Full-year guidance raised on good 2007 first-quarter results
-------------------------------------------------------------------------
Net sales (on a comparable basis)(1): up 6.9%
Adjusted EPS(1): down 3.1%
Adjusted EPS1 excluding selected items(2): up 11.0%
-------------------------------------------------------------------------
PARIS, May 3 /CNW Telbec/ - The consolidated income statement for the
first quarter of 2007 is provided in the appendices. Consolidated net income
after minority interests for the period was (euro)1,537 million, compared with
(euro)1,512 million in the first quarter of 2006, after the impact of the
accounting treatment of acquisitions (primarily the acquisition of Aventis)
and associated after-tax restructuring costs totaling (euro)580 million in the
first quarter of 2007 and (euro)661 million in the first quarter of 2006.
In order to give a better representation of our underlying economic
performance, we have decided to present and explain an adjusted consolidated
income statement(1) for the first quarter of 2007, and to compare it with an
adjusted consolidated income statement for the first quarter of 2006. Adjusted
net income for the first quarter of 2007 was (euro)2,117 million, compared
with (euro)2,173 million for the first quarter of 2006.
-------------------------------------------------------------------------
Unless otherwise indicated, all sales growth figures in this press
release are stated on a comparable basis(1).
-------------------------------------------------------------------------
FIRST QUARTER OF 2007:
- Net sales: (euro)7,177 million, up 6.9% (up 2.0% on a reported basis).
Pharmaceuticals net sales growth was 6.2%, in line with the 2006
fourth-quarter growth rate.
- "Operating income - current"(1) up 12.4%. Improvement of 3.5 points in
the ratio of "Operating income - current"(1) to net sales
- Adjusted EPS of (euro)1.57
- 11.0% growth in adjusted EPS excluding selected items(2) to (euro)1.41,
versus (euro)1.27 for Q1 2006
2007 GUIDANCE RAISED: Based on the good results achieved in the first
quarter of 2007, the company has raised its 2007 full-year adjusted EPS growth
guidance from 6% to 9% (excluding selected items2/3).
Barring major adverse events (such as major adverse events on Lovenox(R)
and Plavix(R) in the United States), the Group expects a growth in 2007
adjusted EPS excluding selected items in the range of 9%, calculated using a
rate of (euro)1 = $1.25, despite the end of protection for Ambien(R) IR in the
United States in April and the arrival of generic competition for Eloxatin(R)
in Europe. Sensitivity to the euro/dollar exchange rate is estimated at 0.6%
of growth for a 1-cent movement in the exchange rate(4).
2007 first-quarter net sales
In the first quarter of 2007, sanofi-aventis generated net sales of
(euro)7,177 million, an increase of 6.9%. Exchange rate movements had an
unfavorable impact of 4.6 points, two-thirds of which related to the U.S.
dollar. Changes in Group structure had an unfavorable effect of 0.3 of a
point. On a reported basis, net sales rose by 2.0%.
Net sales by business segment - Pharmaceuticals
First-quarter net sales for the pharmaceuticals business were
(euro)6,610 million, an increase of 6.2%, in line with the growth rate for the
fourth quarter of 2006. Net sales of the top 15 products were up 10.5% at
(euro)4,483 million, representing 67.8% of pharmaceuticals net sales compared
with 65.2% in the first quarter of 2006.
--------------------------------------------------------------------------
Change on a
Q1 2007 comparable
(euro) million net sales basis
--------------------------------------------------------------------------
Lovenox(R) 634 +8.2%
Plavix(R) 569 -1.0%
Stilnox(R)/Ambien(R)/Ambien CR(TM) 606 +49.3%
Taxotere(R) 449 +10.0%
Eloxatin(R) 393 -3.2%
Lantus(R) 458 +27.2%
Copaxone(R) 289 +17.5%
Aprovel(R) 264 +7.8%
Tritace(R) 211 -6.2%
Allegra(R) 201 +21.8%
Amaryl(R) 94 -19.0%
Xatral(R) 82 -9.9%
Actonel(R) 78 -10.3%
Depakine(R) 76 0.0%
Nasacort(R) 79 +21.5%
--------------------------------------------------------------------------
TOTAL TOP 15 4,483 +10.5%
TOTAL TOP 15 excluding Eloxatin(R) in Europe 4,374 +11.8%
--------------------------------------------------------------------------
First-quarter net sales of other pharmaceutical products fell by 1.8% to
(euro)2,127 million, against (euro)2,165 million(5) in 2006. Net sales of the
antibiotic Ketek(R) halved year-on-year (to (euro)30 million, from
(euro)59 million(5) in the first quarter of 2006) due to restrictions on the
indications for the product.
Geographical split of consolidated net sales by product (Top 15)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Change on Change on Change on
Q1 2007 net sales a compa- a compa- a compa-
(euro) million rable United rable Other rable
Europe basis States basis countries basis
-------------------------------------------------------------------------
Lovenox(R) 186 +7.5% 385 +7.8% 63 +12.5%
Plavix(R) 423 +2.9% 22 -63.9% 124 +20.4%
Stilnox(R)/
Ambien(R)/
Ambien CR(TM) 22 -8.3% 555 +54.2% 29 31.8%
Taxotere(R) 198 +13.8% 168 +4.3% 83 +13.7%
Eloxatin(R) 109 -24.3% 245 9.9% 39 0.0%
Lantus(R) 148 +14.7% 270 +31.7% 40 +53.8%
Copaxone(R) 78 +18.2% 197 +17.3% 14 +16.7%
Aprovel(R) 209 +5.0% - - 55 +19.6%
Tritace(R) 118 -11.9% 1 -75.0% 92 +5.7%
Allegra(R) 17 +21.4% 92 +21.1% 92 +22.7%
Amaryl(R) 32 -41.8% 2 -33.3% 60 +3.4%
Xatral(R) 44 -29.0% 25 +47.1% 13 +8.3%
Actonel(R) 51 -20.3% - - 27 +17.4%
Depakine(R) 53 -3.6% - - 23 +9.5%
Nasacort(R) 13 30.0% 60 +25.0% 6 -14.3%
-------------------------------------------------------------------------
Comments by product
-------------------------------------------------------------------------
Net sales of Lovenox(R), the leading low molecular weight heparin on the
market, reached (euro)634 million in the first quarter, a rise of 8.2%. Growth
of the product continues to be driven by its increasing use in medical
prophylaxis.
Filing for approval of Lovenox(R) as a treatment for patients suffering
from acute ST-segment elevation myocardial infarction (ExTRACT study) took
place in the fourth quarter of 2006 in both Europe and the United States,
where the FDA granted a priority review. This new indication is expected to
further enhance the superiority of Lovenox over non-fractioned heparins.
The results of the PREVAIL study, showing the superiority of Lovenox(R)
over unfractionated heparin for reducing the risk of venous thrombo-embolism
in patients with acute ischemic stroke, were published in the April issue of
The Lancet.
The results of the EXCLAIM study, which is examining the benefits of an
extended Lovenox(R) regimen for prophylaxis of venous thrombo-embolism in
medicalized patients, will be presented at the International Society of
Thrombosis and Hemostasis (ISTH) Congress in July 2007.
Sales of Plavix(R) raw materials to the United States, which are
consolidated by sanofi-aventis, remained weak in the first quarter
((euro)22 million, down 64%) due to the availability in the United States of a
generic version of clopidogrel bisulfate 75 mg tablets. Excluding this effect,
consolidated net sales of Plavix(R) would have risen by 6.4% in the quarter.
First-quarter net sales of Ambien(R) IR/Ambien CR(TM) in the United States
rose by 54.2% to (euro)555 million, a figure which includes (euro)149
million for Ambien CR(TM) ($195 million). The market share of Ambien(R) IR
/Ambien CR(TM) reached 46.3% in March (IMS NPA March 2007). At end March,
prescriptions of Ambien CR(TM) represented 31.3% (IMS NPA weekly) of total
Ambien(R) brand prescriptions.
Ambien(R) IR is facing competition from generics in the US, as its
protection expired on April 20, 2007.
In Japan, sales of Myslee(R) (not consolidated by sanofi-aventis) reached
(euro)24 million in the first quarter, an increase of 8.4%.
Taxotere(R) reported strong first-quarter growth in "Other countries"
(13.7%) and Europe (13.8%). In the United States, where the competitive
environment remains challenging, net sales of the product rose by 4.3%.
Taxotere(R) is now being sold in its two new indications (gastric cancer,
head and neck cancer) in the United States and Europe.
In Europe, Eloxatin(R), which is facing competition from generics in some
countries (in particular Germany and the United Kingdom), reported a 24.3%
decline in net sales to (euro)109 million. In the United States, the product -
which is still the market-leading colorectal cancer treatment both as adjuvant
and in the metastatic phase - achieved further growth (of 9.9%, to
(euro)245 million).
Lantus(R), the world's leading insulin brand, continues to record
excellent performances. Net sales of the product rose by 31.7% in the United
States and 53.8% in "Other countries". Solostar(R), a new disposable pen that
can be used to administer Lantus(R) and/or the rapid-acting insulin Apidra(R),
is gradually being rolled out across Europe from April, following the initial
launch of Lantus(R) Solostar(R) in Germany. Solostar(R) reduces the force
needed to inject insulin by 30% relative to the most commonly-available pens.
It is also the only disposable multi-dose pen able to deliver doses of up to
80 units of insulin adjustable in 1-unit steps. Lantus(R) Solostar(R) has been
approved by the FDA at the end of April.
Allegra(R) recorded a strong start to the year in Japan due to an early
start to the pollen season.
As part of the agreements with Altana Pharma (member of the Nycomed group)
concerning Alvesco(R) (ciclesonide) in the US, Sanofi aventis has informed its
partner on April 17, 2007 of its decision to transfer back its rights related
to Alvesco(R) (ciclesonide). The Group's collaboration with Nycomed for the
development and the commercialization of the combination product of
ciclesonide with formoterol in the US continues.
Acomplia(R) is now available in over 10 European countries. It has been
available in France since March 2007, and is reimbursable for obese patients
with type 2 diabetes uncontrolled by metformin or sulphonylurea. In early
April, the product was granted marketing approval in Switzerland and is
reimbursed for the treatment of type 2 diabetics overweight patients and for
the treatment of patients with obesity. At the end of April, Acomplia has been
approved in Brazil for the treatment of obese patients, or overweight patients
with associated risk factors, such as type 2 diabetes or dyslipidemia.
Acomplia(R) is also available in Argentina, Mexico and Chile. First-quarter
net sales totaled (euro)15 million.
The SERENADE dossier was filed with the European healthcare authorities in
December 2006 and with the FDA in February 2007. This study showed significant
improvements in blood sugar control and weight, as well as in other risk
factors such as HDL-cholesterol (good cholesterol) and triglycerides, when
compared to placebo in type 2 diabetes patients not currently treated with
anti-diabetic medications.
In the United States, rimonabant is on the agenda for the Endocrinologic
and Metabolic Drugs Advisory Committee Meeting to be held on June 13, 2007.
The FDA action letter is due on July 26, 2007.
Worldwide presence(1) of Plavix(R) / Iscover(R):
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Change on a
(euro) million Q1 2007 comparable
basis
-------------------------------------------------------------------------
Europe 448 +5.4%
United States 603 -7.4%
Other countries 183 +18.1%
-------------------------------------------------------------------------
TOTAL 1,234 +0.2%
-------------------------------------------------------------------------
On August 8, 2006, Apotex announced that it had launched a generic version
of clopidogrel bisulfate 75 mg tablets in competition with Plavix(R) in the
United States. On August 31, 2006, the U.S. District Court for the Southern
District of New York granted the motion filed by sanofi-aventis and
Bristol-Myers Squibb for a preliminary injunction and ordered Apotex to halt
sales of its generic version of clopidogrel bisulfate. However, the Court did
not order the recall of products already sold by Apotex.
This preliminary injunction was upheld by the Court of Appeals for the
Federal Circuit in December 2006.
Consequently, U.S. sales of Plavix(R) rallied strongly in the first
quarter of 2007 to (euro)603 million (7.4% down versus the first quarter of
2006) after having been hit hard in the fourth quarter of 2006
((euro)273 million).
Total prescriptions (TRx) of clopidogrel bisulfate rose by 19.5%6 in the
quarter thanks to sustained promotional activity. In addition, a recent FDA
panel has recommended prolonged treatment for patients with drug eluting
stents.
On April 18, 2007, a U.S. subsidiary of sanofi-aventis received a subpoena
from the Attorney General of the State of New York requesting the production
of certain documents relating to the proposed settlement of the U.S. Plavix(R)
patent litigation against Apotex.
In Europe, first-quarter net sales of Plavix(R) were up 5.4% at
(euro)448 million, despite a further decline in German sales due to a marked
slowdown in the market and the effect of parallel imports.
In Japan, the two-week limit on prescriptions imposed by the Japanese
authorities will remain in force until May 2007. Quarterly sales of Plavix(R)
totaled (euro)4 million. The application relating to Plavix(R) as a treatment
for acute coronary syndrome was filed with the Japanese authorities at the end
of 2006.
Worldwide presence(1) of Aprovel(R)/Avapro(R)/Karvea(R):
-------------------------------------------------------------------------
Change on a
comparable
(euro) million Q1 2007 basis
-------------------------------------------------------------------------
Europe 227 +7.1%
United States 123 +15.0%
Other countries 93 +19.2%
-------------------------------------------------------------------------
TOTAL 443 +11.6%
-------------------------------------------------------------------------
In the first quarter of 2007, the worldwide presence of Aprovel(R)/
Avapro(R)/Karvea(R) was represented by sales of (euro)443 million, up 11.6%.
Net sales of the product in the United States rose by 15.0% in the first
quarter, largely as a result of higher selling prices. In the same period,
total prescriptions of the product were stable6.
On April 18, the Cardio-Renal Advisory Committee of the FDA recommended
approval of Avalide(R) as initial treatment of hypertension. Avalide(R) is a
fixed-dose combination of irbesartan and hydrochlorothiazide that is currently
approved for the treatment of hypertension in patients with blood pressure
uncontrolled on monotherapy. If approved, the new indication for Avalide(R)
would be the first-line treatment of hypertension in patients who are unlikely
to obtain their blood pressure goals on monotherapy.
Net sales by business segment - Human Vaccines
First-quarter consolidated net sales for the human vaccines business were
(euro)567 million, an increase of 16.0%.
The strong increase in Adult Booster vaccines was a significant growth
driver. Sales of Adacel(TM) (adolescent & adult tetanus-diphtheria-pertusis
booster), launched in the United States in July 2005, reached (euro)67 million
for the quarter, up 133.3%. A new production facility, approved by the FDA in
August 2006, has provided additional capacity to address the growing demand
for Adacel(TM) and other pertusis vaccines.
Quarterly sales of influenza vaccines fell by 17.1% to (euro)58 million.
In the southern hemisphere, influenza vaccine sales rose by 14.4%, while sales
fell in the United States based on a 2006 first-quarter comparative that was
boosted by the extension of the 2005 vaccine campaign and stockpile purchases
by the Centers for Disease Control and Prevention.
Menactra(R) reported net sales of (euro)75 million, representing
year-on-year growth of 53.7%, based on strong demand and increased
availability of supply.
-------------------------------------------------------------------------
Change on a
Q1 2007 comparable
(euro) million net sales basis
-------------------------------------------------------------------------
Polio/Pertusis/Hib Vaccines 181 +1.1%
Adult Booster Vaccines 125 +64.5%
Influenza Vaccines 58 -17.1%
Travel & other Endemics Vaccines 80 +5.3%
Meningitis/Pneumonia Vaccines 89 +48.3%
Other Vaccines 34 +21.4%
-------------------------------------------------------------------------
TOTAL 567 +16.0%
-------------------------------------------------------------------------
First-quarter sales at Sanofi Pasteur MSD, the joint venture with Merck &
Co in Europe, rose by 3.5% on a reported basis to (euro)149 million. This
trend reflects differences in the phasing of several tenders for inline
vaccines relative to the same period in 2006.
Gardasil(R) is now marketed by Sanofi Pasteur MSD in 18 European countries
including France, Germany, the United Kingdom and Italy. Spain will follow
during 2007. To date, the authorities in Germany, France, Italy, Austria,
Norway and Luxemburg have recommended the vaccination of girls and young women
against human papillomavirus.
Sanofi Pasteur MSD sales are not consolidated by sanofi-aventis.
Net sales by geographic region
-------------------------------------------------------------------------
Change on a
Q1 2007 comparable
(euro) million net sales basis
-------------------------------------------------------------------------
Europe 3,113 -1.3%
United States 2,492 +16.4%
Other countries 1,572 +10.9%
-------------------------------------------------------------------------
TOTAL 7,177 +6.9%
-------------------------------------------------------------------------
In Europe, the healthcare reforms introduced in France and Germany during
2006 continued to depress sales, which fell by 1.3% year on year. Germany
again reported a sharp fall, as parallel imports of Plavix(R) and Lovenox(R)
continued. France is also experiencing negative growth, but was helped by
winter pathologies. The gradual introduction of Eloxatin(R) generics across
Europe accounted for 1% of the first-quarter decline in the region's net
sales.
The United States reported robust sales growth in the first quarter,
thanks largely to strong performances for Ambien(R)/Ambien CRTM, Lantus(R),
and vaccines.
Growth in "Other countries" reached 10.9%, and was once again driven by
Latin America and Asia.
2007 first-quarter adjusted consolidated income statement
The adjusted consolidated income statement is presented in Appendix 3.
Refer to Appendix 1 for a definition of "adjusted net income", and to
Appendix 4 for a reconciliation of the consolidated income statement to the
adjusted consolidated income statement.
Net sales generated by sanofi-aventis in the first quarter of 2007 rose by
2.0% on a reported basis to (euro)7,177 million.
Gross profit was (euro)5,569 million. The gross margin ratio was unchanged
relative to the first quarter of 2006 at 77.6%, reflecting two contrasting
trends:
- a drop in "Other revenues" (royalties) from (euro)289 million to
(euro)256 million, mainly as a result of the discontinuation of royalty
income from Merial on Fipronil and the decline in sales of Plavix(R) in
the United States because of competition from a generic version;
- an improvement of 0.5 of a point (to 26.0%) in the ratio of cost of
sales to net sales, thanks to a favorable product mix.
Research and development expenses were 3.3% higher at (euro)1,081 million
(around 7% excluding currency impact).
Selling and general expenses were 8.6% lower than in the first quarter of
2006 at (euro)1,873 million, equivalent to 26.1% of net sales (against 29.1%
in the comparable period of 2006). As well as the weakness of the dollar
against the euro during the first quarter of 2007, sanofi-aventis continued
with the measures implemented in 2006 to adapt to the changing industry
environment.
Other current operating income and expenses showed net income of
(euro)137 million, against (euro)91 million in the first quarter of 2006.
Operating income - current(1) was up 12.4% at (euro)2,719 million,
equivalent to 37.9% of net sales, 3.5 points higher than in the first quarter
of 2006.
A charge of (euro)22 million was recognized in the first quarter of 2007
on the continuation of the restructuring plan initiated in France during 2006.
Operating income was (euro)2,697 million, down 8.6%. This decrease was due
to the fact that the 2006 first-quarter figure included net gains on disposals
of (euro)550 million, arising mainly on the disposals of the rights to
Exubera(R) ((euro)460 million, (euro)384 million net of tax) and of the
residual interest in the Animal Nutrition business ((euro)45 million,
(euro)31 million net of tax).
Net financial expense came to (euro)32 million, compared with
(euro)30 million in the first quarter of 2006. Interest expense on debt was
(euro)56 million, against (euro)73 million in the comparable period of 2006.
Income tax expense was (euro)595 million, compared with (euro)832 million
in the first quarter of 2006. The reported tax rate was 22.3%, against 28.5%
for the comparable period of 2006. In 2007, this line included a net gain of
(euro)223 million related to net reversal of provisions for tax
risks/resolution of tax audits, while in 2006 income tax expense was favorably
impacted by the reduced tax rate charged on the gain on disposal of
Exubera(R). Excluding these two items, the effective tax rate was 30.7%, the
same as in the first quarter of 2006.
The share of profits from associates was (euro)159 million, compared with
(euro)181 million in the first quarter of 2006. This line was primarily
affected by a drop in the share of after-tax profits from territories managed
by BMS (primarily the United States) under the Plavix(R) and Avapro(R)
alliance ((euro)99 million, versus (euro)113 million in the first quarter of
2006) due to the availability of a generic version in the United States.
Minority interests totaled (euro)112 million, against (euro)97 million in
the first quarter of 2006. This line includes the share of pre-tax profits
paid to BMS from territories managed by sanofi-aventis ((euro)107 million,
against (euro)94 million in the first quarter of 2006).
Adjusted net income was down 2.6% at (euro)2,117 million.
Adjusted earnings per share (EPS) was (euro)1.57, 3.1% lower than the 2006
first-quarter figure of (euro)1.62, based on an average number of shares
outstanding of 1,351.1 million in the first quarter of 2007 and
1,344.4 million in the first quarter of 2006.
Adjusted net income excluding selected items (see Appendix 5) was
(euro)1,909 million, 11.8% higher than the 2006 first-quarter figure of
(euro)1,707 million.
Adjusted earnings per share excluding selected items (see Appendix 5) was
(euro)1.41, 11.0% higher than the 2006 first-quarter figure of (euro)1.27.
Net debt, which was (euro)5.8 billion at end December 2006, stood at
(euro)4 billion as of March 31, 2007.
2007 guidance raised
Based on the good results achieved in the first quarter of 2007, the
company has raised its 2007 full-year adjusted EPS growth guidance from 6% to
9% (excluding selected items2/3).
Barring major adverse events (such as major adverse events on Lovenox(R)
and Plavix(R) in the United States), the Group expects a growth in 2007
adjusted EPS excluding selected items in the range of 9%, calculated using a
rate of (euro)1 = $1.25, despite the end of protection for Ambien(R) IR in the
United States in April and the arrival of generic competition for Eloxatin(R)
in Europe. Sensitivity to the euro/ dollar exchange rate is estimated at 0.6%
of growth for a 1-cent movement in the exchange rate(4).
Forward-Looking Statements
This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
are statements that are not historical facts. These statements include
financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives, intentions and expectations with
respect to future events, operations, products and services, and statements
regarding future performance. Forward-looking statements are generally
identified by the words "expect," "anticipates," "believes," "intends,"
"estimates," "plans" and similar expressions. Although sanofi-aventis
management believes that the expectations reflected in such forward-looking
statements are reasonable, investors are cautioned that forward-looking
information and statements are subject to various risks and uncertainties,
many of which are difficult to predict and generally beyond the control of
sanofi-aventis, that could cause actual results and developments to differ
materially from those expressed in, or implied or projected by, the
forward-looking information and statements. These risks and uncertainties
include those discussed or identified in the public filings with the SEC and
the AMF made by sanofi-aventis, including those listed under "Risk Factors"
and "Cautionary Statement Regarding Forward-Looking Statements" in the
sanofi-aventis annual report on Form 20-F for the year ended December 31,
2006. Other than as required by applicable law, sanofi-aventis does not
undertake any obligation to update or revise any forward-looking information
or statements.
Recent Events
-------------------------------------------------------------------------
February 12, 2007 Announcement of revisions to the prescribing
information for Ketek(R) in the United States
-------------------------------------------------------------------------
February 13, 2007 Announcement that the review period for the
Acomplia(R) filing in the United States had been
extended by 3 months to July 26, 2007
-------------------------------------------------------------------------
February 23, 2007 Presentation to the ASCO Prostate Cancer Symposium
of long term survival results from the TAX 327
Phase III clinical trial, which evaluated a
Taxotere(R) based regimen in patients with
metastatic hormone refractory prostate cancer
-------------------------------------------------------------------------
March 16, 2007 Announcement that European launches of Lantus(R)
SoloSTAR(R) and Apidra(R) SoloSTAR(R) would begin
in April 2007
-------------------------------------------------------------------------
March 22, 2007 Announcement of reimbursable status for Acomplia(R)
in France for obese patients with type 2 diabetes
-------------------------------------------------------------------------
March 26, 2007 Announcement that rimonabant had been put on the
agenda for the Endocrinologic and Metabolic Drugs
Advisory Committee Meeting to be held on
June 13, 2007
-------------------------------------------------------------------------
March 28, 2007 Announcement by sanofi-aventis and Oxford BioMedica
of the signature of an exclusive global license
agreement to develop and commercialize TroVax(R)
for the treatment and prevention of cancers
-------------------------------------------------------------------------
March 30, 2007 Announcement of an update to the European Summary
Of Product Characteristics (SmPC) for Ketek(R)
-------------------------------------------------------------------------
April 2, 2007 Announcement of the transfer of all the commercial
rights for Panaldine(R) in Japan from Daiichi to
sanofi-aventis
-------------------------------------------------------------------------
April 3, 2007 Announcement of marketing approval for Acomplia(R)
in Switzerland
-------------------------------------------------------------------------
April 17, 2007 Announcement of approval by the FDA of the sanofi
pasteur H5N1 vaccine
-------------------------------------------------------------------------
April 20, 2007 Announcement of publication of the PREVAIL study
(Prevention of VTE after Acute Ischemic Stroke with
LMWH Enoxaparin) in the April issue of The Lancet
-------------------------------------------------------------------------
April 20, 2007 Announcement of reimbursement of Acomplia(R)
(rimonabant) in Switzerland for the treatment of
Type 2 Diabetics Overweight Patients and for the
treatment of Patients with Obesity
-------------------------------------------------------------------------
April 26, 2007 Announcement of approval of Acomplia(R) in Brazil
for the treatment of obese patients, or overweight
patients with associated risk factors, such as type
2 diabetes or dyslipidemia
-------------------------------------------------------------------------
April 30, 2007 Announcement of approval of Lantus(R)SoloSTAR(R)
by the FDA
-------------------------------------------------------------------------
Financial Timetable
-------------------------------------------------------------------------
-------------------------------------------------------------------------
May 31, 2007 Shareholders' Annual General Meeting
-------------------------------------------------------------------------
August 1, 2007 2007 second-quarter sales and results
-------------------------------------------------------------------------
September 17, 2007 Research and Development meeting
-------------------------------------------------------------------------
October 31, 2007 2007 third-quarter sales and results
-------------------------------------------------------------------------
---------------------------------
(1) Refer to the Appendix 1 for definitions of financial indicators
(2) See Appendix 5
(3) Excluding selected items, 2006 adjusted EPS was 4.88 euros
(4) Based on Q1 2007 average euro/dollar exchange rate
(1 euro = 1,31), adjusted EPS growth guidance excluding
selected items would be around 5.4%
(5) Q1 2006 comparable net sales
(6) IMS NPA Q1 2007
Appendices
List of Appendices
-------------------------------------------------------------------------
Appendix 1: Explanatory notes/ Financial indicators
Appendix 2: 2007 first-quarter net sales by product
Appendix 3: 2007 first-quarter adjusted consolidated financial statements
Appendix 4: 2007 first-quarter reconciliation of consolidated income
statement to adjusted consolidated income statement
Appendix 5: Trends in selected adjusted income statement items, net of
tax
Appendix 1: Explanatory notes/ Financial indicators
-------------------------------------------------------------------------
Comparable net sales
When we refer to the change in our sales on a "comparable" basis, we mean
that we exclude the impact of exchange rate movements and changes in Group
structure (acquisitions and divestments of interests in entities and rights to
products, and changes in consolidation method for consolidated entities).
We exclude the impact of exchange rates by recalculating sales for the
prior period on the basis of exchange rates used in the current period. We
exclude the impact of acquisitions by including sales from the acquired entity
or product rights for a portion of the prior period equal to the portion of
the current period during which we owned them, based on sales information we
receive from the party from whom we make the acquisition.
Similarly, we exclude sales in the relevant portion of the prior period
when we have sold an entity or rights to a product.
For a change in consolidation method, the prior period is recalculated on
the basis of the method used for the current period.
Reconciliation of 2006 first-quarter net sales to 2006 first-quarter
comparable net sales
-------------------------------------------------------------------------
(euro) million Q1 2006
-------------------------------------------------------------------------
Q1 2006 net sales 7,035
-------------------------------------------------------------------------
Impact of changes in Group structure (16)
-------------------------------------------------------------------------
Impact of exchange rates (308)
-------------------------------------------------------------------------
Q1 2006 comparable net sales 6,711
-------------------------------------------------------------------------
Worldwide presence of a product
When we refer to the "worldwide presence" of a product, we mean our
consolidated net sales of that product, minus sales of the product to our
alliance partners plus non-consolidated sales made through our alliances with
Bristol-Myers Squibb on Plavix(R)/Iscover(R) (clopidogrel) and
Aprovel(R)/Avapro(R)/Karvea(R) (irbesartan), based on information provided to
us by our alliance partner.
Operating income - current
We define "operating income - current" as operating income before
restructuring, impairment of property, plant and equipment and intangibles,
gains/losses on disposals, and litigation.
Adjusted net income
We define "adjusted net income" as accounting net income after minority
interests (determined under IFRS) adjusted to exclude (i) the material impacts
of the application of purchase accounting to acquisitions and (ii)
acquisition-related integration and restructuring costs. Sanofi-aventis
believes that eliminating these impacts from net income gives investors a
better understanding of the underlying economic performance of the combined
Group.
The material impacts of the application of purchase accounting to
acquisitions, primarily the acquisition of Aventis, are as follows:
- Charges arising from the remeasurement of inventories at fair value,
net of tax;
- Amortization/impairment expense generated by the remeasurement of
intangible assets, net of tax;
- Any impairment of goodwill.
Sanofi-aventis also excludes from adjusted net income any integration and
restructuring costs (net of tax) that are specific to the acquisition of
Aventis by sanofi-aventis.
-------------------------------------------------------------------------
Q1 2007
Q1 2007 Adjusted
Consolidated consolidated
(euro) million financial financial
statements statements
(unaudited) (unaudited)
-------------------------------------------------------------------------
Net sales 7,177 7,177
-------------------------------------------------------------------------
Net income after minority interests 1,537 2,117
-------------------------------------------------------------------------
Basic earnings per share 1.14 1.57
-------------------------------------------------------------------------
Appendix 2: 2007 first-quarter net sales by product
-------------------------------------------------------------------------
Q1 2006 Q1 2006
Q1 2007 comparable reported
(euro) million net sales net sales net sales
-------------------------------------------------------------------------
Lovenox(R) 634 586 624
Plavix(R) 569 575 580
Stilnox(R)/Ambien(R)/Ambien CR(TM) 606 406 441
Taxotere(R) 449 408 430
Eloxatin(R) 393 406 429
Lantus(R) 458 360 382
Copaxone(R) 289 246 263
Aprovel(R) 264 245 248
Tritace(R) 211 225 235
Allegra(R) 201 165 180
Amaryl(R) 94 116 121
Xatral(R) 82 91 94
Actonel(R) 78 87 89
Depakine(R) 76 76 78
Nasacort(R) 79 65 71
-------------------------------------------------------------------------
TOTAL 4,483 4,057 4,265
-------------------------------------------------------------------------
Other products 2,127 2,165 2,258
-------------------------------------------------------------------------
TOTAL Pharmaceuticals 6,610 6,222 6,523
Vaccines 567 489 512
TOTAL Net sales 7,177 6,711 7,035
-------------------------------------------------------------------------
Appendix 3: 2007 first-quarter adjusted consolidated financial statements
-------------------------------------------------------------------------
2007 first-quarter adjusted consolidated financial statements (unaudited)
-------------------------------------------------------------------------
Q1 2007 Q1 2006
Adjusted Adjusted
consolidated consolidated
income as % income as %
(euro) million statement of net statement of net
(unaudited) sales (unaudited) sales % change
-------------------------------------------------------------------------
Net sales 7,177 100.0% 7,035 100.0% +2.0%
-------------------------------------------------------------------------
Other
revenues 256 3.6% 289 4.1% -11.4%
Cost of
sales (1,864) (26.0%) (1,867) (26.5%) -0.2%
-------------------------------------------------------------------------
Gross profit 5,569 77.6% 5,457 77.6% +2.1%
-------------------------------------------------------------------------
Research and
development
expenses (1,081) (15.1%) (1,046) (14.9%) +3.3%
Selling and
general
expenses (1,873) (26.1%) (2,050) (29.1%) -8.6%
Other
current
operating
income 191 - 119 - -
Other
current
operating
expenses (54) - (28) - -
Amortization
of
intangibles (33) - (33) - -
-------------------------------------------------------------------------
Operating
income -
current(*) 2,719 37.9% 2,419 34.4% +12.4%
-------------------------------------------------------------------------
Restructuring
costs (22) - - - -
Impairment
of PP&E and
intangibles - - (1) - -
Gain/loss on
disposals,
and litigation - - 533 - -
-------------------------------------------------------------------------
Operating
income 2,697 37.6% 2,951 41.9% -8.6%
-------------------------------------------------------------------------
Financial
expenses (83) - (109) - -23.9%
Financial
income 51 - 79 - -35.4%
-------------------------------------------------------------------------
Income before
tax and
associates 2,665 37.1% 2,921 41.5% -8.8%
-------------------------------------------------------------------------
Income tax
expense (595) (8.2%) (832) (11.8%) -28.5%
Reported
tax rate 22.3% - 28.5% - -
Share profit/
loss of
associates 159 - 181 - -12.2%
-------------------------------------------------------------------------
Consolidated
net income 2,229 31.1% 2,270 32.3% -1.8%
-------------------------------------------------------------------------
Minority
interests 112 - 97 - +15.5%
-------------------------------------------------------------------------
Net income
after
minority
interests 2,117 29.5% 2,173 30.9% -2.6%
-------------------------------------------------------------------------
Average
number
of shares
outstanding
(millions) 1,351.1 1,344.4
-------------------------------------------------------------------------
Earnings per
share
(in euros) 1.57 1.62 -3.1%
-------------------------------------------------------------------------
(*)Operating income before restructuring, impairment of PP&E and
intangibles, gains/losses on disposals, and litigation
Appendix 4: 2007 first-quarter reconciliation of consolidated income
statement to adjusted consolidated income statement
-------------------------------------------------------------------------
The adjustments to the income statement reflect the elimination of
material impacts of the application of purchase accounting to acquisitions,
primarily the acquisition of Aventis, amounting to (euro)580 million net of
deferred taxes (with no cash impact for the Group).
-------------------------------------------------------------------------
Q1 2007
Q1 2007 Adjusted
Consolidated Adjustments consolidated
(euro) million (unaudited) (unaudited)
-------------------------------------------------------------------------
Net sales 7,177 7,177
-------------------------------------------------------------------------
Other revenues 256 256
Cost of sales (1,864) (1,864)
-------------------------------------------------------------------------
Gross profit 5,569 5,569
-------------------------------------------------------------------------
Research and development
expenses (1,081) (1,081)
Selling and general expenses (1,873) (1,873)
Other current operating income 191 191
Other current operating expenses (54) (54)
Amortization of intangibles (919) 886 (a) (33)
-------------------------------------------------------------------------
Operating income - current(*) 1,833 886 2,719
-------------------------------------------------------------------------
Restructuring costs (22) (22)
Impairment of PP&E and
intangibles - -
Gain/loss on disposals, and
litigation - -
-------------------------------------------------------------------------
Operating income 1,811 886 2,697
-------------------------------------------------------------------------
Financial expenses (83) (83)
Financial income 51 51
-------------------------------------------------------------------------
Income before tax and associates 1,779 886 2,665
-------------------------------------------------------------------------
Income tax expense (268) (327)(b) (595)
Share profit/loss of associates 138 21 (c) 159
-------------------------------------------------------------------------
Consolidated net income 1,649 580 2,229
-------------------------------------------------------------------------
Minority interests 112 112
-------------------------------------------------------------------------
Net income after minority
interests 1,537 580 2,117
-------------------------------------------------------------------------
Average number of shares
outstanding (millions) 1,351.1 1,351.1
-------------------------------------------------------------------------
Earnings per share (in euros) 1.14 0.43 1.57
-------------------------------------------------------------------------
(*)Operating income before restructuring, impairment of PP&E and
intangibles, gains/losses on disposals, and litigation
The material impacts of the application of purchase accounting to
acquisitions (primarily the acquisition of Aventis) on the 2007 first-quarter
consolidated income statement are:
a) An amortization charge of (euro)886 million against intangible assets.
This adjustment has no cash impact on the Group.
b) Deferred taxes of (euro)327 million generated by the amortization
charge of (euro)886 million taken against intangible assets. This
adjustment has no cash impact on the Group.
c) In "Share of profit/loss from associates", a (euro)21 million charge
corresponding to amortization and impairment of intangibles (net of
tax). This adjustment has no cash impact on the Group.
Appendix 5: Trends in selected adjusted income statement items, net of
tax
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(euro) million Q1 2007 Q1 2006
-------------------------------------------------------------------------
Restructuring costs (15) -
-------------------------------------------------------------------------
Net gains/(losses) on disposals - 446(2)
-------------------------------------------------------------------------
Provisions for financial instruments ,
litigation, tax inspections and other items 223(1) 20
-------------------------------------------------------------------------
TOTAL after tax 208 466
-------------------------------------------------------------------------
(1) Net reversal of provisions for tax risks/settlement of tax audits:
(euro)223 million
(2) including:
- Exubera(R): (euro)384 million
- Animal Nutrition: (euro)31 million
-------------------------------------------------------------------------
REMINDER
8.00 am CET - WEBCAST
& CONFERENCE CALL (English) The 1st quarter 2007 sales and earnings
will be reviewed today by Mr. Hanspeter
Spek, Executive Vice-President,
Pharmaceutical Operations, Mr. Jean-Claude
Leroy, Executive Vice President, Finance
and Legal. The slides will be available on
http://www.sanofi-aventis.com. This
presentation will be followed by a Q&A
session.
CALL-IN NUMBERS The conference will also be available by
telephone via the following numbers:
France +33 (0) 1 70 99 42 87
UK +44 (0) 207 138 0843
USA +1 718 354 1152
AUDIO REPLAY Available online at
http://www.sanofi-aventis.com and through
the numbers below (until May 12, 2007):
France +33 (0) 1 71 23 02 48
UK +44 (0) 207 806 1970
USA +1 718 354 1112
Access code 3947621#
For further information: Michel Labie, Senior Vice President, Corporate
Communications; Jean-Marc Podvin, Vice President, Media Relations: + 33
1.53.77.42.23; Salah Mahyaoui, Vice President, Product Communications: + 33
1.53.77.40.31; www.sanofi-aventis.com; Media Relations Department: Paris:
+33.1.53.77.42.23, media-relations@sanofi-aventis.com
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