One of the most profitable industries in America - second only to petroleum - is big Pharma. According to Forbes, the industry rakes in more than $600 billion in drug sales each year.

Sanofi-Aventis (NYSE:SNY) is a pharmaceutical behemoth based out of Paris and is currently ranked third in market sales among drug manufacturers. Sanofi manufactures Plavix, the second most prescribed medication in the country, along with Lovenox, Avapro and Lantus insulin, all very successful drugs. Share prices have dropped by nearly 50% to $27 since this time last year, but are poised to rebound in the long term and should be on every bargain hunter’s short list.

A series of big wins in court, a stable of new drugs, and new corporate partnerships ensure Sanofi-Aventis’s continued success and long term growth.

Sanofi has been embroiled in tough lawsuits all over the world concerning the alleged patent-infringement of their drug Plavix by Apotex, who flooded the market with over $1 billion of its generic version in 2006. The German Supreme Court handed down a decision against Sanofi-Aventis this summer, but they won big in U.S. and Canadian counterparts this year and last. The decisions in North America ensure that Plavix will retain its patent exclusivity for at least another two years. Sales of Plavix jumped about 20% in 2007 and are expected to rise even more this year following favorable studies on the effectiveness and versatility of the antiplatelet agent.

In addition to the big wins against Apotex, yesterday Sanofi settled out of court with Teva Pharmaceuticals and Barr Laboratories for approximately $30 million plus royalties on future sales of another popular antihistamine, Fexofenadine, manufactured by Teva and Barr. Sanofi alleges that this generic infringes on their patent for the drug Allegra.

Another drug, Xyzal, is a relative new kid on the block but should prove to be a cash cow for Sanofi. Xyzal was approved to be marketed in the U.S. last year and is one of the first third-generation antihistamines. As an isomer of the very effective Zyrtec, Xyzal is supposed to work as well if not better than Zyrtec, without side-effects (like drowsiness) that most other antihistamines come with.

All of this recent news bodes well for Sanofi’s future, but keep a close eye on Wyeth v. Levine, a case now being heard by the Supreme Court. The defendant, Diana Levine, sued Wyeth pharmaceuticals for failing to print a warning on the packaging of their drug, Phenergan, which would have alerted her doctor to the dangers (i.e. gangrene) of giving the anti-nausea medication by IV push.

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