US & World News

Sanofi-Aventis said on Wednesday that its discussions regarding the acquisition of Genzyme progressing and that all options remained on the table for that operation.

Chris Viehbacher, the Director General of French pharmaceutical group, has refused to disclose any timetable for the review process for books ('due diligence') of the U.S. biotech that Sanofi was initiated in late January.

The title Sanofi stock market is limping along, especially as the forecast that the group has released this year are disappointing.

At 12:40, the Sanofi abandoned to 1.82% 50.21 euros, against a CAC 40 index virtually flat, giving a market capitalization of over $ 65.8 billion.

The title, which has lost 13% in 2010 when the European sector index of pharmacy took 6.2%, has regained ground and rose 5% since the beginning of this year.

Chris Viehbacher hid behind the confidentiality agreement signed with Genzyme to explain its discretion on this issue.

"Sanofi said 10 days ago have signed a confidential agreement with Genzyme. We continue to review non-public information. The discussions are progressing," he said."We're not going to set a deadline today."

Chris Viehbacher added that "all options remain on the table" regarding the proposed operation officially since last October at $ 69 per share Genzyme 18.5 billion, but according to sources familiar with the matter could be raised approximately $ 1.5 billion.

Many analysts expected that the outcome of the case Genzyme, which has lasted more than seven months to occur before the publication of annual results for Sanofi.

ZERO DEBT AT END OF FEBRUARY

In response to a question about a possible rise in the price of this bid, Jerome Contamine, Sanofi's chief financial officer, for his part said: "There is only one proposal, that $ 69 share."

Sanofi's debt, which amounted to 1.6 billion euros at end December 2010, should be "zero" in late February, he said, before adding: "The funding is therefore not a problem. "

Between 2008 and 2010, said Jerome Contamine, Sanofi has completed more than nine billion euros in acquisitions.

For Karl Heinz Koch, an analyst at Helvea in Zurich, the lack of announcement Wednesday regarding Genzyme takeover bid "is not a surprise because a deal of this magnitude takes time."However, he added, "is disappointing because the uncertainty continues."

Analysts estimate overall that the acquisition will be accretive to Genzyme for Sanofi but will not compensate by itself the problems associated with loss of several patents for its products and the disappointing results of some of its new treatments.

Sanofi has twice extended its offer for U.S. biotech time to examine its books and to structure an agreement around a certificate of conditional value (CCV) attached to Lemtrada, Genzyme's experimental treatment in multiple sclerosis.The current offer expires Feb. 15.

THE IMPACT OF THE REFORM OF HEALTH U.S.

In presenting its annual results, Sanofi said that net earnings per share of its activities in 2011 would be "less than 5% to 10% at constant exchange rates in EPS for 2010 activity", but that prospect did not include including the contribution of a possible acquisition of Genzyme.

The 2010 earnings per share stood at 7.06 euros, up 6.8% as reported and 2.6% at constant exchange rates.Sanofi had expected growth of between 0 and 2%.

For the fourth quarter, Sanofi announced a net profit of 1.838 million euros (1.775 million consensus), or 1.41 euro per share (1.35 euros consensus) on a turnover of 7.395 million (consensus 7501 million).

Over this period, sales of Lovenox (thrombosis) fell from 26.9% at constant exchange rates to 582 million (671 million consensus) due to generic competition in the United States. Taxotere (cancer), which lost its market exclusivity in the United States and its patent on the active ingredient in Europe, saw its sales plummet 20.1% to 456 million (552 million consensus).

Generic competition in Europe has affected the Plavix (thrombosis) whose sales fell 18.6% to 505 million (520 million consensus).By contrast, sales of Lantus, the first global brand in the field of diabetes rose from 8.6% to 894 million (928 million consensus).

In vaccines, Sanofi entered on the last three months of 2010 a breakthrough in sales of 12.6% (excluding vaccines against pandemic influenza recorded in Q4 2009) to 890 million euros (1.062 million consensus).

Chris Viehbacher said the reform would affect the health of U.S. $ 290 million in sales 2011, and falling prices in Europe would have an impact of 200 million euros.

Under the fiscal 2010, Sanofi plans to pay a dividend of 2.50 euros, against 2.40 euros a year earlier, with payment option in action.

The group also announced that reducing costs was progressing faster than expected with over 1.3 billion euros achieved in 2010. He said that his goal of two billion savings in 2013 would be achieved by 2011.

Faurecia announced Tuesday it returned to profit in 2010 thanks to a strong rebound in its business and its cost savings, allowing him to pay a dividend again.

The automotive supplier, 57.4% owned by PSA Peugeot Citroen, reached last year's net income, group share of 202 million euros, while he accused in 2009, the year of crisis, net loss of 434 million.

Its operating profit reached 456 million euros in 2010, against an operating loss of 92 million a year earlier, while its total revenue jumped 48% to 13.8 billion euros.

"Taking into account this strong return to profitability, the Board of Directors decided to propose at the next shareholders meeting in May 2011, a dividend of 0.25 euro per share," said Faurecia in statement.

The group was in the red for several years.He also recorded a net loss of 574.8 million euros in 2008 and $ 237.5 million in 2007.

For 2011, the year to be marked by an increase lightest of the world production of light vehicles – Faurecia expects between 6.5% and 7.0% – the group has set a goal of including the total turnover between 14.8 and 15.3 billion, which amounts to a growth of at least 7%.

There is also a net cash flow in excess of 200 million euros against 222 million in 2010.

The Faurecia share closed Monday at 25.66 euros, giving a market capitalization of nearly three billion euros. Since the beginning of the year, the stock has taken nearly 20%, after gaining nearly 40% throughout 2010.

Airbus does not improve its offer for the renewal of the tanker aircraft to the U.S. Air Force, said Saturday the executive chairman of Airbus.

"This is not our style to make adjustments early in the last minute," said Thomas Enders told Reuters in an interview on the sidelines of the 47th annual conference on security in Munich.

Enders said that Airbus had offered a very good offer for the contract while its American rival Boeing announced the "recent changes" to its proposal.

Airbus and Boeing to submit their final offers by February 11 after separate talks with officials from the U.S. Air Force on Monday.

The U.S. Air Force will issue in the weeks and months to come this contract initially on 179 aircraft to replace its fleet of KC-135 with a mean age of fifty. The contract value is estimated between 25 and 30 billion dollars (18 to 22 billion euros).

Sources close to the industry, indicates that the contract could be awarded on 25 February but that the decision of the U.S. Air Force will be carefully reviewed by officials of the Department of Defense, which could delay the beginning of March public announcement of the election.

Analysts expect the loser lodges an appeal, which could further delay of several years to purchase new "tanker".

Eurozone leaders, meeting in Brussels on Friday, want to increase the lending capacity of effective stabilization fund to 440 billion euros. In return, Berlin requires more discipline and better coordination of economic policies. Nicolas Sarkozy and Angela Merkel during a joint press conference, December 10, 2010.

Leaders of euro zone countries will lay the groundwork for an agreement on strengthening the capacity of their financial aid funds and the need to develop new tools, according to a draft statement to be adopted at a summit in Brussels Friday, February 4. In this text, obtained by AFP, the Heads of State and Government of 17 countries in monetary union, say they want to finalize the end of March a "comprehensive response" to better face the future with debt crises Take that failed last year in Greece and Ireland.

To this end, they ask their finance ministers of the "concrete proposals on strengthening the FESF (Fiscal Stabilization Fund, Ed) to ensure the necessary flexibility and affordability" adequate "to provide adequate support" for States in need. The declaration will be adopted as part of a European Union summit, devoted especially to the euro area.

Specifically, the relief fund set up last May will be available at least an effective lending capacity of 440 billion euros. Today it is officially has 440 billion euros but can not actually pay that 250 billion euros, the rest should be kept aside as a guarantee to enable the device to raise money at very attractive interest rate.Privately, European officials argue that the budget of 250 billion euros will be inadequate if one day help Portugal and especially Spain, the economy far more important in the face of new speculative attacks markets.

Germany prospose a "pact of competitiveness"

Raising the effective capacity of the Fund's lending will increase by assurances that he must bring the different countries of the euro area, starting with Germany and France. "Flexibility" means that increasing the Fund could be given new missions, such as repurchase of debt of countries in difficulty, or lend them money they do.But on this point, Berlin is still reluctant.

Price of the effort required, Berlin requires greater discipline Common Monetary Union countries and better coordination of national economic policies, in a form of economic government. Germany, together with France, intends to present Friday to its partners at the summit, a draft pact of competitiveness "in this sense. It provides that the capitals of the following common objectives for retirement, with a decline in the age of retirement if necessary, tax (base harmonization of corporation tax or minimum rate) of wage policy (with the removal of indexation on prices in countries that have), and debt with binding ceilings.

The debate promises to be complicated, however.Several developing countries, including Portugal, are very reluctant to accept what they see as a straitjacket, diplomats said. The draft agreement will be ratified Friday in Brussels is vague on this point. It merely asks the EU president Herman Van Rompuy conducting "consultations" to make a report. It is clarified that it will "cooperating closely" with the European Commission President Jose Manuel Barroso. It has already criticized the Franco-German project, seeing a risk of marginalization of the institution and the beginnings of a new "parallel structure" of the euro area, leading to "inconsistent".

Menier Michel, president of the Center for Young Business Leaders (CJD) is calling for a national debate on the tax system to end the levies that drain primarily work and consumption, little pollution, much less the use of natural resources. Are not you afraid that you defend social VAT, nibbling the purchasing power of households and ultimately weakens the engine of consumption that is traditionally French growth?

European experiences in Denmark since 1987 and Germany since 2007 (with 1 more point) prove otherwise. This broadening of the tax base levies, as social security contributions would no longer be paid solely by the assets, but by all consumers, young and old and even tourists, lower the cost of labor.Result: our prices abroad would decrease, thereby improving the competitiveness of our businesses. But the social VAT would also give meaning to the relocation of our industries, especially those of labor that are now the most attacked. It promotes the creation of wealth without which it is unrealistic to expect a return to full employment. Not to mention that by supporting the social VAT on imported products, it involves foreign goods to our own welfare.

More broadly, you propose to create a model of tax reversed. What is it?

The CJD is campaigning for a national debate about our system of redistribution and proposes a reversal of the fiscal hierarchy, in other words a tax reversed. Because today we walk on the head.Our system of tax at 70.7% the punctures, and then consumption and very little pollution and less use of natural resources. Under the current system, the tax burden of government Social Security accounts for 22% of national wealth and are primarily financed by payroll taxes on labor. Green levies, they weigh only 2.2% of GDP. Let me summarize by saying that the system of profiteering polluter pays and the worker. We must build a society based on the polluter pays and the worker-beneficiary. Besides the environmental tax is a carrier of social justice as the biggest polluters are usually the easiest. Reverse taxation is a royal way to balance public accounts, to redistribute more egalitarian and restore the competitiveness of French companies.

He earns 0.25 points. The rate had been raised for the first time last August.

As announced in mid-January, the rate of the Livret A increases Tuesday from 1.75% to 2%, after an initial increase in early August, offering him a spotlight. The Economy Minister Christine Lagarde announced on January 13 this increase, due to a slight acceleration of inflation used in the formula for calculating the rate.

After staying one year to the lowest level in its history, or 1.25%, the rate of the Livret A statement was the first time in early August 2010, at 1.75%. The Handbook of Sustainable Development (LDD), whose rate is identical to that of the Livret A, also sees its rate increased by a quarter point (0.25%).

After two record years in 2008 and 2009, the collection of the Livret A decreased in 2010. It amounted to 7.8 billion euros, twice less than in 2009 (16.55 billion euros).This performance remains well above the collection of 2007 (5.0 billion).