Q3 2024 Sanofi SA Earnings Call
We'd like to remind you.
Yeah.
Okay.
Okay.
Certainties.
Actual results to differ materially.
We encourage you to read because they made a slide presentation.
We refer you to our form 20-F on file with the U S. SEC.
No offense registration documents for a description of these risk factors.
As usual well be making comments on our performance using constant exchange rates Northern Nevada.
This is <unk>.
<unk> 9 million barrels and for Q3 2000.
Unless stated otherwise it's interesting.
Speaker Change: First we have a presentation that we'll take your questions as last time, we kept the presentation on the short side to allow for more questions and keeping the call to about one of them.
Speaker Change: Q&A, we have Brian Olivia.
Speaker Change: Thomas and Judy took over the global business and why aren't you accountable.
Speaker Change: For the Q&A, you have two options and sue.
Speaker Change: Raise your hand or submit your question using the definition.
Speaker Change: With this I'll now hand, you over to Paul.
Paul: Thank you Thomas Massie them.
Thank you and Hello, everyone. We reaffirm our strong sales performance this year the total of <unk>.
Paul: <unk>.
In Europe.
Paul: Increased CR estimated 11%.
Paul: Excluding the impact of facing.
Paul: This robust double digit illustrates the underlying strength.
Paul: Yes.
Paul: We can continue to be driven by global volume growth across all indications and geographies now.
Paul: Now, reaching close to $3 5 billion Europe in the quarter.
Paul: Oh thanks.
Paul: Between 6%.
Paul: <unk> patented from an element of phasing in flu and pay for the trial.
Paul: Okay.
Robert: This is Robert.
Paul: Okay.
Paul: Performing well with a 67 countries in South is a result of strong performance across all eight.
Paul: Okay.
Paul: Let me discuss our guests.
Paul: Hi.
Apparel at 8% growth was predominately driven by the strategic acquisition of Qunar in the U S.
Paul: Also our presence in the consumer health care market.
Paul: That is why we have confidence that we have once again raised our business EPS guidance. So 2020 for Monday. This reflects our continued momentum in our commitment to delivering value to our stakeholders on slide six depicts until another quarter of strong growth.
Paul: Three milestone of improving the lives of the multimillion patients currently treatment around the world across approved indications, which groups and geographies.
Speaker Change: Fixed income <unk>.
Speaker Change: <unk> new to brand marketing.
Speaker Change: Syndications in the U S.
Speaker Change: Outside the U S to pixel is pro to blockbuster status in a single quarter.
Speaker Change: Remarkable performance.
Speaker Change: Our sales ambition of around 13 billion euros for the full year.
Speaker Change: Pete.
Speaker Change: The recent consecutive approvals of the lead indication in the U S.
Speaker Change: On the heels.
Speaks volumes of mobility to meet decisively execute to meet the need for more treatment options.
Speaker Change: Expansion of dealing some COPD give hundreds of thousands of additional patients who are living with this devastating disease.
Speaker Change: For the potentially improved breathing unlike with exacerbations.
Speaker Change: And it will positive phase III readouts <unk> in customer spontaneous or the carrier will also if approved create additional near term growth opportunities.
Speaker Change: Turning to slide seven we will continue to execute on the three commercial levels propelled the pixels volume demand and its growth longer term first the steady increase in the penetration of advanced therapies within the biologic eligible patient population.
Speaker Change: And new market entrants or other biologics are expected to help drive market improved awareness and adoption second the geographic expansion with around 30 potential country launches.
Speaker Change: Existing indications by 2026.
Speaker Change: Third the expansion into new indications with high unmet need for large biologic eligible patient populations like COPD and CSC spin.
Speaker Change: Specifically in the U S market, we continue to strengthen patient access to support new indication expansion, including COPD another new indications.
Speaker Change: Fund exit across both commercial and government channels. We remain excited by the opportunities ahead of us and in the strong growth outlook for <unk> for which we continue to target a low double digit sales increases of Tiger between 2020, and 2013 at constant exchange rates.
On slide eight our store growth in the quarter was accelerated by the outstanding performance of our newly launched medicines.
Speaker Change: 3 billion euros in the first nine months of launches have become significant contributors to Sanofi has accelerated topline growth profile.
Speaker Change: Leads the way with sales of 645 million euros in Q3, showing exceptional market uptake in the second season and underscoring the critical debased monitoring protection.
Speaker Change: Sales of 172 million euros or <unk> first <unk> further establishes physician as the new high efficacy standard of care in hemophilia treatment demonstrated by patient switches from other factor and non factor medicines.
Speaker Change: The innovative medicines like <unk> <unk>. So it creates a continued to perform well and are contributing to total of $1 4 billion Euro sales for this quarter alone.
Speaker Change: These results show the power of our launch engine.
Speaker Change: With the right focus on chart <unk>.
We need to bring transformative treatments patients around the world.
Speaker Change: Moving to slide nine our lead.
Speaker Change: Respiratory vaccine by photo improves and a high dose of established new standards.
Speaker Change: Beginning with pay orders on the left side, we continued to build outstanding body of evidence to further strengthen our position as market leader in.
Speaker Change: Protection.
Speaker Change: Recently demonstrated the paperwork.
Speaker Change: Protection against RSV penetration over a six month duration without waning.
Speaker Change: Furthermore, in the U S rail will leverage <unk>.
Speaker Change: 87% efficacy in reduction of hospitalization rates.
Speaker Change: This reinforces the real world effectiveness by photo is considerably show with more than an 80% hospitalization reduction and up to 75000 firms.
Speaker Change: Fortunately, we've been able to secure supply to extend protection against RSV millions of entities in about 20 countries, where <unk> is currently launched to summarize we're on our way to making very towards the next blockbuster <unk> unique ability to provide all interim protection.
Speaker Change: Transitioning to influenza, we are glad to see the regulators have increased their focus on the quality of studies supporting the efficacy and vaccines by requiring large randomized controlled trials against standard dose.
Speaker Change: As a reminder, this is what we've done for Fluzone high dose. The only vaccine that has demonstrated statistically superior superiority to standard dose with a 24% superior efficacy in a randomized controlled trial with 32000 participants.
Speaker Change: In contrast, the adjuvant is an mrna flu vaccines or other companies still must pass that high bar with the ongoing studies.
Speaker Change: On my last Slide let me conclude with how we advance our ESG commitments in and beyond the workplace as well.
Speaker Change: Responsible employer across the world, we are committed to ensuring a living wage for all our employees. This is why we have adopted the recognized standard of the fair wage network with guarantees wages above local benchmarks.
Speaker Change: And going beyond our workforce our commitment extends to our key supply chain partners are taking direct responsibility for our employees and partners, we are improving employee wellbeing and strengthening local economies.
Speaker Change: As always when it comes to our commitment to society and our industry leadership, we have the others will follow and help set standards that and hand over to Francois <unk> our CFO. Thank.
Francois: Thank you Paul and good morning, and good afternoon to all.
Francois: Before I start let me clarify that financial sponsor includes apparel operations now let me discuss our strong sales momentum.
Francois: Topline growth was strong at 15, 7% in Q3 outcomes like Gen Horizons with sales, reaching $17 4 billion euros. This performance was partially supported by the early shipments the flu season, and therefore strong momentum excluding disease phasing benefit we still achieved an underlying double digit growth. This team.
Francois: They tend to be around 11% similar to what we achieved.
Francois: Our solid growth.
Francois: Three where Bruce was broadbased seasonal.
Francois: Seasonal geographies.
Francois: The strategic decisions, we have made across our business units are delivering attractive reasons and gives us confidence to continue delivering strong performance in the coming quarters.
Francois: Now moving to the group P&L gross margin improved by a full percentage point in the quarter driven by positive mix effects, partly offset by currency impacts and the <unk> loss of exclusivity.
Francois: Higher R&D expenses are aligned with our commitment for 2024, reflecting our continued investment.
Francois: Sure.
Francois: SG&A grew substantially less in towns underscoring of cost and operational efficiency.
Business operating income saw a significant increase of 19, 9% in the quarter, primarily driven by higher gross profit and operating leverage our business EPS increased by 17, 6% into suite.
Francois: Previewing our business outlook for Q4, we expect continued solid year on year growth, although at a lower level than in Q3.
Francois: Do remember that there is one less invoicing in the U S in Q4 versus Q3.
Francois: Therefore, Q4 sales are projected to be in line with the Q3 level supported by the approved additional industry forecast.
Francois: We expect before sales to reach around one 5 billion euros in 2020 for a remarkable performance in its first full year marketing.
Francois: For Q4, please remember that we had around 400 million euros of forthcoming revenues in Q4, 2023 as well as the associated margin.
Francois: We confirm our full year guidance freeze R&D.
Francois: Around 700 million euros each year.
Francois: And we don't know moderately increase our investments in sales and marketing to support sales growth with a specific focus on digital investments.
Francois: For the full year 2024, we expect sales to decline by a low single digit percentage.
Francois: Two soft vaccination rates, while we continue to gain market share.
Francois: The total investment franchise.
Francois: Now expected to grow by a high single digit percentages.
Francois: Our insulin franchise more specifically lumpiness.
Francois: Young Sohn sands are stabilizing.
We take divest and to reduce <unk> by about <unk>.
Francois: Yeah.
Francois: In 2020, all anticipated.
Francois: Divestments to be around 400 million euros in Biopharma.
Francois: Gross margin is expected to decline slightly.
Francois: Andrew.
Francois: One of last year's catastrophe revenue.
Francois: A new bedroom set.
As disclosed earlier this week, we are green.
Francois: We spent 24 business units.
Francois: Now to grow by at least single digit percentage at constant exchange rates from previously around flat.
Francois: This reflects the strong business performance over the last two quarters and this reflects our confidence in <unk>.
Francois: Turning now to open up this transaction marks an important strategic step for Sanofi to become a pure play on science focused biopharma.
Francois: On Monday, we announced that we entered exclusive negotiations with <unk>, we set a controlling stake of our pillar Sanofi will keep a significant taking the company.
Francois: Support in applying their independence journey and to retain part of their future value creation.
Francois: We have entered deselected, the private option, namely partnering with World Class E film as it creates the highest value for offshore.
Francois: The valuation of <unk> 16 billion euros easy is very attractive to 14 times 2020 for estimated EBITDA is equivalent to the trading multiples of industry peers.
Francois: We expect the transaction to close in the second quarter 2025 at the earliest.
Francois: The expected proceeds from these sales will be redeployed in accordance with our capital allocation policy, ensuring we continue to invest in growth assets and deliver value to our shareholders.
Francois: Regarding share repurchases, we are fully aware, our shareholders' expectations and we will provide more specific details as we get closer to the receipt of the cash proceeds.
On the other hand, we always look at external growth opportunities to complement our attractive pipeline. We are more thinking of bolt on acquisitions and we are not working on any large acquisitions as evidenced by our willingness to make an offer.
Francois: Strong strong credit rating basically dominate on a one off and will dominate we will also consider how to inform invest itself and then that leads to the future about the businesses' performance of oiler as this will be a significant investment on our balance sheet.
Francois: Concludes my presentation I know under professor.
Speaker Change: Professor of positive news on the pipeline.
Speaker Change: Thanks Francois.
Speaker Change: Which is several months this quarter showing a continuous strong pace of deliberate.
Speaker Change: <unk> is now approved for COPD, and 130 countries, including the U S and China, where COPD is a huge unmet medical need.
Speaker Change: Spread spoken local population.
Speaker Change: Another great milestone you had premium restocking here in the U S.
Speaker Change: Patients with newly diagnosed multiple myeloma and eligible for transplantation.
Speaker Change: First anti CD 38.
Speaker Change: In this setting.
Speaker Change: Finally.
Speaker Change: She had several positive phase III readout.
Speaker Change: Bleeding celebrate one of our beauty candidates, which is notable.
Speaker Change: The frequency and the Max.
Speaker Change: Business development.
Speaker Change: Including strategic investments in external innovation is a well integrated part of vicinity efforts to continually access promising.
Speaker Change: Scientific developments and to replenish our pipeline.
Speaker Change: We invested in <unk>.
Speaker Change: Interest in the technology within immunology, and neurology, which are invested in vantage purchased in autoimmune and inflammatory disorders with an MLP three and implementation teams.
Another biotech company that piqued our interest in Keystone Immunology was an actress by it it is potentially a best in class eight <unk> PD, one agonist <unk> and <unk>.
Speaker Change: Our potential best in class eight to be angiotensin II type two receptor agonist and Ikea.
Speaker Change: Lastly, we completed a licensing agreement.
Speaker Change: Okay.
Speaker Change: And ran an AD for Alphametrics, a best in class radio ligand based on Alpha emitting assets.
Speaker Change: Yes.
Speaker Change: We will keep you updated as we continue to access external optionality for our pipeline and complement the work we're doing internally.
Speaker Change: On the next slide.
Speaker Change: Last month at the <unk> conference and presented corporate niche.
Speaker Change: <unk> data in RMS and <unk>.
We didn't meet the primary endpoint in the relapsing multiple questions. However.
Speaker Change: However, a pooled analysis of six months data Cdw's key secondary endpoint showed a considerable delay in time to onset, which supported the impressive results in.
Speaker Change: Non relapse in secondary progressive Ms.
Speaker Change: And as CMS celebrate and delay the onset.
Speaker Change: Let a tighter answer.
Speaker Change: Six months CDP by 31%.
Speaker Change: And our secondary endpoint showing the number of participants who experienced confirmed disability improvement increased by nearly $2 significant amount on the lowering of the annualized.
Speaker Change: Rates, new or in large CPG lesions can efficacy.
Speaker Change: Laura and final regions are common to the beauty.
In our study.
Most cases resolved without sequelae that will account for today.
Speaker Change: Accordingly, we focus.
Speaker Change: An intense level of training that Paris.
Speaker Change: Im confident in <unk> patients, which could offer a first off no.
Speaker Change: Active statement, helping improved visibility as yet to penetrate.
Thanks <unk>.
Speaker Change: Up 40 ligand inevitable tool, we recently presented new STB atopic dermatitis data from a 68 week stream a study at the AAD.
Speaker Change: Hum.
Speaker Change: Is that in three parts. The first one a crowd ramp is.
Speaker Change: Is it changing.
Speaker Change: With <unk> 16 weeks, followed by a second pump.
When mutations or durability of clinical response after withdrawal at 24 weeks and the safety for <unk> 16.
Speaker Change: Throughout the 68 weeks similar to the Mab demonstrated a clean safety profile with most sure Fortinet ta, which very mild or moderate in therapy and non led to discontinuation of the treatment emphasising the differentiated safety profile complementing its confirm efficacy.
Speaker Change: Sure ability with demonstrated with the same percentage of <unk>.
Speaker Change: Change after analysts' maps cessation.
Speaker Change: Potentially.
It's 12 weeks, but potential for disease modification and therapy.
Speaker Change: <unk> mission.
Speaker Change: Not seen with any current medicine as ambition.
Speaker Change: <unk> hundred 30, Congo shallow program ongoing.
Speaker Change: What's the plan in 2000.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Our work in immunology to the community that we present, the breath of our immunology portfolio.
Speaker Change: While we are persistent inhibition to serve patients' needs, we increasingly focused across all stages and great to see.
Speaker Change: Ah patients, which are which are being addressed.
In development.
Speaker Change: Each of these disease distinct characteristics, leading to the informed use of our medicines specific progression stage.
Speaker Change: Increasing options can highly beneficial to patients in areas, where there is still significant unmet need.
To conclude with my signature slides 18.
Speaker Change: 18 months.
Speaker Change: So which continues to evolve.
Speaker Change: Second progress.
Speaker Change: Faced R&D productivity keeps on delivery.
We plan six phase III, Readouts 11 submission and 10 regulatory decision in multiple countries.
Speaker Change: For the kitchen.
Speaker Change: Right.
Speaker Change: Yes humbling.
Speaker Change: And regrettably non agency.
Speaker Change: But I am optimistic about this unique clients in our core focus our pubic areas must emphasis of patients before handing back to Paul I would like to extend a warm welcome to our new head of research.
Speaker Change: For quickly and easily anticipating a future collaboration and confident that his expertise.
Speaker Change: Through our continued efforts.
Speaker Change: R&D productivity quality of our pipeline at a time with this I hand back to poll for Q&A.
Paul: Well. Thank you human name when I had the call to questions as a reminder.
Speaker Change: And limit your questions to one or two each we say that every time I'm not sure anybody is that.
Speaker Change: So anyway, you'll be notified when your line is open to question.
Speaker Change: Sure Mike.
Or option to submit your question by clicking the Q&A icon at the bottom of the screen. Your question will be led by our panelists.
Speaker Change: Now we take the first question. Please go ahead first question from Richard Vasa from Jpmorgan Richard.
Richard Vasa: Hopefully you can hear me.
Richard Vasa: In terms of Austin and JP Morgan two questions. Please.
Richard Vasa: First question on basketball.
Richard Vasa: How are you thinking about the commercial potential beyond this season following the H P King.
Richard Vasa: Cussing data.
Speaker Change: That's more a map.
Speaker Change: I can never say eight.
Yes.
Speaker Change: Yes.
Speaker Change: And then second question is just on the L. A deal.
Speaker Change: How should we think about the high single digit billion pricing, how much of that would be realized by that parcel staring at Pos certain pulse down too.
Speaker Change: Thanks.
Speaker Change: Thank you Richard processes, very easy to say tomo.
Speaker Change: No.
Speaker Change: <unk>.
Speaker Change: Thanks for the question Richard.
Indeed.
Speaker Change: A few first point to start with.
Speaker Change: There's still a little ways.
So we really welcome <unk>.
Speaker Change: It will increase the size of the presentation.
Speaker Change: But is there any about that is that monitoring antibody absolutely.
Speaker Change: To be able to really protect audience and if we are to be more than one so I actually think that song and make sure that more and more babysitting. Thank you.
Yeah.
Speaker Change: Now in terms of the CIP.
Speaker Change: Additionally.
Speaker Change: They were showing still important differences between the two product.
Speaker Change: It's still early data.
Speaker Change: Our capital that we've seen.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: We have demonstrated in both phase III.
Speaker Change: And while it is evident that the beat in actual efficacy.
Speaker Change: While the duration of action, so looking forward and I'm sure. We'll have many opportunities will give us further guaranteed products.
Francois appellate deal in Brazil.
Speaker Change: So on the <unk>.
Speaker Change: Indeed, I confirm that we expect to receive the earliest in Q4 dollars 25, a high single digit number.
A few rules once again latonia do too.
Speaker Change: Just one small comment on the on the amount equivalent to the disposal of the more than 50%, taking the company, we will get the benefit of.
Speaker Change: That pushed down because obviously as a company with xiaomi highly leverage minus we need to attack season transaction as.
As well.
So we don't expect to get them to.
Speaker Change: Tony to talk about that.
Speaker Change: Actually we use will be fully in line with Ah.
Speaker Change: Location on seats, which is essentially around investing.
Speaker Change: This maturity with Purdue.
Speaker Change: The <unk> side.
Speaker Change: Keep on looking at opportunities in the markets. We are talking essentially on bolt on acquisitions, we are not booking of large acquisitions as evidenced by the fact that we give some assurance although intention to return to the double leverage.
Speaker Change: We will maintain its dividend policy to increase our dividend in absolute value in euros, we have always done already done levels at <unk> and we will.
Speaker Change: On TDI and diluted share buybacks, we held out unclear the shareholders all shoulder expectation regardless.
Speaker Change: Sure sure.
Speaker Change: Repo.
Speaker Change: Which is something that we have discussed in the past. So we have very very key.
Speaker Change: Appetite of our shareholders.
Speaker Change: That part of our capital allocation.
Speaker Change: Great question. Please yes next question is from ammunition from Barclays.
Speaker Change: Emily.
Speaker Change: Hi.
Emily: From Barclays. Thanks for taking my question I'll ask two.
Speaker Change: First one on <unk>.
Speaker Change: I was just wondering I know, it's very early in the launch and TBD.
Speaker Change: If you could give us any early metrics about how youre seeing that launched this new indication and just how youre thinking about.
Speaker Change: Now that you are out there.
Speaker Change: And then.
Speaker Change: Very helpful answer, yes, okay throw pillows.
Wanted to see if I can.
Speaker Change: Perhaps.
Speaker Change: Mark.
Speaker Change: One of the questions you've been getting.
Speaker Change: Yes.
Speaker Change: Just how much.
From the.
Speaker Change: The sale of a power could be offset with share repurchase.
Just wondering if perhaps you could provide any more.
Thank you.
Speaker Change: Thank you Emily.
Speaker Change: Thoughts on Super duty launch yes.
Speaker Change: Emily Thank you so much for the question obviously, we.
Speaker Change: Excellent to precipitate.
Speaker Change: Has the market places we've seen it now it's very early days, we're just under a month of being out there in the United States, but as we indicated before the disease state leading cause of death worldwide.
Speaker Change: Meaningful innovation in the past 10 years. So you can imagine the marketplace is very excited it's too early to comment on trends what I can tell you is that the feedback has been extremely positive in the marketplace and this really sets us up very nicely.
Speaker Change: Or this is just the beginning of our COPD journey. So again other pipeline asset as well as coming directly behind us and I think the early feedback gives us even more confidence in that and.
And the guidance. We previously provided the two of those will likely be somewhere in the range of 5 billion.
Speaker Change: Okay.
Speaker Change: Immediately on the use of force in the dilution, let me clarify something because I saw some of that licensing the deductions.
Speaker Change: The duration of pillar was 11% linked to that we have.
Speaker Change: Yeah.
Before it would be close to 9% given that our biopharma business.
Speaker Change: That's helpful.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Right.
Speaker Change: Okay.
Speaker Change: Sure.
Okay.
Speaker Change: So I'm not too worried of the dilution in 2024, because our business EPS.
Speaker Change: Five an increase of 2020 in absolute value regardless of.
Speaker Change: Even before any dilution activities that we could go for so our business EPS will increase a much more mature.
Speaker Change: At constant exchange rates will increase in 2025 of our 2024 and it will increase over 2004, even with or without opening up so the dilution will be anywhere even before anti dilution activities will be absorbed.
Speaker Change: Kim next question please.
Speaker Change: Hum background.
Speaker Change: Melissa Graham.
Melissa Graham: Great. Thanks for taking my question, so essentially you'll pay for this just wonder don't see 1.5 billion Euro guidance, you're pointing chief via now just which contains our siem did not.
Melissa Graham: And we're asking what sort of penetration do you targeting key markets U S France, Germany.
Speaker Change: In many more markets to come still that they're not mentioned in the in the press release today.
Speaker Change: And then secondly on buybacks and just could you remind us of your current buyback authority that you have from the board and how much of that is left to execute it.
Dependence of the Palo or any cash receipts. There is there anything that stops us from executing a buyback today or before quiche next year for example, thank you.
Speaker Change: Okay. Thank you.
Yes put us countries Graham so so as we indicated we launched in 2000 and defer interest to 20 countries, which.
Which includes of course, North America Western Europe.
Speaker Change: Of course, we do know that he will relaunch in Spain, France and expanded too.
The us market.
Speaker Change: <unk> antibody before I think it is put together, Germany, Italy.
Speaker Change: Jim and a few others.
Speaker Change: And we.
Speaker Change: We had a couple of Mr country that was.
Speaker Change: As disclosed in the previous earnings call.
Speaker Change: Most of the.
Speaker Change: Yes.
Speaker Change: So refocusing in North America, and Europe and markets in which we launched next year.
Speaker Change: Yeah.
Speaker Change: Thank you Tom.
Buybacks, just as you would imagine, particularly.
Speaker Change: Entered into this period.
Speaker Change: We have an ongoing conversation with the board.
Speaker Change: Buybacks.
Speaker Change: As you would expect and when we're ready to communicate.
Speaker Change: Capital allocation decisions, we will of course share that with you immediately.
Okay. Next question next question from Seamus Fernandez from Guggenheim Seamus.
Speaker Change: Okay.
Speaker Change: Thanks for the question so just.
Seamus Fernandez: A couple first on your strategy with <unk>, just wanted to get a better sense of the importance of asthma.
Seamus Fernandez: In that <unk>.
Seamus Fernandez: Data set and then also how you're deciding to move forward with 40 TNF given the data that are coming roughly around similar timeframe for that Bispecific antibody.
Seamus Fernandez: And then <unk>.
Seamus Fernandez: Incremental to.
Seamus Fernandez: Some of the questions that have been asked.
Seamus Fernandez: Just wanted to get a better sense of your commitment to the strong growth recovery that you've talked about in the past I think now the consensus expectation is for.
Seamus Fernandez: Anywhere from 15% to 18% growth year over year.
Seamus Fernandez: And it seems like there is a potential acceleration in the overall biopharma business that could be coming with the top remove all about how long from the base business. So just wanted to get a better sense of how we're thinking about the year over year growth expectation and opportunity. Thanks, so much.
Speaker Change: Okay Seamus.
Speaker Change: We start with human on the Telemark Vanessa.
Speaker Change: For the ligand TNF and then transfers to the top of the strong coverage nextgen and the numbers until the EBIT bridge.
Speaker Change: Jamie Thanks for the question.
More confident than ever about the importance of the ox 40, ox 40 ligand pathway and disease as you've seen.
Speaker Change: From our data in atopic dermatitis, we feel that we are.
Speaker Change: Our best in class.
Speaker Change: By virtue of targeting the ligand, which gives us biological distinction to mature ability and efficacy perspective, but also from a safety perspective.
Speaker Change: <unk>.
Speaker Change: To mitigate for example channels and other impacts.
Speaker Change: Specifically with respect to asthma.
Speaker Change: Our ox 40.
Speaker Change: <unk> eight <unk>.
Speaker Change: Many inflammatory processes.
Speaker Change: Have a great target credentialing across multiple indications and we have been deeply committed to patient vascular already with 2% and a number of other agents. We are committed to the asthma franchise and we hope that.
Speaker Change: And <unk> will in <unk> next year.
Speaker Change: Perfect debated for forward motion in that position.
Speaker Change: She will comment on your bi specifics think Cuba.
Speaker Change: Bringing that in to focus of course that internally developed molecules. We're confident now about internal research and discovery activity. We're humble in the face of disease, all complacent, but where it is.
Speaker Change: <unk> to be generating a split of the tunnel.
<unk>.
Speaker Change: Finally of course, the second one.
Speaker Change: Secondly, I guess showing you auction.
We look forward to the results of the double punch blocking TNF and ox 40.
Speaker Change: And the disease that we know is.
Speaker Change: From a credentialing perspective influenced by China.
Hopefully the results will come.
Speaker Change: In the first half of next year, and we look forward to discussing.
10-Q.
Speaker Change: Yeah.
A huge opportunity.
So.
Speaker Change: But asthma based on interval, if we can get that would be released.
Speaker Change: Great Great place, Okay. So francois.
Speaker Change: This growth first.
Speaker Change: First and foremost what is important to understand exactly what you said which is was.
Sanofi as a pure Biopharma company will have a better grasp for final margin profile.
Speaker Change: Without.
Speaker Change: No.
Speaker Change: We confirm as well the fact that we expect a strong rebound.
Speaker Change: Business EPS in 2025, the figure you mentioned is.
Speaker Change: Significantly above the consensus which is around 12% to 13% all the time, Inc.
Speaker Change: And don't forget one thing that we have accelerated in 2024 of EPS, we revised our guidance upwards towards at the end of Q2, and just now and at the end of Q3. So we have we're bringing forward to certain extent.
Speaker Change: <unk> rebound.
Speaker Change: To confirm sito's, frankly beyond 2025, but over Ohio beds.
1020, <unk> given that we have accelerated.
Speaker Change: Rebound already starting 2012.
Speaker Change: Okay. Next question next question from Jo Walton from UBS Joe.
Jo Walton: Thank you just to clarify to confirm the 20% your full year 'twenty four numbers there'll be a linear basis. So we want to pay at least on the headline basis seeing sales or a palo Alto <unk> III that will all be just the single discontinued line item that was in your business EPS.
Speaker Change: So let me go like through.
Speaker Change: Excellent and he had a clarification if you could give us any help on that.
Speaker Change: The tax rate that might be expected in FY 'twenty five just given the comments about potential high attacks in France. If you could just give us a sense of what that might do but my main question is please.
Speaker Change: Any help you can give us on negotiations for IL rate for next year in the U S. All the companies have said that the loss of rebates, particularly in immunology because of the loss of the Humira rebates as my Pbms, particularly a halt in the.
Speaker Change: <unk> for 2025 for rebates and of course, we know do picks and gets the first sort of proper competitor with a plus.
From a major player that can also give heavy rebates for next year. So I wonder if you could talk a little bit about that please.
So just to clear because we sort of talk as well, while you were talking no appellate and the full year results.
Speaker Change: So that's like a form of R&D and maybe I can give a little bit more color on this extra.
Speaker Change: As you probably saw with news Corp.
Sure.
Speaker Change: <unk> tax rate will go down from 21% with about.
Speaker Change: About 20, some useful I want to mention as well that with the new tax laws in France, We do expect inquiries of taxes in France, you may have seen that some of our fields in the CAC 40 have already disclosed significant amounts of for ex.
<unk>, we will be probably at the lower end of some of the FICO that have been mentioned by some of our peers in France, and I want to reassure you as well that we do expect that.
I believe in 2025 with what we know today.
Speaker Change: That's the underlying tax rate should remain relatively benign.
Speaker Change: Globally in spite of what turning into France, similar to what we expect in 2020 for around $20. Some given that we have ways to mitigate it.
Speaker Change: Outside of France, and we have some other countries that are reducing the FX rates and so forth on with the mix of geographies on activities, we should be able to maintain in 2025 with what we know today.
Speaker Change: The.
Speaker Change: Experts around 20% next year. Thank you.
Speaker Change: Maybe Brian you want to.
Speaker Change: The sponsor already Christian yes.
Speaker Change: So Joe I think from.
From an environment standpoint, and price reduction actions a couple of things in there as we've said before our position is not really good for innovation and general inflation reduction Act.
There are some pieces in there that we do agree with which one of which is actually quite good for patients is the no more than $1 out of pocket and ability to spread that across the months.
Speaker Change: Could potentially allow these patients have access to medicines that they haven't had before in the past we think that that's a good thing. So that's a positive side of things from an IRR standpoint, our portfolio actually lends us very well to this because we have an innovative portfolio of innovative pipeline coming and Thats. What you see is U S marketplace really values.
Speaker Change: Innovation and so we don't really see a meaningful impact on our.
Speaker Change: <unk> and.
Speaker Change: For any reason for that matter, especially in relation to the pricing provisions that are in place now it relates to overall negotiation with payers again I'll remind you specifically now on <unk>, because that's where the question is coming from Brian We found ourselves in an excellent position first four months, we have great underlying demand growth, that's where our growth is coming from and we find ourselves in a good position because we have been X.
Speaker Change: <unk>, a very clear strategy with the payers for quite some time to ensure as we expand indications that we're able to gain access to whether its new channels.
And we find ourselves in good position and this is all taken into our guidance as we provided to you for $30 million. This year, a target of around $13 billion and a double digit CAGR growth in 'twenty three 'twenty three.
Thank you Brian next question. Please next.
Speaker Change: Next question from Peter Welford from Jefferies Sir.
Peter Welford: Hi, Thanks, so much Dave a question to one first of all coming back to the <unk> 35.
Peter Welford: Bypass a little bit more help for us on a few items that would help us narrow the range of consensus firstly is there any potential stranded costs that we should think about from a pillar in 2025 that will then become free didn't perhaps into 2000 and also just you made the comment on the sales and marketing.
Peter Welford: Forward for the investments.
Peter Welford: Support launches how should we think about that perhaps going into 2020 bonds.
Speaker Change: And then the second question is all phase III trials for new vaccines and I guess the question here is first of all with the de Novo that debuted the combination flu.
Speaker Change: Would your intention be to run efficacy studies, you talked about <unk>.
Speaker Change: And somebody does that does an SDA blurb that meeting I think could be called on 12 December discuss pediatric RSV curious if you've been a statistic and Max as far as on the way Youre. The only phase III pediatric RSV vaccine currently that is in the clinic.
Speaker Change: Okay. Okay.
Speaker Change: Thank you very much.
Speaker Change: Transfer stranded costs and the need to know about.
Speaker Change: Any color there would be so much service nothing material on any restaurants, because by definition, we will absolutely needed.
Speaker Change: Meet them over time, so I won't be specific would be worried about them can absorb.
Speaker Change: Good evening.
In sales and marketing as you can see we invested.
Speaker Change: More than the Orange and unplanned, but given that we have a very strong momentum under deployed I'm comfortable with it as it makes sense and where we are.
I think that there will be probably between 20 to 25 as well, but nothing major.
Speaker Change: <unk>.
Speaker Change: Tomo Novavax and <unk>.
Speaker Change: So thanks for the question so the bead RSV meeting that was good for you.
Speaker Change: Cindy B indication is really generic ones. So we have not been particularly in EBIT will be Schmidt at the gate and we'll be there.
Speaker Change: And as you mentioned with our RSV vaccines, which is currently in phase III doing very strongly with your enrollment.
Speaker Change: Is there any way to position for that fee pending of course, the phase III outcome.
Speaker Change: Second point you were mentioning novavax.
Speaker Change: Our strategy is.
Speaker Change: Absolutely the same as the <unk>.
Speaker Change: Moving forward.
Speaker Change: Okay.
To this year, where we want to showcase that we can do.
Speaker Change: Ill flu with none other excluded 19 together.
<unk> does not compromise neither on our feet.
Speaker Change: Efficacy.
Speaker Change: And our intention is once we have results.
Speaker Change: Steve.
Speaker Change: Moving next year to what Stacey.
Steve: Assuming stable to positive.
Steve: Next question. Please next question from me.
Lisa: Thanks Lisa.
Matt: Hi, Matt.
Speaker Change: Taking my question.
Speaker Change: First one for Tony just to continue on the flu franchise. How soon do you expect the COVID-19.
Speaker Change: With an ALJ recommendation should be on the market.
Speaker Change: And then second question is the pool.
Speaker Change: Yeah, well done so you've made enormous progress transforming our pharmacy business and looking forward R&D.
Speaker Change: Ending challenge.
Speaker Change: Or when do you see as the most critical.
Critical inflection point for determining progress and the R&D transformation and how is the organization positioned to really maximize them pipeline successes, but as Kevin mentioned, the inevitable failure that come with the tariff change.
Speaker Change: Thanks Julie.
Speaker Change: <unk> taken off and as the spend by internal and external.
Speaker Change: Thank you okay.
Speaker Change: A major report apparently okay. So a fluke of it.
Speaker Change: Yes, thanks for the question Luisa.
Speaker Change: Early to say.
Speaker Change: Again, what I think is very important to <unk>.
Combination vaccines in place moving falloff and we believe we need provided and assuming those commission vaccines do not have any compromise on safety or efficacy I stand by that because as you know very well.
Speaker Change: It's our intention.
Speaker Change: Hello <unk>.
Speaker Change: So Nevada, some competitor moving forward on this interestingly.
Speaker Change: We're done.
Speaker Change: I recognize that they need to provide efficacy.
Speaker Change: On the flu component.
Speaker Change: Seeing that the engaging.
Speaker Change: On the very large phase III scale.
Speaker Change: If there is not to valuate clinical utility.
Speaker Change: And you can outcome against <unk> and I think it's going to be very important.
Speaker Change: You need to demonstrate clinical statistically meaningful.
Speaker Change: Superior efficacy in a sustainable to have a chance to be in the EAP recommendation for 65 in the body in the U S. So let's put things firstly Nana first we need to see what is the efficacy.
Speaker Change: And therefore, the thing that we need to go indeed.
Speaker Change: And to receive any combination in any case I don't see them any competitor they'll be there in 2025.
Speaker Change: We will be there no vaccine leading them.
Speaker Change: And at some point ability to have very good efficacy and dealing with reliability.
Speaker Change: Will they be there in 2026 or later on we still need to sit down at the which is peanuts.
Thank you Tony for.
For me incidents in question I mean.
We studied a lot, particularly in the early part of the strategy of play to win how long it takes to do an R&D et cetera, and it was sort of five to seven years was the average. So if you look at some of the success stories.
Speaker Change: You know a little bit now.
Speaker Change: I'd like to have been faster.
Speaker Change: It wasn't to be.
Speaker Change: So we're literally we see ourselves at the beginning of that journey more proof points more chances for success for all of them are failure, but we and we built the pipeline that'll, particularly in areas that we really know like immunology and neurology vaccines.
Speaker Change: And I think there's quite a bit to come I think the reason, we we transit guidance last year was because when your 'twenty four and 'twenty five we're going to be important news.
Speaker Change: So we're really seeing how far we've come.
No of course internally, we can be optimistic but we are.
Never follow up from people, saying.
Speaker Change: You are as good as <unk> successful failures.
Speaker Change: So we're gonna heads down we're doing hard work I think internal governance is under <unk> leadership.
Speaker Change: Much more demanding so that we try not to stub our toe in that journey, we got more chance of really following the pathway and see if it gets done.
Speaker Change: Of course, there's some really exciting assets in the pipeline, but there are still early in some of the TNF for example.
Speaker Change: If we can get these things advanced.
Speaker Change: I think it has changed.
Speaker Change: The nature of the company and I have sort of learned overtime and this is Joe.
Speaker Change: It's about getting more successes and failures.
Speaker Change: It's been it's penetrating for me personally as a leader, but also I think for the organization has pivoted towards R&D. So too early to say I guess.
Speaker Change: Do we do we think with that I think would not.
Speaker Change: But I do think we have a short term goal.
Speaker Change: <unk> set up better profiles.
Speaker Change: We have improved, albeit without it if we can turn that into readout.
Speaker Change: Then I think we'll be extremely well positioned for the company on versus our peers.
Speaker Change: Okay. Next question next question from T mobile.
Speaker Change: Morgan Stanley.
Speaker Change: Yes. Thank you just a couple of questions on the hidden Glenn.
Speaker Change: You in license the project power project.
Speaker Change: Yeah, Hi, Gerry glad to.
Speaker Change: These indications I just wonder if you could comment on the positioning us as the father of Karen.
Speaker Change: I think he's got a team here and second question is related to fill how did you guys could comment more broadly.
Are you guys thinking.
Speaker Change: Sure.
Speaker Change: No bad.
Speaker Change: With that mentality.
Speaker Change: Is it just kind of a one off because you saw something specific here.
Speaker Change: You hit the wafer fab two.
Speaker Change: E beam our presence in the oncology space targeted way.
Speaker Change: Could you comment on anything like that.
Speaker Change: The supply chain for this.
Speaker Change: Between you and your father and.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Okay. Thank you human radio ligand isn't a one off what truth to it and what about supply chain depends on how the deal now that doesn't happen.
Speaker Change: Yes, Thanks, Paul I'll start and hand.
Speaker Change: It's my great colleagues.
Speaker Change: Simple question right.
Some parts of the radio space has been validated by others.
Speaker Change: With different modalities of treatment, we are extremely excited about developing innovative treatments for patients with large unmet medical needs led to one two is a particularly interesting modality is in our perimeter.
Yes.
Speaker Change: Direct effect on <unk>, but also.
Speaker Change: In line with our Adjacencies and immuno science as a way of activating immune responses.
Speaker Change: So then I had a double punch in a.
Speaker Change: Thank you.
Speaker Change: You're going to come through in our strategy.
So we're excited by modality breakout if I, let you want to.
Speaker Change: Investing in promising promising innovative drugs is a core of our strategy and I have to say we are increasingly focused on.
Speaker Change: On delivering in either performing and in this case the way this is manifest in depth.
Speaker Change: This led to <unk> molecule that we started looking at has really very promising data in this rat form of cancer that they can fit onto our <unk> franchise.
Speaker Change: So you have this opportunity as it knits together many of the areas in which we are.
Speaker Change: We have the right to play.
Speaker Change: And offer superior clinical benefits as well as limiting attached to Jason.
Speaker Change: JC because he is getting that knowledge.
With respect to supply chain, Brendan I wonder, whether you could sure so yeah getting treatment to patients in a timely efficient manner.
Mt.
Speaker Change: In that regard, we're working with <unk>, who are true experts in this space.
Speaker Change: We're quite confident in our ability to meet the supply requirements. We have ample quantities of the base isotope torian to three two available to cover multiple multiple years and the process from which we don't extract the isotope interests, which has led to.
Speaker Change: It does not it's a very robust chemical process does not rely on nuclear reactors are practical accelerators or any complex technology like that so we're quite confident in our ability to secure the supply chain. We're building specialist offer therapy close to the points of treatment plus a major distribution hubs, Joe let us to secure the availability.
Speaker Change: Product within the timelines that are required for treatment.
In summary, we're very very confident in our <unk> and the provision of putting it.
Speaker Change: Just one other comment.
Speaker Change: One of the things we're incredibly proud of is the ability to leverage talent and technology in France, which is a unique differentiator, we have and the ability to work with a French leader in nuclear technology is something that is uniquely available to us and I think we're very proud to be working at this point.
Speaker Change: Yeah, and I think that the owner.
I'll conclude this asked particularly about supplier.
Speaker Change: I think it's sort of noticed that it's one of the more difficult things to do.
Speaker Change: Because they are all advances frankly, so hopefully we can take advantage of that with that.
Speaker Change: Nickel capability to Okay. Next question next question is from Simon Baker from Redburn.
Speaker Change: <unk>.
Simon Baker: Thank you very much for taking my questions carefully. Please firstly on by forces could you just remind us.
Speaker Change: Where we currently are you currently are with capacity and how that will evolve.
Speaker Change: In 'twenty, five and 'twenty six.
Speaker Change: And then the second question going back to what pillar.
Speaker Change: I wanted to ask about the.
BPI Francois: BPI Francois.
BPI Francois: Specifically once they have beyond that one thanks so much.
BPI Francois: Okay.
BPI Francois: That pay for capacity.
BPI Francois: Great.
BPI Francois: A lot of work that has been done by our manufactured pop up now and all the stakeholders involved.
BPI Francois: As you know very well, we've added tooling lines up and running and we're doing speed. So we looked at the markets just concentrated in default, we don't see any capacity limitation and will grow.
It's up nicely.
Just to make sure that nobody again, no supply constraints on CBD that early 2020.
Speaker Change: Okay, great. Thank you for answering to come out on the BPI saw the fact that BPI is joining us shows.
Speaker Change: Trickiness of the business <unk> come to them.
Speaker Change: Typically when you have one to two plus something.
Speaker Change: The shareholding in the company the government's attached communities.
Speaker Change: So this is a classical.
Speaker Change: What happens in that case.
So, let's take up from the 1% 2%.
Okay next question.
Speaker Change: Next question is from Steve Scala from Cowen.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Steve.
Steve Scala: Can you hear me.
Steve Scala: Thank you.
Steve Scala: If you have any efficacy data for by four tests, which supports protection through six months and what percent of RSV cases fall between five and six months. It would appear to be one advantage that Merck may indeed have.
Steve Scala: And then second is Santa soundtrack to initiate phase III trials for its 21, failing cockle vaccine. This year and is it still commercially viable given the competitors 31 valent data.
Thank you Steve ask some questions.
Tamara on durability, it's a great question first on Florida.
Speaker Change: We have that are of a six months absolutely.
Speaker Change: And we've made a reference in the <unk>.
Speaker Change: That is to lean into this transition we've just.
Speaker Change: Mainly that are now available.
Speaker Change: Available and as you will see what's very nice with the setup is that there is no leaning efficacy.
Speaker Change: After six months, we still see 83% efficacy against the utilization at the six full months and we are very confident that kept running for another.
Speaker Change: Understood.
Speaker Change: If you wish to see Google anyway, Okay, I actually believe that duration of petition is significantly in favor of default discomfort to gisela.
Speaker Change: Which I would recommend to look at a couple of points.
Speaker Change: I would say.
Speaker Change: Tim.
Speaker Change: Yeah.
Speaker Change: Now turning to the annualize of both product when you see a significant different one is above 40 data owns about 70 days and so a significant difference in both Pollock and.
Speaker Change: Remind us either.
Speaker Change: For the coming ACP discussions.
Speaker Change: <unk>, we need to show that.
Speaker Change: Okay.
Speaker Change: The phase III efficacy data that we show what is nevertheless.
Speaker Change: New cases.
Speaker Change: Such predictions and the month 12 months five months six months, which will be very different and we believe and what we said we'd be artists.
Speaker Change: We believe that most of the disease.
Speaker Change: Compete those phase III, we are in the very early phases.
Speaker Change: So I do even duration.
Speaker Change: A very important point.
Speaker Change: Thank you and our pneumococcal and PCB 21, Thank you very much because it.
Speaker Change: It's a very important.
Speaker Change: Product.
Speaker Change: Portfolio, we are fully on track.
Speaker Change: Start phase III in 2020, I confirm that and the next question was.
Speaker Change: It is a valuable product absolutely and you fully understand that the Atwood is not just to the facility.
Speaker Change: One stop and that's all.
Speaker Change: Our goal is to have a thirst and first ever seek nomo conjugate vaccine ordered with more than $20 billion.
Speaker Change: On the market and from that first wave, but we won't really be assessed my son, then we will be funded with additional filler types. So once you're in that range, which want to remain competitive.
Speaker Change: Thank you very clear.
Speaker Change: Question. Please.
Speaker Change: Next question is from.
Gary.
Speaker Change: Mhm.
Gary: Yes can you hear me okay.
Right so.
So congrats on the financial results I have two questions first.
Gary: Regarding amgen's ox 40 phase III efficacy since it was lower than expected did the week efficacy results impact your expectations for forthcoming amulet <unk> efficacy and then.
Gary: Sorry about alright, second Santa Fe, as several ini pipeline readout.
Gary: Over the last year or so.
Gary: Could you. Please provide a framework on how the company plans to disclose the slew of results that our comment including.
Gary: For phase two data readouts, which will be.
Yes.
Gary: Important proof of concept. Thank you.
Gary: Okay.
Gary: Thank you David So Cummins <unk> ox 40 ligand in the sort of the results from Anja, yes.
Speaker Change: Thanks, So much for the question we remain very excited about the ox 40 pathway in general.
Speaker Change: Very detailed.
Speaker Change: Sales in our credentials and the target before we went into the space and all the publicly available data.
Speaker Change: Two.
Speaker Change: People and even stronger.
Speaker Change: Hum.
Speaker Change: The importance of the ox 40 possibility.
Speaker Change: The differentiation.
Speaker Change: 40, receptive us Blake.
Speaker Change: Maybe manifest in the data come from tenant.
Speaker Change: What I'm confident in being able to say is targeting the light cabinets impact novelty T cell <unk>.
Training them.
Speaker Change: It may well.
Speaker Change: I can translate in quite a few more durability.
Speaker Change: But also.
Speaker Change: It's not actually.
Speaker Change: Yes.
Speaker Change: The side effect profile.
Right.
Speaker Change: Got it understood.
Speaker Change: To give you a very simple in class Alright, we think.
Speaker Change: The president of another.
Speaker Change: Our molecule.
Speaker Change: The tide raises all boats, it's great to have other class.
Speaker Change: Atopic dermatitis space, because it allows us and class a much greater education population greater by penetration.
Speaker Change: And I can tie it into my God has now been shown to be.
Speaker Change: Did I mention and extremely quickly to your second question. You are right. We are blessed to have a number of very significant amounts coming out in the next year.
Speaker Change: We will focus on.
Presenting and disclosing our results in the appropriate forum.
Speaker Change: Most of which will be.
Speaker Change: In.
Speaker Change: Scientific Congresses, we all have a deeply conscious of our.
Speaker Change: Compliance responsibilities consolidated.
Speaker Change: And is that material of course, we will hasten to convey them to the street as quickly as possible. Thank you for the question.
Speaker Change: Next question is from Richard Parkes from E&P <unk> Richard.
Richard Parkes: Alright, thanks, very much for taking my questions just coming back by Fortis and expectations into 2025, I wondered if you could just push you a little bit more on that.
Richard Parkes: Competition does materialize, just wondering whether you would be willing to.
Speaker Change: So being able to grow.
Speaker Change: Franchisee with or without competition may be true.
National launch and then related to that I think of the vaccine stay a couple of years ago.
Speaker Change: Put up slide plying RSV infant market cost of $22 4 billion by 2030, I'm sure you'll think king's evolves sensor could you just.
Speaker Change: Update us on your current thinking over the total commercial potential.
Speaker Change: Okay.
Speaker Change: Thank you for that region, so photos market how is it going to develop.
Speaker Change: No significant change on that.
As the overall market.
Speaker Change: Artificial for 2030 years.
Speaker Change: On top of the OSB at Newmont that would be the Ara the infantile it the so called RSV vaccine another road for keeps to be protected.
Speaker Change: One in the book so that will of course be a very interesting part for us.
Speaker Change: But back to the initial part of your question on the 2025 outlook and what's the outlook, we though we don't copies up let me busy.
Speaker Change: I might have missed it enough time, but with or without complete up $20 25 billion of growth, albeit bodies.
Speaker Change: Significant number of newborns that do require.
Speaker Change: Predictions.
Speaker Change: But it's not because of labor and it's totally unfair from an ethical perspective to make sure that data is if they can talk some billion.
Speaker Change: That's why we 100% on transportation or <unk>.
Speaker Change: Some potential can only be provided by <unk> with you and not met on that organization.
Speaker Change: It is very good so far.
Speaker Change: Although voices.
Speaker Change: And in particular, the Bang field will increase with or without a competitor and default.
Speaker Change: Maybe I'll just review in 2025.
Thank you and thanks Richard.
<unk> been looking at that deck. It was a good deck with other nuggets in there about how things will develop.
Speaker Change: But we've taken another look at another Okay next question. Please.
Speaker Change: Next question is from Mahesh Kumar from HSBC.
Hi, Thanks for taking my question.
Speaker Change: Another one on before.
Speaker Change: Plus trophy map.
Speaker Change: Uh huh.
Speaker Change: You know at one point, which.
Speaker Change #100: Mark I'm, making it.
Speaker Change #100: The.
Speaker Change #100: Talking is much easier.
Speaker Change #100: The door is body weight.
Speaker Change #100: Not dependent on body weight so.
Speaker Change #100: How do you help.
You know the providers.
Speaker Change #100: Stocking up of inventory, but different.
Speaker Change #100: Our body weight infants.
Speaker Change #100: How can you ensure that.
Speaker Change #100: Become a significant disadvantage for you, obviously efficacy and all the data points you made.
Speaker Change #100: Our well noted so but.
Speaker Change #100: Correct of practical ordering.
Speaker Change #100: Might be helpful to understand.
Speaker Change #100: And just.
Speaker Change #101: Just a clarification on the pillow.
Speaker Change #101: You just run through.
Speaker Change #101: In terms of the cash proceeds.
Speaker Change #102: Got it too that's after tax of before.
Speaker Change #102: Thank you.
Speaker Change #103: Thanks Ross.
Speaker Change #104: Thanks Fotis.
Shocking.
Speaker Change #104: The matter in those eight I'm coming back to the net user count.
Speaker Change #105: As you started to answer your question indeed.
<unk> now both targeting a significant difference as anything in the coming Asap, but you can be very interesting to highlight.
Speaker Change #105: First and foremost based artist as demonstrated LNG, particularly in dairy where than it had been studied in amount of 75000 infants.
Speaker Change #105: Very significant number.
Speaker Change #105: Shooting a very I guess.
Speaker Change #105: Secondly, when you look specifically at the efficacy for the primary endpoint against RSV <unk> and in <unk> with the usual caveat of course that when you have when you're comparing across trials you've seen that <unk> has shown a higher efficacy points around 75% that is critical to them.
Speaker Change #105: Ah, 60% I do believe it's important because when we absolutely want to make sure that we prevent let's pay TV. One of them is the outcome. We also want to make on I'm sure.
Speaker Change #105: We want to be sure, but they can increase the chance of not missing one two or three days of work.
Speaker Change #105: Those who have to bring that new loan at multiple hotels.
Speaker Change #105: So I think that we obviously the parties but.
Speaker Change #105: As shown efficacy against both severe and let's see the outcomes and finally the safety side is a very important point. This is newborn population is the most hazard.
Speaker Change #105: And we shouldnt, placing system side.
Speaker Change #105: And very <unk>.
Speaker Change #105: If you go back to your question does that mean that the dose.
Speaker Change #105: The unfaithful B Mab is a significantly differentiated.
Speaker Change #105: Actually we don't think this is an issue at all.
Speaker Change #105: First of all.
Speaker Change #105: Because we thought a lot about this I think.
Speaker Change #105: To do that.
Speaker Change #105: It is important because the right, though is fitting the right tenant.
Speaker Change #106: Smaller baby typically as newborn time being less than five kilograms, we should receive a 15 milligram dose.
Speaker Change #106: These babies you do get those east India's Peter Shannon.
Speaker Change #106: We didnt mentality sitting.
Speaker Change #106: On the other and maybe that are weighing more than five milligrams should receive 100 million doors, which anomaly older babies, but within the efficient. So each channel has a very well places funding specific disease, because there and finally on that point I think it might be very interesting product just to see that.
Speaker Change #106: Findings in clinical studies is that 50 milligram doses of product.
Speaker Change #106: Is exactly the right shows as it delivered the best as you can see the smallest placebo for newborn babies in web good arguments will disappoint you.
Speaker Change #107: Thank you very much transfer.
Speaker Change #106: Tax.
Speaker Change #108: Montana, we would receive at the earliest in Q2 2025 open us what components of high single digit number in billions of euros net net of the <unk>.
Speaker Change #108: Posted a touch transaction costs.
She is really a niche.
Yes.
Speaker Change #109: Thank you I think we have two questions left Ericsson Florence or what's the next question. Yes. Next question is from ASIC identical from Houston.
Speaker Change #110: Yes. Thank you two questions first.
Speaker Change #111: In recent interactions with investors it looks like there is a topic that's come through.
Speaker Change #111: And around <unk> <unk> extension.
Until whether it comes from you from your partner or from any other source, but maybe you can update us on where you sense about extending.
Speaker Change #111: And the second question, maybe I missed it but I don't see any updates into your pipeline agenda about the <unk> Dx.
Speaker Change #111: Do you expect this to come from Teva or what can you what.
Speaker Change #111: When can we expect some phase III data on that.
Speaker Change #111: Thank you okay. Thank you.
Speaker Change #112: <unk> loss of exclusivity that depicts our compound patent expires in the U S. In March 'twenty 'twenty. One that is the patent time extended expiration dates in Europe is March 23, which is the extended interconnection date waves pediatric exclusivity, albeit in the prostate in ground and across EU mandates where everybody.
Speaker Change #112: To this compound expansion as the law.
Speaker Change #112: On top of that in both the U S and Europe, that's further patent and patent applications covering inventions related to <unk> at which have expiration dates ranging from <unk> before it is too early to speculate on later late nights picks and at this stage.
Speaker Change #113: Okay. Thank you Robert.
And our strategies.
Speaker Change #113: Internal because of course looks Cooper incident, which way we decided to go.
Speaker Change #113: Okay, and then human and so on it briefly.
Speaker Change #114: Briefly thanks for the question.
Speaker Change #114: As you've seen in the deck you've attitude as it's now known as the <unk> without an H two 2024, you should expect.
Speaker Change #114: A client from.
Speaker Change #114: Our partner Teva.
Speaker Change #114: Ourselves later this year or early next year.
Speaker Change #114: We will be very excited to share that with you when we see that.
Okay. Thank you and I think it may be the last question from Selman <unk> from Bernstein.
Speaker Change #114: Yeah.
Speaker Change #114: Great.
From Bernstein two quick questions. Please firstly for men on that you'd rather natus catches up in fact next year first half.
Speaker Change #114: Three phase two trials that will readout on this.
Speaker Change #114: Before this indication with three different from kind of affection, but was just wondering if you could give us a little bit more color on your strategy on this.
Speaker Change #114: And the population as.
Speaker Change #114: Your products on the market there are quite successful.
Speaker Change #114: So first on this would be great and then also in terms of.
Speaker Change #114: Potential of this market.
Speaker Change #115: And my second question is for Thomas.
Speaker Change #116: Thomas It's a follow up on before I was just wondering if we could have a little bit more color about that.
Speaker Change #116: My second one capacity.
Speaker Change #116: 2025.
Speaker Change #116: Is there a third manufacturing line that will be ready next year and when you mentioned the last time they will be of course in 2025 for which I just wonder if you could give us a little bit more color on these two countries.
Speaker Change #116: Thanks.
Speaker Change #117: Chess Humanum, Brian if you could comment.
Yeah. Thanks for the question.
Speaker Change #118: Focusing lands on HST, <unk>, which is a highly unmet medical need highly heterogeneous heterogeneous condition with multiple stages of that.
Speaker Change #118: The early stage big inflammatory and later on having must multi fistulas.
Speaker Change #118: <unk> disease with requiring such good demand.
Speaker Change #118: The complicated disorder with substantial ratification.
Speaker Change #118: You know I was involved with the first generation molecules in Hs.
Speaker Change #118: I, just really exemplify our strategy very clearly firstly, we are committed to a franchise as robin individual molecules, we want to serve our patients and the physicians and all stages and grades disease. In this case, we used to well credential target of ox 40 ligand in this situation as part of a signal seeking.
Speaker Change #118: Lifecycle management strategy around with telematics.
Speaker Change #118: I have always said that we once again.
Speaker Change #118: Better by understanding the targets will clearly and leverage our internal technology.
Speaker Change #118: Janet highly validated and ox 40 land, which is pre clinically credentials, putting that together using our own <unk>.
Speaker Change #118: Technology is an antibody technology.
Speaker Change #118: It gives us an opportunity to serve patients with a buyer of batteries.
E.
Speaker Change #118: Yeah.
I think it actually is already on the market and.
Speaker Change #118: Sure.
I'm Gonna Telematics, then moving one step forward, we've always expressed the view that as well as antibody. We go ahead to provide optionality for patients with small molecule, that's why Iraq for the greater which we work.
Speaker Change #118: Work very closely with our partner gives us.
Speaker Change #118: Further optionality in this bank and we look forward to seeing will be determined this space. So when we think about it you're asking about franchisee. We can come out tried application. We think optionality in short we said the hold strata of Enbridge.
Speaker Change #119: Okay, great. Thank you Ross.
Speaker Change #118: Pink.
Speaker Change #118: Hombre photos.
Speaker Change #118: The capacity if you will.
Speaker Change #118: As you know very well we are.
Speaker Change #118: We are shooting and we've come again to the triple capacity in 2024 and we've done.
Speaker Change #120: So you are talking about.
Speaker Change #120: Third line, let me be Ikea, we have already started to release and distribute <unk> from the sidelines as we speak already. So so this is already installed and that's why I'm very confident that there is no.
Speaker Change #120: LNG, but I can tell us in terms of constraint till 'twenty five.
In addition, I think U S green.
Speaker Change #120: Going back to the growth in 2025.
Speaker Change #120: Too early to give you. Some further color on this as you know, but anyway when it comes to.
Speaker Change #121: Immunization schedule first that needs to be recommendation set by the new country in which we are going to.
Speaker Change #121: And then similarly.
Speaker Change #121: Similarly.
Speaker Change #121: The overall landscape we have 25.
Speaker Change #121: Where I do see growth coming down the road is a north America increase that we see penetration of antibodies, but also an increase will be felt in Europe.
And indeed session zones with more countries has been announced.
Speaker Change #122: On the comments well thanks for that my last question, our strong business momentum continued in the third quarter with an estimated underlying 11% growth at CER with.
Speaker Change #123: Continue to execute on our launch of <unk>, we kept advancing our pipeline of new medicines, and we recently upgraded our 2024 EPS guidance.
Speaker Change #123: Pleased with our progress in becoming a pure play in science focused Biopharma company committed to serving patients and accelerating growth.
Speaker Change #124: So let me clear interest in Sanofi.