Diabetes Weighs on Sanofi's 3Q Profits

By Sonia Amaral Rohter Features Dow Jones Newswires

Sanofi said that its third-quarter net profit fell 6.4% despite a slight uptick in sales as strong showings in vaccines, specialty care and emerging markets failed to fully offset continued weakness in its diabetes and cardiovascular business.

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The French drugmaker reported third-quarter net profit of 1.57 billion euros ($1.83 billion) compared with EUR1.67 billion in the same period a year earlier.

Business net income--the company's measure for adjusted income excluding the impact of acquisitions and divestments--was EUR2.14 billion for the quarter compared with EUR2.3 billion a year earlier. Sales for the quarter increased 0.3% to EUR9.05 billion. A Vara Research forecast had seen business net income at about EUR2.16 billion and sales of about EUR9.26 billion.

Third-quarter sales of Lantus, Sanofi's flagship diabetes product, were down 15.5% at a constant exchange rate, while overall sales for the diabetes franchise were down 10%.

Sanofi says that it expects sales in its global diabetes franchise to decline at an average annualized rate of between 6% and 8% at a constant exchange rate between 2015 and 2018.

The company confirmed its 2017 outlook and said it continues to expect business earnings per share for 2017 to be "broadly stable" at a constant exchange rate.

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(END) Dow Jones Newswires

November 02, 2017 03:48 ET (07:48 GMT)