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UPDATE 1-EXCLUSIVE-Sanofi sees sales boost from H1N1 vaccine

Published 09/24/2009, 10:33 AM
Updated 09/24/2009, 10:36 AM
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* CEO sees H1N1 vaccine boosting sales this year and next

* expects to file H1N1 vaccine for EMEA clearance end-Oct

* needs to grow U.S. research but nothing big in the works

* looking to appoint over-the-counter drugs head

* share down 1.47 percent

(adds details and quotes)

By Caroline Jacobs

PARIS, Sept 24 (Reuters) - Sanofi-Aventis expects its H1N1 vaccine that targets the swine flu virus to boost to its revenues this year and next, the head of the French drugmaker told Reuters in an interview.

"There's going to be a significant revenue opportunity, both this year and next year," Chris Viehbacher said on Thursday. "It's a nice short-term boost for sales and cash flow."

Sanofi Pasteur, the vaccine division of Sanofi-Aventis, earlier this month won an additional order from the U.S. health department for its H1N1 vaccines, taking the total to 75.3 million doses.

Sanofi-Aventis expects to submit its H1N1 vaccine with the European Medicines Agency (EMEA) by the end of October and Viehbacher expected approval to take up to six weeks.

Viehbacher, who took the helm in December 2008, said the company had no plans to alter it strategy of making acquisitions of up to 15 billion euros ($22.09 billion) in market value while preferring to avoid big takeveovers.

"I'm not going to change a strategy that has been successful," he said.

"I still remain skeptical about big mergers," he added.

Sanofi has several blockbuster drugs such as blood-thinner Plavix and cancer treatment Taxotere.

Sanofi has a market capitalisation of some $100 billion, which makes it sixth in the world after Johnson & Johnson , Roche , Novartis , Pfizer and GlaxoSmithKline -- the former employer of Viehbacher.

AIDS VACCINE

Viehbacher was speaking ahead of an expert presentation on a the clinical results of an experimental AIDS vaccine, made from two older versions, which showed made major progress in finding an effective way to combat the illness. [ID:nLO53122]

Sanofi's pipeline of drugs in development has become leaner following a rejig that left it with only the most promising candidates after Viehbacher put a halt to others.

Partnerships should help expand the pipeline again with a focus on the United States, the world's biggest drugmarket.

"I think we are underrepresented in research in the U.S." Viehbacher said. "Today you want to be able to capture the best science everywhere. I'd certainly like to strengthen our presence there," he said, adding "nothing major is cooking".

Sanofi earlier this year bought U.S. biotech company BiPar whose candidate drug BSI-201 which seeks to treat cancers including breast and ovarian, is seen as a potential blockbuster.

Rather than cost savings, Sanofi's takeover strategy focuses on boosting its revenues as the company is facing a number of patent expiries on several of its top-selling drugs, making it vulnerable to cheaper copies made by generic drugmakers.

NO MEGA MERGER

Instead of mega-mergers and a focus solely on finding the next multi-billion euro blockbuster drug, Sanofi seeks to grow its business by expanding its existing platforms, like vaccines, generics and over-the-counter drugs, which can be bought without a prescription.

It is aiming to turn its OTC business, which includes Sanofi's best-selling drug in France Doliprane paracetamol, into a division with a head of its own who should be able to double sales in next five years from 1.3 billion euros in 2008.

"We are in the process of trying to nominate someone," Viehbacher said.

In a first move to expand its widespread OTC business, Sanofi last year bought Australia's Symbion, which also makes vitamin supplements.

Sanofi shares were down 1.47 percent at 50.11 euros at 1430 GMT, after a 12 percent rise sofar this year.

For fundamental data about this company, please double click on http://xtra.session.rservices.com/rcardxtra?RIC=SASY.PA

For a Geneva story on WHO saying drug firms can make H1N1 vaccines for half the planet see [ID:nLO127713]

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