Sanofi (France)'s Genzyme Corporation Right Plunges as 2011 Payment Not Expected, Will Miss Milestones; 2Q Earnings Fall 41 Percent, Confirms Development Plans for Late-stage Drug Prospects

French drugmaker Sanofi (Paris:SASY.PA - News) raised its earnings forecast for 2011 now that Genzyme is part of its business, but said the U.S. biotech would likely miss its first milestone fee due to supply constraints of one of its key drugs. The French drugmaker for the first time fully included Genzyme, a specialist in rare diseases, in its accounts after buying it for $20.1 billion in cash and milestone payments tied to future performance of its products. Sanofi said Genzyme's integration should yield $700 million in cost savings by the end of 2013. Sanofi, whose second quarter net profit fell 13 percent, is getting squeezed by lower sales of drugs losing patent protection, a problem Genzyme should help remedy.

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