Sanofi-aventis Announces 2007 Earnings Ahead of Guidance Sharp Rise in Propose...(48.8million in the fourth quarter of 200...),Health

Excluding selected items (see Appendix 5), adjusted net income was euro 1,429 million, 4.5% up on the fourth quarter of 2006 (euro 1,368 million), and adjusted EPS was euro 1.07, 5.9% up on the fourth quarter of 2006 (euro 1.01).

Expressed in U.S. dollars(2) and excluding selected items, adjusted net income was $2,071 million (up 17.3% on the 2006 fourth-quarter figure) and adjusted EPS was $1.55 (up 18.3% on the 2006 fourth-quarter figure).

(2) U.S. dollar figures obtained by translating euro-denominated figures at the average exchange rate for the period: 1.449 for Q4 2007 (1.290 for Q4 2006) and 1.371 for FY 2007 (1.256 for FY 2006)

2007 full year

Sanofi-aventis generated 2007 full-year net sales of euro 28,052 million, down 1.1% on a reported basis.

Gross profit was down 1.4% at euro 21,636 million. The gross margin ratio was 77.1%, versus 77.3% in 2006. The availability of generics of Ambien(R) IR from April 2007 adversely affected the ratio of cost of sales to net sales, which rose from 26.6% to 27.0%. The weakening dollar and the discontinuation of royalties on fipronil restricted growth in other revenues to 3.5% (to euro 1,155 million), despite strong growth for Plavix(R) in the United States.

Research and development expenses rose by 2.4% (5.5% excluding the effect of exchange rates).

The cost adaptation measures initiated in 2006 and 2007, combined with tight cost control, helped to reduce the ratio of selling and general expenses to net sales by additional 1.4 points compared with 2006, to 26.9%. Overall, selling and general expenses fell by 5.8% year on year, to euro 7,554 million. Excluding the effect of exchange rates, selling and general expenses decreased by 2.1%.

Other current operating income (net of expenses) totaled euro 215 million, against euro 275 million in 2006. In 2007, this line includes an expense of euro 61 million (euro 42 million
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