Sanofi-Aventis breast cancer drug Iniparib has failed late stage trials leading brokers to reduce their earnings forecast for the pharmaceutical company.
FRANCE-SANOFI SNAP - French drug maker Sanofi-Aventis took a hit to its share price after its lead drug undergoing research failed late-stage clinical trials.
Iniparib, an experimental drug designed to treat a particular type of breast cancer, failed in trials to extend life or to slow the progression of the disease.
Shares in Sanofi fell around three percent on the back of the news.
The drug had been expected to begin bringing in revenues of around 800 million dollars to the firm from 2015.
This has led brokers including Deutsche Bank to reduce their forecasts for Sanofi's future earnings.
Sanofi-Aventis said it will conduct in-depth analysis of the data on Iniparib but development of the drug will continue.
It is unclear whether this latest setback will affect Sanofi's attempts to buy U.S. biotech group Genzyme for 18.5 billion dollars.
Ingrid Smith, Reuters