Fitch: sanofi-aventis can absorb Plavix sales loss

Fitch Ratings said the potential loss of U.S. Plavix sales due to early generic competition could be absorbed by French pharmaceuticals group sanofi-aventis SA (rated AA-/F1+, outlook stable).

Even as the Plavix generic hits the U.S. market immediately and reduces existing sales of Plavix accordingly, this is mitigated by sanofi-aventis' well diversified product portfolio and full product pipeline, Fitch said. In addition, only a small percentage of the company's sales is at risk from generic competition.

The agency said sanofi-aventis' fiscal year 2005 EBITDA margin of 37% is one of the highest among its European peers, despite the company's under-exposure to the most lucrative market - the U.S. market - where only 35% of its fiscal year 2005 direct sales were generated, and its low product concentration (the top product, Lovenox, generated 8% of group sales while its top five products accounted for 32%).

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