Sanofi (SAN) Morgan Stanley 24th Annual Global Healthcare Conference summary

Strategic priorities and business outlook

• Focus remains on sustaining strong commercial performance through the decade, especially in specialty care, and preparing for growth beyond Dupixent's LOE in the early 2030s.

• Ongoing strategic review may expand core focus areas beyond immunology, rare diseases, and vaccines, with a decision expected in the coming months.

• Business development and M&A strategy now balances early-stage assets with increased emphasis on late-stage and commercial deals, aiming to address revenue needs post-2031.

• Financial discipline guides deal-making, with flexibility for both transformative and multiple smaller deals, leveraging a strong balance sheet and cash flow.

• China is viewed both as a major commercial market and a source of innovation, with local and global partnership opportunities under consideration.

R&D, pipeline, and alliance management

• New R&D leadership is expected to drive productivity and closer collaboration with commercial teams, with a rigorous phase II/III decision process.

• The alliance with Regeneron remains operationally strong despite ongoing litigation, with active discussions on expanding the partnership and optimizing economics.

• Lifecycle management for Dupixent includes new dosing regimens and co-formulations, aimed at patient convenience and included in the EUR 25 billion 2030 sales target.

• Pipeline includes 60 programs, with recent focus on assets like AYVAKIT, ALTUVIIIO, and sarclisa, each targeting significant unmet needs and growth potential.

Market dynamics and growth drivers

• Dupixent growth is driven by low biopenetration across indications and geographies, with significant opportunity in pediatric and emerging markets.

• Competition in nascent markets like COPD is seen as beneficial for education and market expansion, with Dupixent's efficacy and safety profile highlighted.

• Operational efficiencies, including 340B program management, contributed to recent growth, though some benefits are non-recurring.

• Commercial and R&D teams co-own product profiles, ensuring that new launches are both scientifically and commercially viable.