Sanofi Q4 FY2025 earnings call

• Sanofi continued as an R&D-driven, AI-powered biopharma company, with strategic progress supported by the Opella transaction and completion of a EUR 5 billion share buyback program.
• Delivered 9.9% sales growth in 2025, with new launches reaching EUR 5.7 billion. Launched Qfitlia, Wayrilz, and Nuvaxovid, and achieved positive Phase III results for amlitelimab in AD and SARCLISA subcutaneous formulation.
• Innovation engine progressed with 3 gene therapies in Phase I, entry into ophthalmology. Completed strategic acquisitions of Vicebio and Dynavax, and developed PAS 2090, the first industry-wide global standard for measuring environmental impact of medicines and vaccines.
• Q4 2025 sales were EUR 11.3 billion, a 13.3% growth, supported by key drivers like Dupixent and newly launched products.

In 2025, Sanofi's segments showed strong performance. Dupixent was a key driver, with Q4 sales of EUR 4.2 billion and annual sales of EUR 15.7 billion. Continued growth across anchor indications and expansion into new areas like COPD, CSU, and BP led to over 30% increase in patients. Newly launched medicines and vaccines grew 34% in 2025. Beyfortus had full year sales of EUR 1.8 billion, demonstrating the need for RSV protection. ALTUVIIIO reached blockbuster status with EUR 1.2 billion in full year sales. Vaccines maintained leadership in influenza and RSV, with full year sales of EUR 7.9 billion. The company also completed strategic acquisitions like Vicebio and Dynavax to strengthen its vaccines portfolio.

• For 2026, Sanofi expects high single-digit sales growth and profitable growth, with business EPS growing slightly faster than sales.
• Aims to sustainably reach free cash flow of at least 20% of net sales in the medium term.
• Plans to execute a EUR 1 billion share buyback program in 2026.
• Dividend increased to EUR 4.12, up 5% from the previous year.
• Sales dynamics include portfolio optimization via divestments, with vaccine sales expected to slightly decline in 2026, but gross margin expansion to continue.

• Forward-looking statements in the call are subject to substantial risks and uncertainties that may cause actual results to differ materially.
• Market competition risks for products like Dupixent and vaccines.
• Regulatory risks related to approvals and compliance with various regulations.

Q: Zain Ebrahim from JPMorgan asked about Dupixent rollouts in CSU and COPD and Beyfortus growth in 2026.

A: Brian Foard discussed Dupixent's growth in CSU and COPD, noting strong uptake and low bio penetration rates. Thomas Triomphe talked about Beyfortus, stating 2025 performance was better than expected, with expansion into more countries and a JAMA publication showing its superiority.

Q: Ben Jackson from Jefferies inquired about amlitelimab's peak sales estimates and feedback from KOLs.

A: Brian Foard expressed confidence in amlitelimab's potential in the AD market. Houman Ashrafian emphasized the novel mechanism, dosing optionality, and positive feedback from prescribers on the novel mechanism.

Q: David Risinger from Leerink asked about amlitelimab study results disclosure and offsets to R&D reimbursement loss.

A: Houman Ashrafian said COAST 1 data on amlitelimab in AD would be disclosed by the end of March. François-Xavier Roger explained that Amvuttra royalties would offset the decrease in R&D reimbursement from Regeneron, with positive impact on BOI.