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Sanofi, the reconstruction of the research will be long

Sanofi is expanding its portfolio of medicines to be able to rise to valuation levels comparable to its peers, but it will take time, analysts say.

The French laboratory, shaken by the lapels of the anti-arrhythmic Multaq Iniparib and cancer, has made the past five years only two new products on the market (and Multaq Jevtana in prostate cancer). It plans to launch 19 drugs by 2015, six next year, but warns that it expects no more than 5% to 7% contribution to sales in this horizon.

Of "minibusters", ironically some analysts, however, willing to give time to a group that has appointed the head of its research Elias Zerhouni, a world-renowned scientist.Since that appointment, the European regulator, however, restricts the use of Multaq, and Iniparib proved a failure in the last phase of its development.

"Sanofi has made significant progress in improving the profitability of its research but we know the results in eight or nine years. We have to accept a long development cycle", says Michael Leacock, an analyst at RBS.

The group announced this year more positive Phase III, and for including Lemtrada Aubagio (multiple sclerosis), Zaltrap (colorectal cancer), Visamerin / Mulsevo (prevention of venous thrombosis) and Lyxumia (type II diabetes).It is the latter that analysts consider the most promising, with potential sales they estimate at about 600 dollars in 10 years.

DIFFICULT TRANSITION TO MANAGE

"This is a cohort of small to medium products that will not be enough to transform the group, but at least it has more risk (of the type of anti-obesity pills) Acomplia when suddenly a product may weigh 15% to 20% of sales and cause large deviation in the share price, "an expert in the field into perspective.

Three years after the failure of Acomplia and the arrival of CEO Chris Viehbacher, Sanofi has launched a strategy to find new sources of growth that does not depend on its research and especially not the 'blockbusters', these drugs can make more than one billion dollars in sales.

Spurred by the loss of its major patents, the group has drastically reduced its costs, carried out an extensive cleaning of its project portfolio and achieved a score of acquisitions exceeding 23 billion euros, 14.8 billion for the purchase of the U.S. biotech Genzyme.

These efforts now allow to predict an average growth in sales of at least 5% by 2015 and an increase in earnings per share higher than the turnover.

At Bryan Garnier, Eric Le Berrigaud believes that the next six launches of the group potential "of around four billion euros in full peak at the end of the decade, with an additional lever on Lemtrada if it turns out be sure. "

"Are we willing to pay 'upfront' history to be born again Sanofi in 2013, while it was still difficult to cross two years?" Asked he, however.

The title Sanofi, which has lost 13% in 2010, returned 3.5% since the beginning of the year.The stock is trading with an average ratio of price / earnings ratio (PER) expected to close in September, against nine for the European.

"There is a beautiful story of stock market recovery to play but it will not materialize quickly. The big challenge is to manage the transition between the death of the great product, the rise of products from the pipeline and related growth drivers strategy, such as diversification and emerging markets, "said one banking analyst.

Karl Heinz Koch, of Helvea, notes that "most of their products are secondary and are not first class."For him, the portfolios of Novartis and Bayer are better than Sanofi, which is comparable to those of Roche and GlaxoSmithKline, and similar but better than Merck and AstraZeneca.

Beatrice Muzard, Natixis, concedes that "Sanofi back a little better in terms of development," but believes that the group "is still far short of the very good students like Roche, Novartis and Glaxo same."

"It's not for the pipeline that we recommend buying the title," she adds. "What motivates us is the visibility of growth and the fact that the group has secured a growth of at least 5%, a level that exceeds 60% as revenue grew at double-digit ".

EDF control 44 steam generators and Areva

EDF said on Wednesday an order for 44 steam generators for the renovation program of French nuclear power plants with a capacity of 1,300 Megawatts.

Areva and the U.S. company Westinghouse are assigned respectively the supply of 32 and 12 generators with a total of over 1.5 billion euros, EDF said in a statement.

For its part, Areva, which will receive $ 1.1 billion of that total, 16 states that the steam generators will be made available to the electrician in July 2016, eight in January 2017 and eight in January 2018.

This control of steam generators to the reactors with a capacity of 1300 MW is part of the program of gradual replacement of large components on power.

Each steam generator, weighing 438 tonnes, has an internal circuit consisting of 122 km of tubes for making steam, which then produce electricity via a large turbine.

All the tubes of steam generators will be manufactured in France at Montbard (Côte d'Or).

Economists call to erase half of the Greek debt

It should allow Greece to erase half of its debt and at the same time provide additional support to banks that have funded, say Tuesday in a forum of political advisors French and German.

Decisions taken on 21 July to control the debt crisis of the Greek are not sufficient, the judge in the Financial Times Deutschland a group comprising a committee of "wise men" German business, an adviser to the French government and an official of the Economic Review International Monetary Fund (IMF).

"Creditors should give about half of the nominal value of their Greek bonds," they write."So it would be possible for Greece to reduce its debt to a sustainable level by yourself."

The leaders of the euro area agreed on July 21 with a discount of 21% on Greek bonds by an exchange of indebtedness in Athens more time to repay loans. But many players still consider it inevitable failure wider Athens on its debt.

The authors of the platform of the Financial Times Deutschland ask it possible for banks to exchange securities against Greek bonds issued by the European Financial Stability (EFSF), to ensure a smooth restructuring process.

"In addition, banks holding large amounts of Greek sovereign bonds need special support," we read in the gallery."This is especially true for Greek banks."

Greek bank stocks Monday fell more than 6% to a low of 19 after news reports indicating a discount greater than expected on the debt of Athens, despite the denial of the Greek government.

Greek Prime Minister George Papandreou on Tuesday traveled to Berlin to meet German Chancellor Angela Merkel and discuss the progress of Athens in the implementation of fiscal reforms required in return for international aid.

Greek MPs should approve the meantime in the day an unpopular property tax, a new austerity measures intended to pave the way for the return of the inspectors of the "troika" – IMF, EU and European Central Bank – responsible for assessing whether Athens will receive the next tranche of aid decided in May 2010 and thus avoid bankruptcy.

Dexia would be willing to sell 20 billion euros of assets

Dexia Bank is ready to sell 20 billion euros of assets to restore its finances, Les Echos wrote in their Monday edition.

"The Franco-Belgian bank crystallizes the difficulties of his peers: its viability through the sale of assets too fast cash customers for nearly 20 billion euros," reads one in the business daily.

"Another lever is to externalize 80 billion of loans to local governments, but the modalities of this operation are still in limbo," the newspaper without elaborating.

A Dexia spokesman was unavailable for immediate comment this article.

Le Figaro wrote Saturday that Dexia, Caisse des Depots and Post Bank negotiated the creation of a new public to fund local government, an operation that would allow Dexia to reduce its balance sheet.

Requested by Reuters on Friday night, the three banks did not comment.

The governor of the Banque de France, Christian Noyer, said about Dexia that "the model faces a number of problems," in an interview with Journal du Dimanche.

"It must continue to restructure," he says.

The French authorities said Sunday that the system created in 2008 to help banks following the collapse of Lehman Brothers was always available on event "extraordinary".

However, they insisted that French banks, whose market value has shrunk in a few weeks, were strong and they did not need injections of public capital demanded by some stakeholders in the financial markets.

Soon Eurobond for good students?

Vice-President of the European Commission, Viviane Reding, proposes to create obligations for the European countries most solid. She wants to be a "rock in the middle of the storm." European Commissioner for Justice, Viviane Reding, called "irresponsible" attitude of France and Germany on the reform of the Stability Pact (here at a conference in Brussels REPSSI September 29, 2010)

The European Commission has raised the possibility Friday of Eurobonds restricted to six countries in the euro area receiving the highest rating by the agencies, among the options being considered to better face the future with debt crises excessive. This idea is supported personally by one of the vice-presidents of the EU executive, the Luxembourg Viviane Reding.

"The United States are in a difficult situation but have no problem with the bond market because it is so great" at home, argued Commissioner Reding, responsible for justice issues, in an interview published Friday by the German daily Hannoversche Allgemeine Zeitung. "This is why I propose that all states in the euro area receiving the highest rating, AAA-rated states – France, Germany, Luxembourg, Austria, Netherlands and Finland – are pooling their bond markets "she said.

Such a mechanism for sharing national public debt of the most solid would be "a rock in the middle of the storm," she said.The spokesman of the Commission, Pia Ahrenkilde, said in Brussels that this idea was part of various options under consideration within the EU executive, which plans soon to submit a feasibility report on Eurobonds with the various possible formulas.

"There are a number of options are discussed, the remarks of the Vice-President (Viviane Reding) must be seen in this context," she told reporters. The creation of such a pot of government borrowing by countries in the monetary union is seen by its promoters as the only lasting solution to the debt crisis by ensuring that fragile states are protected by the strongest . However, Germany refuses because she sees an incentive to fiscal laxity. Its Ministry of Finance rejected this mechanism again Friday, although limited to countries rated triple "A"."Our position has not changed" and "this is true whatever the composition of the group (country) which would be backed Eurobonds," said a spokesman for the Ministry in Berlin.

The deficit of the social security reduced to 14 billion in 2012

The government today introduced the project financing of social security for 2012. The deficit of the general expected to decline by one billion to 18.5 billion in 2011 down to about 14 billion or slightly less in 2012.

Valérie Pécresse said on Thursday, September 22 France 2 that the deficit of social security would be reduced to "14 billion" in 2012, adding that "for the health sector, the deficit will be less than 6 billion euros". The budget minister in the day to present the project financing of social security for 2012 (PLFSS). She said that the deficit of the health insurance was $ 12 billion in 2010. She assured that the deficit of social security would "fall in two years by 40%."

On pensions, "expenses are contained" through the "efforts of the French" and the pension reform of 2010, she said.Regarding the health insurance, the government decided to "delisted" certain drugs, but "very little, only the drugs useless." A list will be established by the Authority for Health and the Ministry of Health. This should bring 40 million euros. It is also envisaged that "over 600 million savings on drug prices." "We will ask the laboratory to lower drug prices," said the minister.

According to information obtained by AFP, the deficit all branches (sickness, old age, family, work injury / illness) is expected to decline by one billion to 18.5 billion in 2011 down to about 14 billion or slightly less in 2012. The deficit of sickness, most importantly, will fall below 10 billion in 2011.The government intends to pass it under the 6 billion next year, according to a source familiar with the matter. The latest available figures, given in June by the Commission of Audit of the Social Security (CCSS), reported a "hole" in the social security of $ 19.5 billion for 2011.

In a wider area, adding the deficit in the Old Age Solidarity Fund, which funds the minimum pension, the deficit would reach a total of just over 22 billion in 2011 and around 18 billion in 2012. In early September, in its annual report on Social Security, the Court of Auditors, taking the broadest scope (general, diet and other small FSV) was alerted to a deficit of close to 30 billion (29.8) .

CA and EPS slightly above expectations for Oracle

The specialist management software database Oracle reported Tuesday a quarterly revenue slightly exceeded expectations, despite a context of weak prospects for spending in the technology sector.

In after-hours trading, the value gained 1.3% after closing down 2.31% the Tuesday meeting.

The American group, which has diversified in the last year by buying the equipment server manufacturer Sun Microsystems, has a turnover of 8.37 billion dollars in its first fiscal quarter ended in August, an increase of 12% over the previous year.Wall Street expected $ 8.35 billion.

Sales of new software, guaranteeing revenue to come in the area of ​​maintenance, increased 17% against a 15% increase expected.

Net income rose to $ 1.84 billion, or 36 cents a share, Cutter $ 1.35 billion, or 27 cents per share a year earlier.

Excluding items, the profit amounted to 48 cents a share against 46 cents expected by the Thomson Reuters consensus I / B / E / S.

Quarterly dividend of six cents per share, payable on November 2.

The uncertainty on Greece are plunging stock markets

Paris opened on Monday morning, down 2.30%. If no decision within the euro area on the second bailout of Greece announced a new black day. The trading floor in Frankfurt

Divisions within the euro area on the Greek case and the problems of sovereign debt have to plunge again European stock markets Monday morning at the opening, banking stocks are once again very abused. The Paris Bourse opened a decline of 2.31%, 2.26% Frankfurt, London, 1.35%, Milan and Madrid by 2.6% from 2.51%.

In Paris banking stocks were the front line, BNP Paribas lost shortly after opening more than 3% and Societe Generale more than 6%. Same as in Frankfurt where Deutsche Bank lost 4.58% to 23.95 euros while that of Commerzbank fell by 4.36% to 24.01 euros.

"If no decision within the Ecofin early advocates for a tough week in the financial markets," said Christian Parisot Monday, economist at Aurel-BGC. The results of a meeting of EU finance ministers who were to consider the Greek case and the situation in the euro zone where European leaders have shown once again divided and little progress on the second aid plan Greece had already begun to engage in part the modest revival of optimism late last week.

European shares had done so in a disorganized, earning 1.18% Frankfurt, London and Madrid 0.58% 0.61% while Paris fell by 0.48% and 0.65% in Milan. Caution was also put in Friday on the eve of the weekend on Wall Street, where the Dow had gained 0.66% and the Nasdaq 0.58% at closing.

Monday, while no major economic indicator is expected, investors will be especially attentive at 1400 GMT, the Speech from the President of the United States, Barack Obama, which should offer a new deficit of 3.000 billion.

Parisot sees signs of contraction of credit to companies

The president of MEDEF, Laurence Parisot, fears a slight decline to the difficulties facing the banks. The president of MEDEF, Laurence Parisot (here in May 2010), estimates that the economic program of the National Front for the presidency would ruin France.

The president of MEDEF, Laurence Parisot, ruled Friday that there was "some micro-signs" pointing to a tightening of credit to businesses, but little else, while the current reduction of bank balance sheets is likely to cause dry credit.

"There are some micro-signs but no more than that. The banks have increased their credit to the economy in a fairly regular basis. The latest figures we have are rather reassuring. It is 4%," said Ms. Parisot on France Info.

"Of course we will be very careful.I call on the French banks today to maintain the effort they have undertaken since 2008 to support our VSE (very small) and our SMEs (Small and Medium Enterprises), "she said.

The prospect of entry into force of the new regulatory framework and Basel III said the current tensions in financial markets causing some difficulties in short-term funding of banks encourage institutions to strictly control and often reduce the size of their balance sheets . This can be done through asset sales or a reduction commitments, that is to say loans.

European markets end up, the CAC40 is 3.27%

European shares posted their third Thursday at the close win in a row, driven by the commitment of Paris and Berlin to keep Greece in the euro area.

In Paris, the CAC-40 ended up on 3.27% to 3045.62 points.

The European Central Bank (ECB) has also helped to sustain the upward movement of European stock. She said Thursday that it would conduct operations at a fixed rate to three months from October to December, offering to banks as many dollars as they want.

These operations are intended to amortize any drying up of liquidity that could occur later this year.

Banks in the euro area show a gain of 6%.BNP Paribas in particular gaining 13.4%, after surging 22% to the announcement of the ECB.

However, UBS ended the day on a loss of 10.8%.

A trader suspected of being linked to losses of some $ 2 billion announced Thursday morning by UBS was arrested in London, said on Thursday from several sources.