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PARIS (Reuters) – land drugmaker Sanofi-Aventis (SASY.PA) reportable progress in talks to acquire U.S. biotech firm (GENZ.O) as it predicted 5-10 proportionality modify earnings this year.

"As we announced most 10 life ago, we hit subscribed a confidentiality agreement with Genzyme," Chief Executive Chris Viehbacher said in a media conference call.

"We move to review non-public information. Talks are progressing and we'll ready you updated," he added.

The forecast drop in playing earnings per care (EPS), at unceasing mercantilism rates did not include some goodness from the doable acquisition of Genzyme, Sanofi said, nor the harmful personalty of a return of generic copies to cancer drug Eloxatin.

Sanofi and Genzyme, which specializes in medications for thin diseases, are hammering discover the details of a roughly $20 1000000000 deal, sources hit told Reuters.

Sanofi is due to improve its substance for Genzyme from its original $18.5 1000000000 change bid patch adding a fee equal to the action of Lemtrada, a key drug Genzyme is developing in binary sclerosis.

Sanofi has been forking discover its playing to offset a loss in income from papers expiries or challenges on its smash drugs, much as bloodthinners Lovenox and Plavix, that open up the possibility for cheaper copies to start the market.

"2010 was the prototypal assemblage in which the papers formation really became circumpolar with generic competition for several of our products, notably Lovenox in the U.S.," Viehbacher said.

Sanofi's fourth-quarter earnings exceeded shrink expectations, helped by outlay cuts which it expects module achieve 2 1000000000 euros this assemblage instead of in 2013 as it had previously targeted.

Business earning per share, excluding items same diminution and proceedings costs, were flat at 1.41 euros in the ordinal lodge of 2010, patch the cipher outcome of a Reuters poll was for 1.35 euros.

For the flooded assemblage and at unceasing mercantilism rates, playing EPS grew 2.6 percent, better than Sanofi's possess forecast for ontogeny of set to 2 proportionality compared with 2009.

Quarterly sales, however, protrusive expectations, edging up to 7.395 1000000000 euros compared with a Reuters consensus for 7.501 billion. The consort posted a playing operating income of 2.515 1000000000 against a consensus for 2.474 billion.

Sanofi proposed to process its annual dividend to 2.50 euros a care from 2.40 euros.

U.S. and dweller drugmakers, much as Novartis (NOVN.VX), AstraZeneca (AZN.L) and Sanofi's U.S. relation Bristol-Myers Squibb (BMY.N) hit presented cagy outlooks for 2011 as higher costs from U.S. healthcare reform module hurt a facet grappling with papers expirations and push to curb prices.

(Reporting by Caroline Jacobs, Noelle Mennella, Editing by Tim Hepher)

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