59.2% Actonel total Alliance EUR 251 EUR 158 58.5%
sales(3)
EUR 140 EUR 81 74.6% Actonel sales EUR 78 EUR 48 64.2%
consolidated
by Aventis (4)
EUR 667 EUR 683 4.4% Human vaccines sales EUR 301 EUR 333 -5.4%
consolidated by
Aventis(5)
EUR 380 EUR 385 9.5% U.S. sales EUR 192 EUR 182 11.7%
(1) Not subject to a limited review by the auditors
(2) Excluding currency translation effects
(3) Cooperation with Procter & Gamble
(4) Actonel sales as consolidated by Aventis, including sales in Japan
(5) Vaccines sales in Europe through the Aventis Pasteur MSD joint
venture are not consolidated by Aventis
N.S. Not significant
Lovenox/Clexane (enoxaparin sodium): Sales activity of the anti-thrombotic
agent grew 20.5% in the second quarter and 22.7% in the first half, while U.S.
sales activity rose 22.8% in the second quarter and 24.2% in the first half due
to increasing penetration in key geographic markets at the expense of
unfractionated heparin, the main competitor, in the treatment of medical
patients at risk for deep vein thrombosis (DVT) as well as in patients with
acute coronary syndrome. U.S. growth has been driven by an enlarged sales force
and increased efforts to raise DVT awareness.
As previously announced, Aventis filed an application with the United States
Patent Office (USPTO) in May 2003 for the reissuance of U.S. Patent 5,389,618
('618 patent'), related to Lovenox. A reissuance application is typically used
to seek modification in the specifications of a granted patent. During the
reissuance process, the '618 patent remains in force.
Aventis recently received a second rejection of the reissuance application from
the USPTO. A first rejection was received in the second quarter. Even though
the second rejection was characterized as a "final rejection" by the USPTO,
Aventis has the option of continuing the reissuance process or filing an
appeal. Aventis believes that if its arguments in response to the second
rejection are favorably received, the USPTO could issue a notice of approval of
Aventis' application for reissuance by the end of 2004 and finally reissue the
patent in 2005. Aventis remains committed to continuing the reissue process.
Taxotere (docetaxel): Global sales activity of the chemotherapy agent rose
15.1% in the second quarter of 2004 from a year earlier. In the U.S., Taxotere
sales remained stable in a changing reimbursement environment. Compelling
clinical data in breast cancer presented in late 2003 helped to fuel Taxotere
sales in Europe.
Delix/Tritace (ramipril): The cardiovascular drug recorded a sales activity
decline of 12% in the second quarter, primarily as a result of the introduction
of generic versions of the drug in Germany and the United Kingdom. However,
other European markets and Canada showed strong growth rates, reflecting the
benefits of the ACE inhibitor in treating patients with hypertension and/or
diabetes seeking to reduce the risk of cardiovascular events.
Lantus (insulin glargine): Sales activity of the 24-hour insulin analog
remained strong, rising 96.5% worldwide in the second quarter of 2004 and
advancing 58.2% in the U.S., where the product remains the leading branded
insulin in terms of total prescriptions. Lantus is the largest brand in the
total insulin market (value) in France. In Germany, Lantus currently holds a
50% market share in the basal (long-acting) insulin market. In June at the
American Diabetes Association annual meeting, the first data comparing Lantus
to premixed insulins was presented. The data showed effective glycemic control
and less hypoglycemia with Lantus plus oral anti-diabetes drugs versus premixed
insulins 70/30.
Ketek (telithromycin): Worldwide sales activity of the antibiotic, which
specifically targets mild to moderate respiratory tract infections, rose 141%
due to its launch in several new markets during 2003 and its use in more than
10 million patients in over 40 countries to date. Ketek received U.S. FDA
approval in April, and the U.S. product launch is scheduled for August 2 in
time for the start of the fall 2004 respiratory tract infection season.
Actonel (risedronate): Worldwide sales of the osteoporosis treatment marketed
through the Alliance for Better Bone Health with Procter & Gamble totaled EUR
251 million in the second quarter, a sales increase of 58.5% over the 2003
second quarter. Sales consolidated by Aventis were EUR 78 million, an activity
increase of 64.2%. Aventis reported co-promotion income related to Actonel of
EUR 82 million in the second quarter compared to EUR 50 million in the prior
year, an activity increase of 71%.
Teva Pharmaceuticals USA, Inc. (Teva) has filed an Abbreviated New Drug
Application (ANDA) with the FDA with Paragraph IV certifications against the
five U.S. patents listed for risedronate sodium tablets in the FDA's list of
Approved Drug Products with Therapeutic Equivalence Evaluations (also known as
the "Orange Book"). Teva is seeking approval to market generic versions of
risedronate sodium tablets in the U.S. Aventis is currently reviewing legal
options.
The vaccines business, Aventis Pasteur, generated sales of EUR 301 million.
This decline of 5.4% on an activity basis was mainly due to the positive impact
of biosecurity sales in the second quarter of 2003, as well as the phasing of
sales of certain vaccines in international markets. In Europe, sales by the
joint venture Aventis Pasteur MSD, which are not consolidated by Aventis, rose
to EUR 132 million in the second quarter of 2004, a slight increase compared to
the same period last year.
A record number of pre-booking orders for Fluzone vaccine have been received in
the U.S. this year. This will be the first influenza season since the Centers
for Disease Control (CDC) expanded its recommendations to cover all infants
from six through 23 months of age. Aventis Pasteur's Fluzone vaccine is the
only influenza vaccine approved for this age group.
Sales activity of the seasonal allergy drug Allegra (fexofenadine HCI) declined
7.8% worldwide to EUR 435 million in the second quarter, while U.S. sales
activity fell 10.5% to EUR 360 million. The performance of Allegra in the U.S.
continues to be affected by over-the-counter (OTC) branded and private-label
products as well as changes in reimbursement for prescription antihistamines by
managed care organizations. Patent infringement lawsuits have been filed
against seven companies currently seeking to market generic versions of
fexofenadine. In addition, patent infringement lawsuits have been filed against
suppliers of bulk fexofenadine to generic drug companies. These lawsuits are
pending in the U.S. District Court of New Jersey. The previously communicated
trial date of September 2004 is no longer in effect. No new trial date has been
set.
SECOND-QUARTER PROFITABILITY ANALYSIS -- 2004 Group vs. 2003 Core Business
Total revenues (which includes co-promotion income from Actonel and other
prescription drugs) rose 5.2% on an activity basis growth to EUR 4.308 billion.
Net sales totaled EUR 4.220 billion compared to EUR 4.170 billion (up 4.3% on
an activity basis).
Gross margin as a percentage of total revenues decreased to 73.9% in the second
quarter of 2004 from 74.6% in the second quarter of 2003, due mainly to the
negative currency translation impact. On a constant exchange rate basis, gross
margin was 74.3%, being negatively impacted mainly by the sales decline of
Allegra especially in the U.S., and the volume losses and new reference prices
of Delix/Tritace (ramipril) in the UK and Germany.
Selling, general and administrative expenses and other operating income
(expenses) were EUR 1.273 billion in the second quarter (29.6 % of total
revenues) compared to EUR 1.339 billion (31.7% of total revenues) a year
earlier. Excluding currency translation effects, SG&A and other operating
income (expenses) were flat compared to last year. The increased investments in
new indications for strategic brands and in product launches (Ketek, Lantus,
Sculptra) were offset by the income from product divestment.
Research and development spending totaled EUR 674 million (15.6% of total
revenues) compared to EUR 691 million in the second quarter of 2003 (16.4% of
total revenues). Excluding currency translation effects, R&D expenses were
almost flat compared to the second quarter of 2003, which included milestone
payments to Zealand and ProSkelia. Higher development costs related to VEGF
Trap (developed in cooperation with Regeneron Pharmaceuticals, Inc.) and
Lovenox were partly offset by less spending on Allegra and Ketek, relative to
2003. Additional savings came from organizational effectiveness and
productivity initiatives.
Restructuring expenses amounted to EUR 46 million in the second quarter of 2004
compared to EUR 44 million in the year-ago period. These costs relate to the
productivity initiatives launched in 2003 and 2004 in the prescription drugs
business, which refer to the reorganization of research and development
activities, the continued rationalization of industrial sites, and the
enhancement of operational effectiveness in commercial operations.
Equity in earnings of affiliated companies amounted to EUR 66 million in the
second quarter of 2004 compared with EUR 63 million in the second quarter of
2003.
EBITA (operating income and equity in earnings of affiliated companies before
goodwill amortization) was EUR 1.256 billion in the second quarter of 2004,
versus EUR 1.141 billion in the year-earlier period. EBITA rose by 10% on a
reported basis and by 13.9% at constant exchange rates. As a percentage of
total revenues, the EBITA margin rose 2.1 percentage points to 29.1% from 27.0%
in the year-ago period.
Miscellaneous non-operating income and expenses -- net amounted to a loss of
EUR 186 million, compared to a loss of EUR 15 million in the prior year period.
The Q2 2004 loss includes a market adjustment for investment in Rhodia and in
biotech companies (mainly Genta) as well as the costs related to the tender
offer initiated by Sanofi-Synthelabo.
Income (loss) from discontinued operations (net of income taxes) amounted to an
income of EUR 5 million and relates to the therapeutic proteins business
Aventis Behring, which has been accounted for as a discontinued operation in
2004 following its divestiture to CSL Limited on March 31, 2004.
Net income rose 1.2% to EUR 610 million in the second quarter from EUR 603
million in the year-earlier quarter, while earnings per share (EPS) rose 2.4%
to EUR 0.78 from EUR 0.76 in the second quarter of 2003. Costs incurred in
connection with the tender offer initiated by Sanofi-Synthelabo impacted EPS
negatively by EUR 0.10. Excluding this impact, the EPS growth would have been
15.2% to EUR 0.88 from EUR 0.76. Before goodwill amortization, EPS rose 1.5% to
EUR 0.93 from EUR 0.91 in the year-ago period.
Aventis generated free cash flow of EUR 994 million in the first half of 2004
compared to EUR 157 million in the year-ago period. Free cash flow benefited
from a reduced demand for industrial working capital and significant reduction
of cash-out related to the divested non-core businesses.
Aventis net debt at the end of June 2004 was EUR 2.379 billion, reflecting a
decrease of EUR 1.581 billion compared to the end of 2003. The main cash
transactions that led to the reduction were the strong free cash flow, proceeds
received from the divestment of Aventis Behring, the divestiture of
non-strategic products. The decrease in net debt includes a payment of EUR 327
million to Bayer related to the adjustment of the original purchase price for
Aventis CropScience, which was divested in June 2002.
About Aventis
Aventis is dedicated to treating and preventing disease by discovering and
developing innovative prescription drugs and human vaccines. In 2003, Aventis
generated sales of EUR 16.79 billion, invested EUR 2.86 billion in research and
development and employed approximately 69,000 people in its core business.
Aventis corporate headquarters are in Strasbourg, France. For more information,
please visit: http://www.aventis.com/. The press releases, IR presentation and
links to live and on-demand audiocasts are available at
http://www.aventis.com/2004Q2.
Conference calls
Patrick Langlois, Vice Chairman of the Management Board and Chief Financial
Officer, will be available for an analysts conference call at 2:00 p.m. CET.
The press releases and a live and replay audio webcast of the analyst
conference call will be available on the Internet at:
http://www.aventis.com/2004Q2.
Definition of Basic Earnings Per Share (EPS) before goodwill amortization:
Basic EPS before goodwill amortization is an unaudited non-GAAP financial
measure that we define as our consolidated net income excluding goodwill
amortization divided by the unaudited number of our shares outstanding (at
period end). We have included basic EPS before goodwill amortization in
addition to the corresponding GAAP measure EPS which includes non-cash charges
for goodwill amortization, because we consider this non-GAAP measurement to
more closely reflect the underlying business performance of our operations.
Definition of EBITA: EBITA is an unaudited non-GAAP financial measure that we
define as operating income and equity in earnings of affiliated companies
before goodwill amortization. We have included EBITA in addition to the
corresponding GAAP measure operating income, which includes non-cash charges
for goodwill amortization because we consider this non-GAAP measurement to more
closely reflect the underlying business performance of our operations.
Additionally, we use this measure to assess our financial performance
Definition of Free Cash Flow: Free Cash Flow is an unaudited non-GAAP measure
that we define as cash from operational activities net of capital expenditures.
Statements in this news release containing projections or estimates of
revenues, income, earnings per share, capital expenditures, capital structure,
or other financial items; plans and objectives relating to future operations,
products, or services; future economic performance; or assumptions underlying
or relating to any such statements, are forward-looking statements subject to
risks and uncertainties. Actual results could differ materially depending on
factors such as the timing and effects of regulatory actions, the results of
clinical trials, the company's relative success developing and gaining market
acceptance for new products, the outcome of significant litigation, and the
effectiveness of patent protection. Additional information regarding risks and
uncertainties is set forth in the current Annual Report on Form 20-F of Aventis
on file with the Securities and Exchange Commission and in the current Annual
Report -"Document de Reference"- on file with the "Autorite des marches
financiers" in France.
Aventis shareholders are advised to read Aventis' Note d'information en reponse
registered under visa no. 04-510 with the Autorite des marches financiers (the
"AMF"). This document contains important information. Aventis shareholders are
also advised to read Aventis' Solicitation/Recommendation Statement on Schedule
14D-9 filed by Aventis with the U.S. Securities and Exchange Commission (the
"SEC"), as contains important information. The Note d'information en reponse
and the Solicitation/ Recommendation Statement and other public filings made
from time to time by Aventis with the AMF or the SEC are available without
charge from the AMF's website at http://www.amf-france.org/ and from the SEC's
website at http://www.sec.gov/.
Brand names appearing in italics throughout this document are trademarks of
Aventis, and/or its affiliates, with the exception of trademarks that may be
used under license by Aventis and/or its affiliates, such as Actonel, a
trademark of Procter & Gamble Pharmaceuticals; Alvesco, a trademark of ALTANA
Pharma AG; Genasense, a trademark of Genta Inc.
Pursuant to Article 7 of the COB Regulation no. 2002-04, this press release was
transmitted to the Autorite des marches financiers before its release.
Note to Editors: This press release was issued earlier today in France by
Aventis S.A. (NYSE:AVE). This version contains key figures converted from
euros into U.S. dollars (USD) at the exchange rate of 1 euro = 1.2046 USD.
Complete financial tables are available on our website at:
http://www.aventis.com/ or by calling 908/243-2305.
http://www.newscom.com/cgi-bin/prnh/20000501/NYM197DATASOURCE: Aventis
CONTACT: Patti Munzer, Aventis Global Media Relations, +1-908-243-2298,
, or Tony Roddam, Aventis Media Relations,
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