Boston, MA 04/29/2014 (wallstreetpr) – On Tuesday, Sanofi SA (ADR) (NYSE:SNY)‘s Chief Executive Officer, Christopher Viehbacher, reiterated that the French drug maker will continue to concentrate on its targeted smaller acquisitions, even as the pharmaceutical sector is hitting several megadeals.
Focus On Growth Areas
The comment of Mr. Viehbacher comes at a time when a day earlier, its U.S. competitor Pfizer Inc.(NYSE:PFE) said to plan an acquisition of AstraZaneca (AZN) for a $100 billion. The news follows similar deals such a Novartis AG (ADR) (NYSE:NVS) and GlaxoSmithKline plc (ADR) (NYSE:GSK)‘s recent announcement of $20 billion worth of takeover deals. Mr. Viehbacher told reporters that the company is clear about its strategy and firmly believes that if it can take advantage of its own growth platforms then it will do so in the future, as well. Therefore, he said that the company does not feel the need to acquire further businesses.
Revenue Fell In First Quarter
Sanofi, like other drug companies, is challenged with the patent expiration deadlines of some of its best drugs and Europe’s efforts to bring down its health care expenditure. Since taking over the role of CEO in December, 2008, Viehbacher has played a significant role in diversifying company’s business in areas such as animal health, biotech and emerging markets. However, the action has been slow, and inventory hurdles and investigation against sales practices in China have all contributed to revenue fall.
In its first quarter, Sanofi posted a growth of 9.6% in its net profit, driven by low costs associated with its earlier takeovers. The company witnessed an increase of $1.50 billion in its net profit during the quarter. However, adjusted net income fell 3.2% to €1.55 billion and revenue tootook a dip of 2.6% at €7.84 billion, on account of lower animal vaccine sales and foreign exchange losses. Sanofi SA (ADR) (NYSE:SNY) placed its earnings per share guidance for the year 2014 in between 4-7% at constant exchange rates.
