PARIS (MarketWatch) -- Sanofi-Aventis /quotes/comstock/13*!sny/quotes/nls/sny (SNY 29.47, -0.04, -0.14%) Thursday reported a 61% rise in second-quarter net profit as favorable currency movements helped the French drugs company beat sales expectations despite generic competition to its Plavix and Eloxatin drugs.

Sanofi Chief Executive Chris Viehbacher said in a statement: "I'm pleased with the group's quarterly performance in an environment impacted by the U.S. healthcare reform, price cuts in Europe and continued competition from generics."

Net profit for the second-quarter to June 30 totaled EUR1.71 billion, up 61% compared with EUR1.06 billion a year earlier.

Sales rose 4.6% to EUR7.78 billion, lifted by favorable exchange rates and beating estimates for EUR7.51 billion predicted by a Dow Jones Newswires poll of 11 analysts. The company's diabetes drug Lantus led sales growth, up 11% at constant foreign exchange rates to EUR926 million. Excluding changes in structure and at constant exchange rates, group sales over the quarter fell 2.5%, the company said.

Sanofi shares have declined 15% in the past six months, underperforming the Paris CAC-40 index, down around 2% over the same period. Adding to concerns about revenue lost from generics, notably a generic version of Lovenox, the company's M&A strategy is in focus, notably the possibility Sanofi could seek an expensive acquisition. Sanofi shares closed at EUR45.43.