Sanofi ups EPS, expects Genzyme to miss production CVR
* Raises 2011 business EPS, sees drop of 2-5 pct vs 2010
* Sees cost savings from Genzyme takeover at $700 mln
* Says Genzyme likely to miss milestone on drug production
* Q2 net down 13 pct at 2.15 bln euros, sales 8.35 bln
PARIS, July 28 (Reuters) - French drugmaker Sanofi 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 included Genzyme, a specialist in rare diseases, fully in its accounts after it bought it for $20.1 billion in cash and milestone payments that are tied to future performance of its products.
Sanofi said Genzyme's integration should yield $700 million in cost savings by the end of 2013. Genzyme should help Sanofi overcome lower sales of drugs that are losing patent protection and hitting net profit which fell 13 percent in the second quarter.
Sanofi deemed it unlikely Genzyme would meet a milestone tied the production of Cerezyme and Fabrazyme. The two key rare disease drugs were in short supply due to contamination problems that led to the temporary closure of Genzyme's Allston plant near Boston in 2009.
While patients on Cerezyme were able to return to normal dosing levels since the beginning of this year, patients on Fabrazyme so far has failed to meet normal dosing level needs. Expectations were for its full recovery in the fourth quarter. Suite...