Sanofi (SAN) Goldman Sachs 45th Annual Global Healthcare Conference summary

Strategic priorities and business outlook

• Focus on immunology, rare disease, neurology, and vaccines, leveraging expertise and a robust pipeline of 12 potential blockbusters to prepare for major loss of exclusivity (LOE) events post-2031.

• Short-term priorities include delivering on 2024 and 2025 expectations and executing the separation of the consumer healthcare (CHC) business by Q4 2024 or Q1 2025 to create shareholder value.

• Emphasis on disciplined capital allocation, cost discipline, and leveraging past experience in similar business separations to maximize value.

• Strong balance sheet supports growth and provides flexibility for tactical M&A, with a focus on early- or late-stage assets rather than large-scale deals.

• Capital allocation prioritizes business investment, consistent dividend growth, and potential share buybacks, especially following the CHC separation.

Product pipeline and commercial performance

• Beyfortus manufacturing capacity expanded from one to three lines, with FDA approval for new lines expected in summer 2024; blockbuster status anticipated in 2024 with potential sales exceeding €1 billion.

• Strong ex-US commercial opportunities for Beyfortus, with notable early success in France, Spain, China, and emerging markets.

• Tolebrutinib readouts expected in August/September 2024; preparations for launch are underway, with flexibility to reallocate resources depending on trial outcomes.

• ALTUVIIIO launch exceeding expectations, gaining market share in a competitive hemophilia market.

• DUPIXENT guidance for 2024 sales (~€13 billion) and medium-term low double-digit growth reaffirmed despite a three-month FDA review delay for COPD indication.

Financial performance, R&D, and cost management

• R&D spend to increase by €700 million in 2024, reflecting positive pipeline momentum; expected to remain flat in 2025 as some projects conclude and new ones begin.

• Focus on improving R&D productivity, particularly in discovery, while leveraging strong development and commercialization capabilities.

• Committed to delivering €2 billion in structural cost savings over two years, with an emphasis on sustainable, quality savings beyond 2025.

• No significant impact expected from the Inflation Reduction Act due to product mix and responsible pricing strategy.

• No anticipated major liability from Zantac litigation; ongoing legal proceedings expected to last at least another 18 months.