sanofi-aventis (SNY) Credit Suisse Healthcare Conference November 9, 2011 12:00 p.m. ET Executives Paul Chew - U.S. CSO/ CMO, SVP Analysts Jo Walton - Credit Suisse Presentation Jo Walton - Credit Suisse
The patent cliff. This is what the patent cliff looks like by component. And you see that the top one is Eloxatin but unlike the previous patent cliffs, Eloxatin has actually taken a slight uptick as the generic products have been withdrawn due to a court ruling until August of this year. But a significant loss in our products with Eloxatin, Aprovel, Lovenox, Plavix and others.On the bottom, you can see the percentage of total sales that, that represents. So that while it’s decreasing, it represents a smaller part of our total sales. And why is that, is that because – that’s because we have increasing sales from other sources. Notably you will see that Genzyme has contributed over the last two quarters and as percentage of total sales, our growth platforms in vaccines, OTC, generics, animal health. And Genzyme will become an increasingly larger part of the total sales picture, giving us a more sustainable pattern of growth and they’re freeing us somewhat from the ups and downs of the patent cliffs of the future. So this is the actual by component, growth in the growth platforms, which is 11.9% in the first nine months of this year. There’s overall growth in all of the segments, except for animal health. The animal health took a technical downturn because of two generic products for Frontline which have been withdrawn and so that will get back to a pattern of growth, I am sure. The innovative products in R&D is also continuing and I’m not going to talk about R&D in some detail, especially for the new products that have been recently submitted to FDA or EMA. Kynamro is a product from Genzyme. It’s a once-weekly subcutaneous injection for patients who are refractory to statins, who have high cholesterol. And I mean, very high cholesterol. These are patients with genetic basis of hypercholesterolemia. It’s called the familial heterozygous or the most severe form homozygous cholesterol. It's so bad. They need weekly apheresis to scrub their blood of excess LDL.
Why go through that? Because many of these people are dead by the age of 30 because of premature cardiovascular disease. Clearly it’s an unmet medical need, and Kynamro is an antisense oligonucleotide against Apo-B. Apo-B is not LDL. Apo-B is the carrier protein on which LDL sits. Without the carrier protein, you don’t have LDL. So it’s really shooting a horse from under the rider so to speak. But that horse also carries Lp(a) which is an even better predictor of cardiovascular disease.So Kynamro will reduce this LDL by 30% on average, even despite best therapy. So that has been filed in the EU in July and it will be filed in the next few months in the U.S. This is a company that made its big contribution in anticoagulants through Lovenox. Lovenox is a low molecular weight heparin. Semuloparin is an ultra-low molecular weight heparin. And in clinical studies, it has been shown to have efficacy that is comparable or superior. And in this case, to Lovenox, and in this case, Semuloparin and VTE prevention in cancer patients. Cancer patients have other problems besides their cancer, especially with longer survival and they have complications with venous thrombosis – painful venous thrombosis, not just in the legs but on the chest, in the arms and it can be a major cause of mortality. And so Visamerin will be the first product to show a prevention of venous thromboembolism in chemo patients, and that was just filed a couple of months ago. Lyxumia is our GLP-1 agonist – our GLP-1 agonist that’s in phase 3. It has also a companion trial called ELIXA. ELIXA is a cardiovascular prevention trial required by the FDA to show there is no excess risk. It’s required of all new anti-diabetic agents. But Lyxumia will be the first and only GLP-1 with the cardiovascular safety at the time of launch. Read the rest of this transcript for free on seekingalpha.com