Sanofi May Take Heavier Hit Than BMS Over Generic Plavix in Europe

Sanofi-Aventis may take the heavier hit in its partnership with Bristol-Myers Squibb as the anticoagulant Plavix goes generic in Europe.

The Eurozone gave a green light to six Plavix generics last week. Sanofi and BMS co-market the product in both the U.S. and Europe.

Although BMS is frequently mentioned in regard to its looming generic cliff, A look at their Q1 2009 earnings statements shows that the proportional effect of a generic Plavix will be worse for Sanofi than for BMS.

Sanofi had revenues of €7.1 billion last quarter, of which €1.7 billion came from Plavix. About €446 million in sales came from Europe. So Sanofi has 6 percent of its quarterly revenue on the line, at the most.

BMS had revenues of $5 billion, and total Plavix revenues of $1.4 billion. Of that, just $169 million were non-U.S. So BMS has only 3 percent of its total revenues at stake.

Thus, the impact looks twice as bad from Sanofi's point of view as it does from BMS's.

• Previously:
• BMS's Bodnar Caught in His Own Lies on Apotex-Plavix Deal
• BMS Settles Plavix Allegations for Pennies; Ex-CEO Dolan Vindicated (Slightly)
• BMS Sales Increase Masks Looming Patent Cliff Disaster
• Why a Pfizer Takeover of Bristol-Myers Squibb Seems Unlikely
• Bristol-Myers Squibb Plans $2.5 Bil. in Layoffs, Cuts