Sanofi CEO Plays Down Potential for Swine Flu Vaccine Profits
Drug Maker Lifts Full-Year Forecast as Second-Quarter Profit Rises 4.9
Sanofi-Aventis SA's chief executive played down the potential for profits from the sale of the H1N1 swine flu vaccine, saying the company is viewing the pandemic as a "public health issue and not as a business opportunity."
In an interview, Christopher Viehbacher said the company probably won't book any H1N1 vaccine sales till the fourth quarter. He declined to forecast how much profit Sanofi would earn from H1N1 vaccine sales, saying it is still unclear how many doses the French drug maker will be able to make.
"There'll certainly be some extra sales and profits associated with it," he said. "But ... it's kind of a one-off effect, and I don't really see it as affecting the long-term valuation of the company."
Sanofi has signed contracts to supply doses to the U.S., France and Mexico, but isn't rushing to sign additional orders, Mr. Viehbacher said. The company wants to retain some flexibility so it can ship doses to countries that need vaccine the most, he said.
Mr. Vienbacher's comments came as the drug maker raised its full-year guidance after reporting a 4.9% rise in second-quarter net profit, and said it expects to generate €2 billion ($2.83 billion) in recurring cost savings by 2013.
Sanofi said it now expects growth of at least 10% in adjusted earnings per share, excluding selected items. The company previously targeted 7% growth.
Net profit for the three months ended June 30 stood at €1.06 billion, compared with €1.01 billion a year earlier, as sales from its blockbuster drugs and vaccines remained firm. Revenue rose 11% to €7.44 billion.
Drug Maker Lifts Full-Year Forecast as Second-Quarter Profit Rises 4.9
Sanofi-Aventis SA's chief executive played down the potential for profits from the sale of the H1N1 swine flu vaccine, saying the company is viewing the pandemic as a "public health issue and not as a business opportunity."
In an interview, Christopher Viehbacher said the company probably won't book any H1N1 vaccine sales till the fourth quarter. He declined to forecast how much profit Sanofi would earn from H1N1 vaccine sales, saying it is still unclear how many doses the French drug maker will be able to make.
"There'll certainly be some extra sales and profits associated with it," he said. "But ... it's kind of a one-off effect, and I don't really see it as affecting the long-term valuation of the company."
Sanofi has signed contracts to supply doses to the U.S., France and Mexico, but isn't rushing to sign additional orders, Mr. Viehbacher said. The company wants to retain some flexibility so it can ship doses to countries that need vaccine the most, he said.
Mr. Vienbacher's comments came as the drug maker raised its full-year guidance after reporting a 4.9% rise in second-quarter net profit, and said it expects to generate €2 billion ($2.83 billion) in recurring cost savings by 2013.
Sanofi said it now expects growth of at least 10% in adjusted earnings per share, excluding selected items. The company previously targeted 7% growth.
Net profit for the three months ended June 30 stood at €1.06 billion, compared with €1.01 billion a year earlier, as sales from its blockbuster drugs and vaccines remained firm. Revenue rose 11% to €7.44 billion.
No hay comentarios:
Publicar un comentario