Q2 2025 Sanofi SA Earnings Call

July 31, 2025

Welcome to the Q2 2025 conference call for investors and analysts.

As usual you can find the slides in Januvia dot com.

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Here, we have the usual forward looking statements, we would like to remind you that information presented in this call contains forward looking statements, which are subject to substantial risks and uncertainties that may cause actual results to differ materially.

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As usual, we'll be making comments on our performance using constant exchange rates and other non <unk> measures.

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Numbers used by millions of euros and for Q2 2025 unless stated otherwise.

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First we have a presentation then we'll take your questions. We have kept the presentation as short as in the past at other companies report today and we aim at keeping the call to maximum one hour all included.

For Q&A, we have Brian Olivier Thomas to cover our global businesses as well as Roy our general counsel and Brendan head of manufacturing and supply.

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I'll hand, you over to Paul.

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Well, thank you and Hello, everyone on the call we delivered another strong quarter with double digit sales growth our strategic focus on innovation continues to drive our top line performance the significant contributions from our new launches vaccines and duplex.

The performance of our growth drivers, but it's more confident in our full year business outlook with that we've refined our 2025 sales guidance to high single digit percentage sales growth at.

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Constant exchange rates.

Let me highlight the performance of our new launches on slide six in Q2, our launch has generated close to 1 billion in sales continuing the momentum we saw in Q1.

You have joined the meeting as an attendee and will be muted throughout the meeting. This meeting is being recorded our strategic focus on innovation continues to drive our top line performance with significant contributions from our new launches vaccines and duplex.

Paul Hudson: Our strategic focus on innovation continues to drive our top-line performance with significant contributions from our new launches, vaccines, and duplicites. The performance of our growth drivers made us more confident in our full-year business outlook. With that, we've refined our 2025 sales guidance to high single-digit percentage sales growth at constant exchange rates. Let me highlight the performance of our new launches on slide six. In Q2, our launches generated close to €1 billion in sales, continuing the momentum we saw in Q1. Ultevio extended its strong performance, increasing market share through patient switches. The presence of Bayfortis in southern hemisphere countries was further expanded in Q2. Keep in mind these are smaller markets compared to our key launch countries in the northern hemisphere. Qphibia, following the FDA approval at the end of Q1, has recorded initial sales.

<unk> extended its strong performance increasing market share through patient switches.

The performance of our good drivers made us more confident in our full year fiscal tablet.

Presence of Bay photos in southern Hemisphere countries was further expanded in Q2 keep in mind. These are smaller markets compared to our key launch countries in the northern hemisphere.

That we've refined our 2025 sales guidance to high single digit percentage sales growth at constant exchange rates.

Qsymia following the FDA approval at the end of Q1 has recorded initial sales uptake has been as expected and we're pleased to be able to offer an additional treatment option to health care professionals and patients living with hemophilia a or b.

Let me highlight the performance of our new launches on slide six in Q2, our launch has generated close to 1 billion nordson sales continuing the momentum we saw in Q1.

On television extended its strong performance increasing market share through patient switches.

Together these nine launches now represent 10% of our total sales demonstrating our successful execution in bringing innovative medicines and vaccines to patients.

The presence of Bay photos in southern Hemisphere countries was further expanded in Q2 keep in mind. These are smaller markets compared to our key launch countries in the northern hemisphere.

<unk> sales were $3 8 billion euros up 21% in Q2, driven by strong demand in approved indications across geographies momentum has been driven by market growth across all indications with bio penetration remains low as well as by recent launches including COPD.

Paul Hudson: Uptake has been as expected, and we're pleased to be able to offer an additional treatment option to healthcare professionals and patients living with hemophilia A or B. Together, these nine launches now represent 10% of our total sales, demonstrating our successful execution in bringing innovative medicines and vaccines to patients. Duplicit sales reached €3.8 billion, up 21% in Q2, driven by the continued strong demand in approved indications across geographies. Momentum has been driven by market growth across all indications, where biopenetration remains low, as well as by recent launches, including COPD. In the US, sales reached €2.8 billion, up 22.7%, as Dupixent continues to lead in both new-to-brand prescriptions and total prescriptions across all established indications. The CSU launch is off to a promising start, supported by positive feedback from physicians and patients and broader payer coverage in the first two months.

Together these nine launches now represent 10% of our total sales demonstrating our successful execution in bringing innovative medicines and vaccines to patients.

In the U S sales reached $2 8 billion euros up 22, 7% a two pixel continues to lead in both new to brand prescriptions and total prescriptions across all established indications.

Two Pixar sales reached $3 8 billion euros up 21% in Q2, driven by the continued strong demand in approved indications across geographies momentum has been driven by market growth across all indications with buyer penetration remains low as well as by recent launches including COPD.

Sue launches off to a promising start supported by positive feedback from physicians and patients and broader payer coverage in the first two months.

Outside the U S sales again exceeded the 1 billion Mark driven by volume growth in key markets.

Eight years after its initial launch that atopic dermatitis depicts and continues to demonstrate strong and sustained growth with <unk> being its eighth indication approved in the U S.

In the U S sales reached $2 8 billion euros of 22, 7% a two pixel continues to lead in both new to brand prescriptions and total prescriptions across all established indications.

Our ongoing efforts in deepening biologic penetration and expanding indications support our ambition of reaching sales of approximately 22 billion euros in 2030 in line with previous communications at Q4.

The CSU launches off to a promising start supported by positive feedback from physicians and patients and broader payer coverage in the first two months.

Paul Hudson: Outside the US, sales again exceeded the €1 billion mark, driven by volume growth in key markets. Eight years after its initial launch in atopic dermatitis, Dupixent continues to demonstrate strong and sustained growth, with bullous pemphigoid being its eighth indication approved in the US. Our ongoing efforts in deepening biologic penetration and expanding indications support our ambition of reaching sales of approximately €22 billion in 2030, in line with previous communications at Q4. Our vaccine business delivered solid growth in Q2, with sales increasing by 10.3%, driven by the Bayfortis expansion that I just mentioned and benefiting from the effect of the late 2024-2025 flu season in the northern hemisphere. As a reminder, the larger portion of our vaccine business is in the second half of the year due to the seasonality of flu and RSV in key markets in the northern hemisphere.

Outside the U S sales again exceeded the 1 billion Mark driven by volume growth in key markets.

Our vaccine business delivered solid growth in Q2 with sales increasing by 10, 3% driven by the big 4% expansion that I, just mentioned and benefiting from the effects of the late 2020 for 2020 <unk> season in the northern Hemisphere.

Eight years after its initial launch in atopic dermatitis depicts and continues to demonstrate strong and sustained growth with bonus FEMSA going thing its eighth indication approved in the U S are all our ongoing efforts in deepening biologic penetration and expanding indications support our ambition of reaching sales of approximately 22 billion euros.

As a reminder, the larger portion of our vaccine business as in the second half of the year due to the seasonality of flu and RSV in key markets in the northern hemisphere.

In 2030 in line with previous communications at Q4.

Francois will provide indication for 2025 pay for flu vaccine sales in just a minute.

Our vaccine business delivered solid growth in Q2 with sales increasing by 10, 3% driven by the bank for this expansion that I, just mentioned and benefiting from the effect of the late 'twenty 'twenty four 'twenty five to season in the northern Hemisphere.

A vaccine franchise was further strengthened this quarter by several important R&D and regulatory milestones. A key example is the extended duration of protection for up to six months in the EU label of beef photos.

As a reminder, the larger portion of our vaccine business is in the second half of the year due to the seasonality of flu and RSV in key markets in the northern hemisphere.

And we continue to invest in their future backseat. Most recently entered an agreement to acquire by spire spire would represent a strong strategic fit with our ambition to develop vaccines that protect against multiple respiratory pathogen.

Paul Hudson: Francois will provide our indication for 2025 Bayfortis and flu vaccine sales in just a minute. Our vaccine franchise was further strengthened this quarter by several important R&D and regulatory milestones. A key example is the extended duration of protection for up to six months in the EU label of Bayfortis. And we continue to invest in the future of vaccines, most recently entering an agreement to acquire ViceBio. ViceBio would represent a strong strategic fit with our ambition to develop vaccines that can protect against multiple respiratory pathogens. It would also add an innovative technology for combination vaccines, specifically designed for vulnerable groups like the older adults and those at increased risk of severe RSV and HMPV infections. Moving to slide nine, the completion of the Blueprint medicines acquisition just two weeks ago marked a major milestone in our strategic capital redeployment.

Francois will provide a indication for 2025 bay photos, some flu vaccine sales in just a minute.

I'd also add an innovative technology for combination vaccines, specifically designed for vulnerable groups or the old adults and there's an increased risk of severe RSV and HBV infections.

A vaccine franchises further strengthen this quarter by several important R&D and regulatory milestones. A key example is the extended duration of protection for up to six months in the EU label of be photos.

Moving to slide nine the completion of the Blueprint Medicine acquisition, just two weeks ago marked a major milestone in our strategic capital redeployment.

And we continue to invest in their future vaccines. Most recently entered an agreement to acquire by spire spire would represent a strong strategic fit with our ambition to develop vaccines that protect against multiple respiratory pathogen.

<unk> significantly strengthens our position in immunology diseases, particularly with Eva and systemic mastocytosis alone with a promising pipeline.

It would also add an innovative technology for combination vaccines, specifically designed for vulnerable groups are the old adults and there's an increased risk of severe RSV and H M. P V infections.

We are very encouraged by the strong performance of babies, reaching $175 million in sales in Q2. While this performance is not included in the Sanofi Q2 financials. It underscores both the high unmet need and advocates potential as opposed to pre medicine and advanced systemic mastocytosis.

Moving to slide nine the completion of the blueprint medicines acquisition, just two weeks ago marked a major milestone in our strategic capital redeployment.

Paul Hudson: Blueprint significantly strengthens our position in rare immunology diseases, particularly with AVAKIT in systemic mastocytosis, along with a promising pipeline. We are very encouraged by the strong performance of AVAKIT, reaching $175 million in sales in Q2. While this performance is not included in the Sanofi Q2 financials, it underscores both the high unmet need and AVAKIT's potential as the first approved medicine in advanced and indolent systemic mastocytosis. The addition of Blueprint brings an established presence amongst allergists, dermatologists, and immunologists, enhancing our ability to advance our own pipeline in immunology. With the acquisition now completed, I would like to formally welcome the talented teams of Blueprint to Sanofi. Together, we look forward to the potential of AVAKIT as one of Sanofi's next blockbusters. Here, I'd like to highlight our progress in sustainability leadership.

Blueprint significantly strengthens our position in red immunology diseases, particularly with Eva kit in systemic mastocytosis alone with a promising pipeline.

The addition of blueprint brings an established presence amongst allergists dermatologists and immunologists enhancing our ability to advance our own pipeline in immunology.

We are very encouraged by the strong performance of David Kit, reaching 175 million U S dollars and sales in Q2, while this performance is not included in the Sanofi Q2 financials. It underscores both the high unmet need and advocates potential as the first pre medicine and advanced and indolent systemic mastocytosis.

With the acquisition are completed I would like to formally welcome the talented teams a blueprint to Sanofi together, we look forward to the potential of advocate as one of the Sanofi is next blockbusters.

The addition of blueprint brings an established presence amongst allergists dermatologists and immunologists enhancing our ability to advance our own pipeline in immunology.

Good example is the <unk> eco design approach will take introduce the environmental footprint of our medicines and vaccines.

With the acquisition are completed I would like to formally welcome the talented teams a blueprint to selecting together, we look forward to the potential of advocate as one of the Sanofi is next blockbusters.

By 2025, all new medicines and vaccines will incorporate eco design principles extending to our 20 top sellers by 2034.

We're already seeing impressive results with Jupiter, two chair and hex assumed through optimized manufacturing packaging and production.

Hey, I'd like to highlight our progress and sustainability leadership. We are proud that time is again ranked sanofi as the world's 10th most sustainable company across all industries are number one in pharma and biotech a good example is the ether eco design approach were taken to reduce the environmental footprint of our medicines and vaccines.

Paul Hudson: We are proud that time has again ranked Sanofi as the world's 10th most sustainable company across all industries and number one in pharma and biotech. A good example is the eco-design approach we're taking to reduce the environmental footprint of our medicines and vaccines. By 2025, all new medicines and vaccines will incorporate eco-design principles, extending to our 20 top sellers by 2030. We're already seeing impressive results with Dupixent, Toujeo, and Hexasene through optimized manufacturing, packaging, and production. Thank you. I'll now hand over to Francois, our CFO, for more details on the financials.

Thank you I'll now hand over to <unk>, our CFO for more details on the financials.

Thank you, Paul and Hello to everyone as highlighted earlier, our net sales increased by 10, 1% at constant exchange rates. In Q2. This growth was primarily driven by immunology biopharma launches by <unk> <unk>.

By 2025, all new medicines and vaccines will incorporate eco design principles extending to our 20 top sellers by 2030, we're already seeing impressive results with depiction to chair and Texas aimed through optimized manufacturing packaging and production.

Gross margin improved by one five percentage points largely led by an improved product mix and efficiencies R&D expenses increased by 17, 7% due to the lower base of comparison last year with the onetime reimbursement from <unk>.

Thank you I'll now hand over to Panther, our CFO for more details on the financials.

Franois-Xavier Roger: Thank you, Paul, and hello to everyone. As highlighted earlier, net sales increased by 10.1% at constant exchange rate in Q2. This growth was primarily driven by immunology, biopharma launches, and by Bayfortis. Gross margin improved by 1.5% points, largely led by an improved product mix and efficiencies. R&D expenses increased by 17.7% due to the lower base of comparison last year with the one-time reimbursement from Sobey. Underlying R&D expenses excluding this reimbursement increased by around 7%. We expect a moderate increase of R&D expenses in H2. Business EPS was €1.59, up 8.3%, reflecting our strong sales performance and improved gross margin. Let me make a few comments beyond Q2 and discuss H1.

Thank you Paul under Hello to everyone as highlighted on your on net sales increased by 10.1% at constant exchange rates. In Q2. These girls was primarily driven by immunology biopharma launches and by default <unk> gross margin improved by one five percentage points largely led by an improved product mix and efficiencies.

R&D expenses, excluding these reimbursements increased by around 7%, we expect a moderate increase of R&D expenses in edge too.

Business EPS was one $1 59 euro up eight 3%, reflecting our strong sales performance and improved gross margin.

R&D expenses increased by 17, 7% due to the lower base of comparison last year with the onetime reimbursement from soybeans.

Let me make a few comments beyond Q2 and discuss etch one.

G&A is increasingly niche one at around half of the right of a set of rules and 70% of the increase in SG&A, most with sales and marketing investments to support growth that we have Andrew challenges that are coming.

Underlying R&D expenses, excluding these reimbursement increased by around 7%, we expect a moderate increase of R&D expenses in edge to be.

Business EPS in the first six months of the year is up 12%, which is fully supporting our expected strong EPS rebound for the full year of 2025.

Business EPS was one and a $1 59 euro up eight 3%, reflecting our strong sales performance and improved gross margin.

Let me make a few comments beyond Q2 and discuss etch one S.

Moving to the next slide in Q2, we continued to execute our capital allocation priorities. After having received the net <expletive> around 11 billion euros from this set of a controlling stake in our pillar we have been actively redeploying this capital.

Franois-Xavier Roger: SGNA is increasing in H1 at around half of the rate of our sales growth, and 70% of the increase in SGNA goes to sales and marketing investments to support growth that we have and future launches that are coming. Business EPS in the first six months of the year is up 12%, which is fully supporting our expected strong EPS rebound for the full year 2025. Moving to the next slide, in Q2, we continue to execute our capital allocation priorities. After having received in April around €11 billion from the sale of a controlling stake in Opella, we have been actively redeploying this capital. Indeed, we have announced the acquisition of GrantBio DR0201, Vigil Neuroscience, Blueprint, and last week, ViveBio. These acquisitions are perfectly aligned with our strategy and meet our three main expectations. First, strategic fit within our core therapeutic areas.

G&A is increasingly niche one at around half of the right of offset as rules on 70% of the increase in SG&A goes to sales and marketing investments to support growth that we have on future launches that are coming.

Indeed, we have announced the acquisition of <unk>, which was number one vigilant neuroscience blueprints and last week <unk> value. These acquisition acquisitions are perfectly aligned with our strategy and meet our three main expectation.

Business EPS in the first six months of the year is up 12%, which is fully supporting our expected strong EPS rebound for the full year of 2025.

Moving to the next slide in Q2, we continued to execute our capital allocation priorities.

First <unk> fit within our core therapeutic areas Segunda scientific relevance offering differentiated medicines and vaccines unsettled financial attractiveness.

Having received in April at around 11 billion euros from the center of our conforming stacking of pillar, we have been actively redeploying the capital.

Indeed, we have announced the acquisition of trends by your D argued with whichever one Vijay to neuro neuroscience blueprint and last week Vice value. These acquisitions the acquisitions are perfectly aligned with our strategy and meet our three main expectation.

Three of our four announced acquisitions reflect our interest in early stage assets. While blueprint is at the higher end of our target range, we have confidence in its strategic value playing both in rare diseases on immunology arenas and we're confident as well in each future financial returns.

First strategy fit within our core therapeutic areas Segunda scientific relevance offering differentiated medicines and vaccines unsettled financial attractiveness.

Franois-Xavier Roger: Second, scientific relevance, offering differentiated medicines and vaccines. And third, financial attractiveness. Three of our four announced acquisitions reflect our interest in early-stage assets. While Blueprint is at the higher end of our targeted price range, we are confident in its strategic value, playing both in rare diseases and immunology areas, and we are confident as well in its future financial returns. As previously indicated, early-stage opportunities remain our primary interest. However, we always retain the flexibility to slightly expand beyond our pre-established interest when compelling opportunities arise with attractive business cases. Looking ahead, we retain further capacity for business development and M&A while remaining committed to our AA credit rating. In parallel, we are executing our €5 billion share buyback program in 2025, with over 80% already completed as of today. We remain firmly committed to completing the full program by the end of this year.

As previously indicated early stage opportunities remain our primary interest. However, we always retain the flexibility to slightly expand beyond our pre established interest when compelling opportunities arrive arise with attractive business cases.

Three of our four announced acquisitions reflect our interest in early stage assets. While blueprint is at the higher end of our target range. We are confident in its strategic value playing both in rare diseases and immunology areas and we are confident that well in each future financial returns.

Looking ahead, we retain fills our capacity for business development and M&A, while remaining committed to our double a credit rating.

In parallel we are executing our 5 billion euro share buyback program in 2025.

As previously indicated early stage opportunities remain our primary interest. However, we always retain the flexibility to slightly expand beyond a pre established interest when compelling opportunities arrive arise with attractive business cases.

Over 80% already completed as of today, we remain firmly committed to completing the full program by the end of this year.

Moving to the next slide I would like to highlight two key components of our ongoing financial performance, namely easy regimen around development balance on the <unk> royalties.

Looking ahead, we retain fills our capacity for business development and M&A, while remaining committed to our double a credit rating.

First it is important to note that the profit sharing payments from Reg on their own are increasing in direct correlation with duplex profit malls. These payments, partially offset by the development balanced compensation, we received from Regeneron.

In parallel we are executing our 5 billion euro share buyback program in 2025 with over 80% already completed as of today, we remain firmly committed to completing the full program by the end of this year.

As a reminder, sanofi as historically funded a larger share of duplex some development costs compared to our partners.

Franois-Xavier Roger: Moving to the next slide, I would like to highlight two key components of our ongoing financial performance, namely the Regeneron development balance and the MVUTRA royalties. First, it is important to note that the profit-sharing payments to Regeneron are increasing in direct correlation with Dupixent profit growth. These payments are partially offset by the development balance compensation we receive from Regeneron. As a reminder, Sanofi has historically funded a larger share of Dupixent development costs compared to our partner. Under the agreement, Regeneron reimburses up to 50% of this cumulative cost by deducting them from our profit-sharing payments. Based on current projections, we anticipate this development balance to be fully reimbursed by the end of 2026.

Moving to the next slide I would like to highlight two key components of our ongoing financial performance, namely the Richard around development balance on the <unk> royalties.

And those new agreement regimen around Reimbursable up to 50% of this cumulative cost by <unk> them from a profit sharing payments.

First it is important to note that the profit sharing payments to regimen, Iran are increasing in direct correlation with duplex profit growths. These payments are partially upset by the development balanced compensation, we received from Reg and their own as a reminder, sanofi as Easter. It currently funded a larger share of duplex on development.

Based on current projections, we anticipate these development balance to be fully reimbursed by the end of 2026.

This reimbursement arrangement is expected to result in a negative year on year impact for Sanofi.

Approximately 300 million Euro in 2026, followed by a more substantial negative impact of approximately 800 million euros in 2027.

Compared to our partner.

And Delphi agreement regimen around reimburses up to 50% of these cumulative cost by <unk> them from a profit sharing payments.

From 2020 on walls R&D costs will be shared within the same year.

Based on current projections, we anticipate these development balance to be fully reimbursed by the end of 2026.

<unk>, new <unk> streams are emerging as an increasingly important margin driver. For example, <unk> was recently approved for a new indication in both the U S with royalty rights up to 30% of sound.

Franois-Xavier Roger: This reimbursement arrangement is expected to result in a negative year-on-year BOI impact for Sanofi of approximately €300 million in 2026, followed by a more substantial negative BOI impact of approximately €800 million in 2027. From 2027 onwards, R&D costs incurred will be shared within the same year. Second, new royalty streams are emerging as an increasingly important margin driver. For example, MVUTRA was recently approved for a new indication in both the US and EU, with royalty rates up to 30% of sales. As illustrated on the right-hand side of the slide, the expected royalty revenue of this medicine, based on external consensus, will have a significant contribution to our financial outlook, probably until the end of the decade. Let me now give you a little bit more color on some key considerations for the balance of the year.

This reimbursement arrangement is expected to result in a negative year on year <unk> impact for Sanofi.

Approximately 300 million Euro in 2026, followed by a more substantial negative impact of approximately 800 million euro in 2027.

As illustrated on the right hand side of the slide the expected royalty revenue of these medicine based on external consensus.

From 2027, Unwashed R&D Thirsty code will be shared within the same year.

We have a significant contribution to our financial outlook, probably until the end of the Decatur.

Segunda, new reentry streams are emerging as an increasingly important margin driver for example, who trauma was recently approved for a new indication in both the U S and U with royalty rights up to 30% of sound.

Let me now give you a little bit more color on some key considerations for the balance of the year <unk> had a strong momentum in 2024 with high vaccine vaccine coverage rights in many markets, we anticipate modest growth for 2025 with Q4 likely to be roughly similar.

As illustrated on the right hand side of the slide the expected royalty revenue of these medicine based on external consensus.

<unk> suite.

We'd have a significant contribution to our financial outlook, probably until the end of the decade.

Flu why do we anticipate gaining market share total sales are expected to decrease by a mid teens percentage versus last year due to competitive forces in particular in the U S and in Germany.

Let me now give you a little bit more color on some key considerations for the balance of the year <unk> had a strong momentum in 2024 with high vaccinate vaccine coverage rights in many markets. We anticipate modest growth for 2025 with Q4 sales likely to be roughly similar to.

Franois-Xavier Roger: Bayfortis had a strong momentum in 2024 with high vaccine coverage rates in many markets. We anticipate modest growth for 2025, with Q4 sales likely to be roughly similar to Q3. For flu, while we anticipate gaining market share, total sales are expected to decrease by a mid-means percentage versus last year due to competitive forces, in particular in the US and in Germany. We anticipate a sales split of about 75% in Q3 and 25% in Q4. For the full year 2025, operating expenses may increase slightly due to the previously announced acquisitions. Forex impact is now estimated to be around minus 4% on sales and around minus 6% on EPS. Other items are similar to what we shared with you last quarter. For the full year 2025, we are now expecting sales growth at a high single-digit percentage at the upper range of our previous guidance.

We anticipate a sense fleet split of about 75% in Q3 on 25% in Q4.

For the full year 2025 operating expenses may increase slightly due to the previously announced acquisitions Forex impact is now estimated to be around minus 4% on sales of around minus 6% and EPS also high terms are similar to what we shared with you last quarter.

Q3.

For flu why do we anticipate gaining market share total sales are expected to decrease by a mid teens percentage versus last year due to competitive forces in particular in the U S and in Germany.

For the full year 2025, we are now expecting growth to high single digit customer edge at the upper range of our previous guidance.

We anticipate a San Felipe split of about 75% in Q3 on 25% in Q4.

For the full year 2025 operating expenses may increase slightly due to the previously announced acquisitions Forex impact is now estimated to be around minus 4% on sales on around minus 6% and EPS aldehyde terms are similar to what we shared with you last quarter.

This refinement of our sales guidance is not linked to blueprint, which is consolidated by the way from mid July 2025.

Is linked to the underlying performance of our business.

We confirm our EPS guidance of low double digit percentage growth at constant exchange rates. This is also an implied a grade.

For the full year of 2025, we are now expecting center's grocer to a high single digit customer to edge at the upper range of our previous guidance.

<unk> guidance as we know absorb a few hundreds of millions of additional costs from the newly acquired businesses largely in arm in arm.

Franois-Xavier Roger: This refinement of our sales guidance is not linked to Blueprint, which is consolidated, by the way, from mid-July 2025, but it is linked to the underlying performance of our business. We confirm our EPS guidance of a low double-digit percentage growth at constant exchange rates. This is also an implied upgrade of our EPS guidance, as we now absorb a few hundreds of millions of additional costs from the newly acquired businesses, largely in R&D. Finally, we are navigating through a dynamic world with a lot of uncertainties from potential US tariffs and EU exports. However, as all the details are still limited and not fully settled yet, we will update you along the way. I now hand over to Houman, who will provide an update on the progress of our innovative pipeline.

Refinement of our set of guidance is not linked to blueprint, which is consolidated by the way from mid July 2025, but it is linked to the underlying performance of our business we.

Finally, we are navigating through a dynamic world with a lot of uncertainties from potential U S. Tariffs on exports. However, as all of the details are still limited and not fully settled yet we will update you along the way.

We confirm our EPS guidance of low double digit percentage growth at constant exchange rates. This is also an implied upgrade of our EPS guidance as we know absorb a few hundreds of millions of additional costs from the newly acquired businesses largely in arm in arm.

No end of up to four months, we will provide an update on the progress of our innovative pipeline.

Thank you Francois.

Since our last update we received U S approval for depiction bullous pemphigoid.

<unk> coffee six week and last week, the EU approval for <unk> in newly diagnosed transplant eligible patients. Furthermore, you pick some are submitted for review in Japan, a BP and paradigm in the U S for cash agency type three with an FDA decision expected in January next year.

Finally, we are navigating through a dynamic world with a lot of uncertainties from potential U S. Tariffs on EU exports. However, also as all the details are still limited and not fully settled yet we will update you along the way.

I now hand over to Oman will provide an update on the progress of our innovative pipeline.

Despite this fact maps mixed phase III results.

Houman Ashrafian: Thank you, Francois. Since our last update, we received US approval for Dupixent, bullous pemphigoid, and menquanfibinib for six weeks, and last week, the EU approval for sarclisa in newly diagnosed transplant-eligible patients. Furthermore, Dupixent was submitted for review in Japan for BP and Serotym in the US for Gaucher's disease type 3, with an FDA decision expected in January next year. Despite its SPECT map's mixed phase 3 results, our pipeline continues to advance with new rabies vaccines showing consistent phase 3 efficacy. We have secured seven new regulatory designations, including Orphan and FastTrack, and had seven medicines featured in prestigious journals, which emphasizes our determination to accelerate our commitment in improving R&D. Last quarter, as Francois said, we acquired DR201 from GenBio, now entering phase 1 in immunology.

Thank you Francois.

Since our last update we received U S approval of a depiction bullous Pemphigoid man.

Pipeline continues to advance with knee rabies vaccine showing consistent phase III.

We have secured seven new regulatory designations, including orphan and fast track and have seven medicines feature in that.

<unk> Quad fee six week and last week, the EU approval of as a closer in newly diagnosed transplant eligible patients.

Our digital channels, which emphasizes our determination to accelerate our commitment and improving R&D.

Furthermore, if you pick them were submitted for review in Japan, a BP and Sarah time in the U S for <unk> three with an FDA decision expected in January next year.

Last quarter as Francois said, we acquired Dr. Tuesday May one front Empire now entering phase one in immunology.

Despite its back maps next phase III results.

We since May two acquisitions blueprint related to Kate and two new potential options and mid stage clinical development potential.

Pipeline continues to advance with knee rabies vaccine shank consistent phase III.

We are a secured seven new regulatory designations, including orphan and fast track and had seven medicines featured in the prestigious journal, which emphasizes our determination to accelerate our commitment and improving R&D.

Potential next generation molecule and invest in it and after some places and <unk> and inflammatory indications and lastly, vigil with Vg 3927, which has the potential to magnify and restored in Europe protective function of microglia in Alzheimer's.

Last quarter as Francois said, we acquired D ought to hear a waterfront Empire now entering phase one in immunology.

We remain committed to expanding our pipeline with more opportunity internally and externally.

Houman Ashrafian: We've since made two acquisitions: Blueprint with AVAKIT and two new potential options in mid-stage clinical development: the potential next-generation molecule alendronate for mastocytosis and Blu808 in inflammatory indications, and lastly, Vigil with VG3927, which has the potential to magnify and restore the neuroprotective function of microglia in Alzheimer's disease. We remain committed to expanding our pipeline with more opportunities, both internally and externally. We're excited about new monoclonal antibodies from multiple myeloma, which was recently designated an orphan drug, showcasing our ongoing innovation from our own research in France. Externally, we continue to augment partnerships and collaborations, working hand in hand with other leaders in the field to bring cutting-edge treatment solutions. Next slide. We're committed to addressing the large unmet medical needs for different COPD patients with Dupixent, with its SPECT map, and lastly, with lenacicamib.

We since May two acquisition blueprint with advocate and two new potential options and mid stage clinical development potential.

We're excited about new monoclonal antibody for multiple myeloma, which was recently designated orphan drug showcasing our ongoing innovation from our own research firm.

Potential next generation molecule and invest in it to masters in places and Blue <unk> and inflammatory indications and lastly, vigil with Vg 3927, which has the potential to magnify and restore the neuroprotective function of microglia in Alzheimer's.

Externally, we continue to augment partnerships and collaborations working hand in hand with the leaders in the field to bring cutting edge treatments.

Next slide.

We remain committed to expanding our pipeline with more opportunity both internally and externally.

We're committed to addressing the large unmet medical need for different applications with <unk> with its <unk> map and lastly, with Linde second make at Ats, We presented full data from Borealis, a notice phase III study showing significant reductions in exacerbations FTB, one improvement in quality of life.

We're excited about new monoclonal antibody for multiple myeloma, which was recently designated orphan drug showcasing our ongoing innovation from our own research and firm.

Externally, we continue to augment partnerships and collaborations working hand in hand with the leaders in the field to bring cutting edge treatment.

Having a legacy in COPD with <unk>.

For at the back of that targeting former smokers, we progressed with the data analysis verify went on <unk> III study, including insights from other molecules targeting the same pathway and once more advanced we will discuss with regulatory authorities and provide an update on next steps.

Next slide.

We're committed to addressing the large unmet medical need for different COPD patients with <unk> with its <unk> map and lastly, with Lynn second make at Ats, We presented full data from Borealis and notice phase III study showing significant reductions in exacerbations F&B, one improvement in quality of life.

Houman Ashrafian: At ATS, we present pool data from Borius and Notus phase 3 studies showing significant reductions in exacerbations, FEV1 improvement, and quality of life, confirming our legacy in COPD with Dupixent. For its SPECT map targeting former smokers, we're progressing with data analysis for RFI-1 and RFI-2 phase 3 studies, including insights from other molecules targeting the same pathway. And once more advanced, we will discuss with regulatory authorities and provide an update on next steps. The data will be presented at a forthcoming medical meeting. Lastly, we announced our intention to evaluate lenacicamib, our IL-13 TSLP pentavalent nanobody in a phase 2/3 COPD study this year. Based on its benefits seen in existing clinical studies and two known and proven mechanisms of action, we have faith in its dual-targeting nanobody technology with strong efficacy and proof of concept due to its deeper access into lower respiratory tract airways.

Data will be presented in a forthcoming medical.

Lastly, we announced our intention to evaluate little secondly.

I hope that <unk> tend to valent antibody in a phase II III COPD study.

Having a legacy in COPD with depiction.

For its attack in App targeting former smokers, we're progressing the data analysis verify went on <unk> phase III study, including insights from other molecules targeting the same pathway and once more advanced we will discuss with regulatory authorities and provide an update on next steps.

Based on its benefit seen in.

Existing clinical study and two known and present mechanisms of action, we have taken a dual targeting antibody technology with strong efficacy and proof of concept deeper.

Deeper access into law restrict retracting.

The data will be presented in a forthcoming medical.

<unk> data showed a 49 PPD reduction in pain.

Lastly, we announced our intention to evaluate little secondly, I hope 13 Taylor.

<unk> levels in asthma with patients at day 29.

L. A pentavalent antibody in a phase II III COPD study.

The medicine remains our main interest in respiratory conditions, thanks to its effect on Biomarkers.

Based on its benefits seen in.

Existing clinical study and two known and proven mechanisms of action, we have faith in the dual targeting non about a technology with strong efficacy and proof of concept.

Excellent.

Britain It has emerged as a safe and highly effective platform for adhesives.

The regulatory decision is expected soon for ICP with a target action date for the FDA decision on August 29 2025.

Deeper access into law respiratory tract.

Houman Ashrafian: Phase 1B data showed a 40.9% PPD reduction in phenol-level in asthma with patients at day 29. The medicine remains our main interest in respiratory conditions, thanks to its effect on biomarkers and symptoms. Next slide. Rilzabrutinib has emerged as a safe and highly effective platform for rare diseases. The regulatory decision is expected soon for ITP, with a target action date for the FDA decision on August 29, 2025. It's received its first global approval recently in the UAE. Moreover, we're pleased by the recent designations received of FastTrack for IgG4 disease and Orphan drug for WEHA and sickle cell disease, all in the US, and Orphan designation for IgG4 in the EU.

Page one b data showed a 49 ppb reduction in Athena leveled in asthma with patients at day 29.

<unk> received its first global approval recently and the UAE. Moreover.

Moreover, we are pleased by the recent designation received a fast track for IGT for diseases, and orphan drug for White Hot and sickle cell disease. All in the you asked an orphan designation for ITG for in the EU.

The medicine remains our main interest in respiratory conditions, thanks to its effect on Biomarkers incentives.

Excellent.

Where else are Britain has emerged as a safe and highly effective platform for adhesives.

To complement our presence in <unk> at <unk>.

The regulatory decision is expected soon for IDP with a target action date for the FDA decision on August 29 2025.

We presented a subcutaneous Arcadia data from three studies evaluating the convertibility of soft Lisa administered either by based on body injector or manual infusions combat. The IV results from the study across different lines of regimens, which demonstrated non inferiority with makes it the patient's preparing the on body injector.

It's received its first global approval recently in the UAE. Moreover.

Moreover, we are pleased by the recent designation received a fast tracks IGT for disease, an orphan drug for weihai and sickle cell disease. All in the you asked an orphan designation for <unk> four in the EU.

Regulatory submissions are underway with acceptances expected soon.

Houman Ashrafian: To complement our presence in rare diseases, at ASCO, we presented the subcutaneous sarclisa data from three studies evaluating the convertibility of sarclisa administered either by both on-body injector or manual infusions compared to IV results from studies across different lines and regimens, which demonstrated non-inferiority with most of the patients preferring the on-body injector. Regulatory submissions are underway, with acceptances expected soon. Finally, Afduralprin alpha, our recombinant human AAT1 fusion protein, in a phase 2/2 priority study for APA-1 antitrypsin deficiency, aiming for normal functional AAT levels with greater convenience. Data is expected H2 2025. Sanofi is deeply committed to rare diseases. We've established a global franchise with a strong presence in enzyme replacement therapies and hematology, as demonstrated by Altuvio. And lastly, Acucerone. Based on this solid foundation, we're expanding our expertise in our pipeline to address the unmet medical need in patients with rare diseases worldwide.

Finally, <unk> Alfa a recombinant human <unk> fusion protein and a phase III superiority studies.

To complement our presence in red here at <unk>, we presented a subcutaneous Arcadia data from three studies evaluating the convertibility of sock Lisa administered either by based on body injector or manual infusions compared to IV results from the study across different lines of regimens, which demonstrated non inferiority with makes it the patient's preparing the <unk>.

Upon antitrypsin deficiency, aiming for normal function normal functional <unk> levels with greater convenience.

Data is expected to 2025.

<unk> is deeply committed to rare diseases, we've established a global franchise with a strong presence in enzyme replacement therapies and hematology as demonstrated by our TVN and lastly achieve surround based.

Injected.

Regulatory submissions are underway with acceptances expected soon.

Finally, after oral print alpha a recombinant human <unk> fusion protein and a phase III superiority studies.

Based on our solid foundation, we're expanding our expertise in our pipeline to address the unmet medical need in patients with rare diseases.

Upon antitrypsin deficiency, aiming for normal function normal functional haiti levels with greater convenience stages.

Our global reach combined with our specialized knowledge positions us uniquely can make a significant impact in the lives of those affected by rare disease.

Data is expected age to 2025.

Sanofi is deeply committed to rare diseases, we've established a global franchise with a strong presence in enzyme replacement therapy and hematology as demonstrated by our <unk>, yet and lastly, Ashish Saran.

Really prove out our C. One S complemented inhibitors.

P, which a promising progress in area with remaining unmet medical need.

Despite the availability of existing therapies.

Based on the solid foundation, we're expanding our expertise in our pipeline to address the unmet medical need in patients with rapidly as well.

At PNM conferences that took place during the second quarter in Edinburgh, Scotland, We presented new long term extension data from our phase II study demonstrated that most patients improved remained stable on really pre bought forward.

Houman Ashrafian: Our global reach, combined with our specialized knowledge, positions us uniquely to make a significant impact in the lives of those affected by rare disease. Relief PRUBOT, our C1S complement inhibitor to CIDP, we showed promising progress in an area with remaining unmet medical need despite the availability of existing therapies. At PNS conferences that took place during the second quarter in Edinburgh, Scotland, we presented new long-term extension data from our phase 2 study. Part A demonstrated that most patients improved or remained stable on Relief PRUBOT at 24 weeks. Results from the Part B confirmed findings across all CIDP patient subgroups, including those who are on standard of care, refractory, or naive, where patients remain relapse-free and sustain their response at week 76. Patients showed 35% reduction in NFL levels and a strong and sustained reduction in complement activity-compensative baseline.

Our global reach combined with our specialized knowledge positions us uniquely to make a significant impact in the lives of those affected by rare disease.

Please.

Results from the part B confirm finding across all patient subgroups, including those who are on standard of care refractory or naive patients remained relapse free and sustain that response at.

Really prove out our C. One S complement inhibitor to see IDP, which a promising progress in area with remaining unmet medical need.

Despite the availability of existing therapies.

76 patient showed a 75% reduction in NFL levels, and a strong and sustained reduction in complement activity can have the best.

We'll improve our offers potential is safe effective subcutaneous option.

And now all Seth antibody mediated rejection with orphan drug designation in Japan for <unk> in the U S for ammo.

Results from the part B confirm finding across all see IDB patient subgroups, including that you weren't additive cat refractory or naive where patients remained relapse free and sustain their response at week 70 ships.

<unk> showed 35% reduction in NFL levels, and a strong and sustained reduction in complement activity comparative basis.

First head to head study for patients who are in IV AIG and remain partial responses.

Houman Ashrafian: Relief PRUBOT offers potential as a safe, effective subcutaneous option for CIDP and now also for antibody-mediated rejection, with Orphan drug designations in Japan for CIDP and the US for AMR. Our phase 3 program includes two studies: Mobilize is for patients who have experienced failure or inadequate response to standard of care therapies, which are mostly IVIG or steroids, depending on the country, and Vitalize is the first head-to-head study for patients who are on IVIG and remain partial responders. Currently, both studies expect data from H2 2026. I would like to conclude with my usual flow slide for the next 18 months, which includes a new view of 2026 split into two halves. Key upcoming studies include the phase 2, Afduralprin alpha in AATD, and Dotamate with Iranomab, and two significant phase 3 readouts with Tolerbrutinib and PPMS, and the first data for Amlitilumab in AD this year.

Really prove our offers potential is safe effective subcutaneous option SCID P and now all SaaS antibody mediated rejection with orphan drug designation in Japan for <unk> in the U S for ammo.

Apparently I studies expect data from age to 2026.

I would like to conclude my usual fly Fi for the next 18 months, which includes a new view of 2026 split into two halves.

Our phase III program includes two studies mobilize is for patients who have experienced failure or inadequate response to standard of care therapy, which are mostly IV steroids, depending on the country and vitalize. It's first it's a first head to head study for patients who are <unk> and remain partial responders thoroughly by studies and expect data.

Key upcoming studies, including the phase III, factorial, dural, <unk>, Alfa and <unk> and <unk> with our own imac and two significant phase III readout with calibrating.

Okay.

Yeah.

Next year, we expect the remaining phase three data for ambulatory <unk>.

And from age to 2026.

I would like to conclude my usual fly Fi for the next 18 months, which includes a new view of 2026 split into two halves.

Potentially followed by submission the Q4 dosing in the phase III study seeking to replicate positive data at the midstream 80 phase II study with an additional Q12 arm just has the pension of longer dosing.

Key upcoming studies, including the phase III fab thorough thorough <unk>, Alfa and <unk> and <unk> with our own imac and two significant phase III readout with Tyler Britney and NTT EMS. So the first data for <unk> and <unk>.

Dosing is also used in the extension study.

Our objective is to explore a more convenient treatment approach in J D.

As few as four injections a year potentially in the maintenance setting.

Yeah.

Houman Ashrafian: Next year, we expect the remaining phase 3 data for Amlitilumab in AD, potentially followed by submission. The Q4 dosing in the phase 3 study is seeking to replicate positive data from the stream AD phase 2 study, with an additional Q12 arm to test the potential of longer dosing in the Q12 dosing is also used in the extension study. Our objective is to explore a more convenient treatment approach in AD, with as few as four injections a year, potentially in the maintenance setting. As a reminder, recent results in asthma provided support for longer dosing intervals, potentially possible with OX40 ligand modulation on top of the AD phase 2 data that suggested sustained efficacy after ending treatment.

Next year, we expect the remaining phase III data analytical map potentially followed by submission the Q4 dosing in the phase III study seeking to replicate positive data at the midstream 80 phase II study with an additional Q12 arm as has the pension of longer dosing.

As a reminder, our recent results in asthma provided support the longer dosing intervals potentially possible with ox 40 ligand modulation on top of.

The AAV phase II data the suggested sustained efficacy after ending treatment.

Dosing is also used in the extension study.

While not while not all of our efforts we will succeed as is the nature of drug development.

Our objective is to explore a more convenient treatment approach in Haiti with as few as four injections a year potentially in the maintenance setting as a reminder, our recent results in asthma provided support to longer dosing interval potentially possible with ox 40 ligand modulation on top of.

Confident our skilled teams and advanced digital technology will drive progress in our core therapeutic areas.

I think our R&D team and colleagues for their achievements.

When you're chasing the medical science to improve the lives of patients with this I will hand back to Paul.

The AAV phase II data that suggested sustained efficacy after ending treatment.

So now have Nicole to have questions. As a reminder, we would ask you to limit your questions to one or two.

Houman Ashrafian: While not all of our efforts will succeed, as is the nature of drug development, we're confident our skilled teams and advanced digital technology will drive progress in our core therapeutic areas. I thank our R&D team and colleagues for their achievements and team chasing the miracle of science to improve the lives of patients. With this, I will hand back to Paul.

I'll note, while not all of our efforts we will succeed as is the nature of drug development.

You'll be notified when your line is open to ask questions at that time, please make sure your microphone or option to submit your questions by clicking the Q&A outcome at the bottom in discrete.

Confident our skilled teams and advanced digital technology will drive progress in our core therapeutic areas.

I think our R&D team and colleagues for their achievements.

<unk> will be red alright, a panelist.

When you're chasing the medical science to improve the lives of patients with this I will hand back to Paul.

Question. Please go ahead.

First question is from Luisa Hector from Goldman.

No.

Hi, Thank you for the call.

Paul Hudson: So now I'm going to call to your questions. As a reminder, we would ask you to limit your questions to one or two. You'll be notified when your line is ending to ask your questions. At that time, please make sure you unmute your microphone or option two, submit your question by clicking the Q&A icon at the bottom of the screen. Your question will be read by our panelists. I will take the first question. Please go ahead.

We will now have Nicole to questions. As a reminder, we would ask you to limit your questions to one or two.

I wanted to touch on the R&D transformation, because we see enormous progress at Santa Fe across the whole organization that the share price is.

You'll be notified when your line is open to ask questions at that time. Please make sure you on mute your microphone or option to submit your question by clicking the Q&A outcome at the bottom of the screen.

Still lagging and I think it's awaiting pipeline.

So on the R&D transformation I wanted to check your level of confidence given some of your recent successes, but I'll say, some more mix dataset, which occurred in house.

<unk> will be read by a panelist I will take the first question. Please go ahead.

Sarita Kapila: Yes, the first question is from Risa Hector from Berenberg. Risa?

The first question is from Luisa Hector from Gordon Greg Weaver.

And if we go back to your December Thank you.

Luisa Hector: Hi there. Thank you for the call. So I wanted to touch on the R&D transformation because we see enormous amounts of progress at Sanofi across the whole organization, but the share price is still lagging, and I think it's a waiting pipeline progress. So on the R&D transformation, I wanted to check your levels of confidence, given some of your recent successes, but also some more mixed data sets, which are still in-house. And if we go back to your December '23 R&D day, where you laid out some objectives, you were targeting a 50% increase in phase 3 trials for this year, 2025. You highlighted the new launch cohort with risk-adjusted sales over €10 billion in 2030 and your 12 blockbuster assets, of which three of those could be over €5 billion. So I wonder if you could just comment on those specifically.

Hi, Thank you for the call.

Green arc.

So I wanted to touch on the R&D transformation, because we see enormous amount of progress.

Indeed, when you laid out some of the tactics you were targeting a 50% increase in phase III trials that before 2020.

Santa Fe across the whole organization that the share price is still lagging and I think it's awaiting pipeline progress. So on the R&D transformation I wanted to check your levels of confidence given some of your recent successes, but also some more mix dataset, which a clearing house.

Alright, you.

You highlighted the new launch cohort with risk adjusted sales at the 10 billion year rate in 2013.

And your 12.

Assets of which three base could be over $5 billion.

So I wonder if you could just comment on those specifically are you on track for the phase II trial.

And if we go back to your December 'twenty three.

Are you more confident in your $10 billion by 2000 and so.

R&D day, when you laid out some of that kick you were targeting a 50% increase in phase III trials that this year 2025.

Change now that you have more technical in house. Thank you.

You highlighted the new launch cohort with risk adjusted sales at the 10 billion here in 2013 and 12.

<unk> is a very comprehensive human kind of get started.

Luisa Thank you for the question and I.

Assets of which three of those could be over 5 billion right.

Tried to remain succinct.

<unk>.

<unk> has become an R&D driven company, we are committed to innovation and the service of patients.

So I wonder if you could just comment on those specifically are you on track for the phase II trials.

Luisa Hector: Are you on track for the phase 3 trials? Are you more confident in your €10 billion by 2030? And if so, has the mix changed now that you have more data in-house? Thank you.

And I am excited by the transformation that takes place, but we have to acknowledge that in R&D transformation is something that doesn't happen overnight.

More confident in your 10 billion by 2030.

And so.

Mix change now that you have more data in house. Thank you.

Many in the industry. We believe it takes five to seven years and I'd like to believe that with a significant way through that the proof will be in the pudding and we remain humble in the face of disease.

Paul Hudson: Thank you, Louisa. Very comprehensive. Houman, do you want to get started?

Thank you Luisa very comprehensive human collagen started Louie.

Houman Ashrafian: Yeah. Louisa, thank you for the question, and I'll try to remain succinct. Sanofi has become an R&D-driven company. We are committed to innovation in the service of patients, and I'm excited by the transformation that takes place. But we have to acknowledge that an R&D transformation is something that doesn't happen overnight. Many in the industry would believe it takes five to seven years, and I'd like to believe that we're a significant way through that. The proof will be in the pudding, and we remain humble in the face of disease. To answer your question specifically and very directly, of the three big ones that you described that we talked about on the 7th of December 2023, Amlitilumab was one of the three, as were as was Frexin and belimatemfib. We remain committed to all the molecules in our portfolio.

Luisa Thank you for the question and I.

Tried to remain succinct.

Mike.

To answer your question, specifically and very directly.

Santa Fe's become an R&D driven company, we are committed to innovation and reserves of patients.

Of the three big ones that you described that we talked about on the second September.

And I am excited about the transformation that takes place, but we have to acknowledge that in R&D transformation is something that doesn't happen overnight.

2023, im going to tell him up with one of the history as well as was Frac sand.

Many in the industry. We believe it takes five to seven year and I'd like to believe that where a significant way through that the proof will be in the pudding and we remain humble in the face of disease.

We remain committed to all of the molecules in our portfolio.

I'll, let telemark will read out in the relatively near future with its first phase III, we look forward pressure testing.

<unk>.

Answer your question, specifically and very directly.

Predictions.

Of the three big ones that you described that we talked about on the second September.

Sure.

I'll stop there and hand over to Paul.

Sure.

2023, im going to tell him up with one of the three as well as <unk> Frac sand, Maryland and Sanford.

Yes.

And I think it's fair to say we've had.

When you have time to reflect on the ups and downs of this year.

We remain committed to all of the molecules in our portfolio.

While not everything has gone our way.

Houman Ashrafian: Amlitilumab will read out in the relatively near future with its first phase 3. We look forward to pressure testing our predictions. I'll stop there and hand over to Paul.

The datasets have allowed us to do some good thinking around how to go forward or not as the case may be.

I'm going to tell him I will read out in the relatively near future with its first phase III.

We look forward pressure testing.

I think human used toward humble and I would add to that because I think you know this.

Our predictions.

I'll stop there and hand over to Paul.

<unk> has been moving at such a pace.

Paul Hudson: Yeah. I mean, you know, Louisa, and I think it's fair to say we've had plenty of time to reflect on the ups and downs of this year. And while not everything has gone our way, you know, the data sets have allowed us to do some good thinking around how to go forward or not, as the case may be. You know, I think Houman used the word humble, and I would add to that because I think, you know, this transformation has been moving at such a pace that we have spent the recent months literally going back and kicking the tires to make sure that we have dotted every I, crossed every T on the studies to make sure that, you know, we will continue to push science, of course, as expected of us. What we would like to avoid is stubbing our own toe.

We have spent the recent months literally going back from kicking the tires to make sure that we have got it.

Yes.

And I think it's fair to say we've had.

Plenty of time to reflect on the ups and downs of this year and while not everything has gone our way.

Cost per boutique on those studies to make sure that.

We will continue to push science versus expected of us for what we would like to avoid is stopping our own.

The data sets have allowed us to do some good thinking around how to go forward or not as the case may be.

I think human used toward humble and I would add to that because I think you know this transformation has been moving at such a pace.

So we have some work to.

I do.

I think we remain on balance are optimistic about the nature of the big 12, and what that could mean for us of course, not everything will work.

We have spent the recent months literally going back and kicking the tires to make sure that we have dot every I cross every T. On those studies to make sure that we will continue to push science courses is expected of us for what we would like to avoid stopping our own.

Im very pleased with how the transformation has progressed.

But I think youre right by the way that is.

For some the jewelry remains out the progress is one thing, but it's repeating itself in successful phase threes.

Paul Hudson: So we have some work to do. I think we remain on balance, optimistic about the nature of the Big 12 and what that could mean for us. Of course, not everything will work. I'm very pleased with how the transformation has progressed. But I think you're right, by the way, that for some, the jury remains out. But the progress is one thing, but it's revealing itself in successful phase threes. And I think I said this. I think maybe it was you that asked me a question for reflection on a previous call. You know, I'd like to think these things could have been done faster, but I've learned a few things about being patient. So we have to do good work, be diligent, be accurate and factual, and then we just have to turn the cards over.

So we have some work to.

I think.

Do.

I said this I think maybe was you'd asked me a question for reflection on our previous call.

I think we remain on balance are optimistic about the nature of the big 12, and what that could mean for us of course, not everything will work.

I'd like to thank these things.

<unk> been done faster, but I've learned a few things about being patient. So we have to do good work be diligent.

Im very pleased with how the transformation has progressed, but I think youre right by the way that is.

Be accurate and factual.

And then we just have to turn the car type and we recognize that.

For some the jewelry remains out of the progress is one thing, but it's revealing itself in successful phase threes.

We're better just to keep our powder dry.

Yet the results show them and confidence will be built from that.

And I think.

I said this I think maybe it was due to ask me a question for reflection on our previous call.

The next question is from Richard <unk> from Jpmorgan.

I'd like to thank these things could have been done faster, but I've learned a few things about being patient. So we have to do good work be diligent.

Yes.

Thanks for taking my question.

First question just on development spend that a.

A little bit higher in the first half on both SG&A and Opex. Obviously ahead of new launches on SG&A, just how how should we think about the development of that.

Europe and factual.

And then we just have to turn the car type and we recognize that.

Paul Hudson: And we recognize that we're better just to keep up our drive. Get the results, share them, and confidence will be built from there.

Better just to keep up out of dry gas.

Probably OSA thing came out 26 as well.

Yet the results show them and confidence will be built from that.

Okay.

They have some interesting launches.

Sarita Kapila: Next question is from Richard Voster from GP Medical. Richard?

The next question is from Richard <unk> from Jpmorgan.

Maybe the last latter end of that year and in 2007.

Okay.

Houman Ashrafian: Thanks. Thanks for taking my question. First question just on development of SPEN, a little bit higher in the first half on both SGNA and Opex, obviously ahead of new launches on SGNA. Just how should we think about the development of that? Probably also thinking about '26 as well. You potentially have some interesting launches, maybe at the latter end of that year and in '27. So should we think SGNA goes up from here? R&D sit as well? You know, have we reached a level or, you know, with the trials that you're starting, should we expect that and Blueprint to go up as well? And how should we think about the margin in '26? Is that sort of at a similar level of '25? And then just a quick bit on Dupixent.

Should we think SG&A goes up from here R&D as well.

Thanks for taking my question.

First question just on development spend that a.

Have we reached a level.

A little bit higher in the first half on both SG&A and Opex. Obviously ahead of new launches on SG&A, just how how should we think about the development of that.

With the trials that Youll stocking should we expect that and blueprint.

To go up.

As well how should we think about the margin in 2016 is that sort of at a similar level of 25.

Probably OSA, thank came out 26 as well.

They have some interesting launches.

And then just a quick bet on it makes sense.

Maybe the last latter end of that year and in 2007.

And a little bit we can in China, maybe and we've seen that with some.

Should we think SG&A goes up from here R&D as well.

<unk> seen.

Who have <unk> listing in China, and some pressure in that market just just thoughts about China depicts and then the rest of the portfolio and how we should think about the grace that going forward. Thanks very much.

Have we reached a level.

With the trials that Youll, starting should we expect that and blueprint.

To go up.

As well how should we think about the margin in 2006 is that sort of at a similar level of 25.

Thanks Richard.

And it's.

Couple of questions we've had.

And then just a quick bit on Capex.

The day Omani SG&A R&D spend.

Houman Ashrafian: A little bit weak in China, maybe, and we've seen that with some products who have NDRL listing in China and some pressure in that market. Just thoughts about China, Dupixent, and the rest of the portfolio and how we should think about the growth there going forward. Thanks very much.

And a little bit we can in China, maybe and we've seen that with some.

Of course, a little bit higher in the quarter and Francois where do you think how can you guide.

<unk> seen.

Who have and Dr. Al listing in China, and some pressure in that market, just just thoughts about China and then the rest of the portfolio and how we should think about the growth there going forward. Thanks very much.

Returning to good question, so speaking on R&D.

Obviously, I mean, we reported an increase of 17% in the quarter, but if you put aside the exceptional item that each section on revenue that we had some some industrial and 7% underlying as I said earlier, we expect to be.

Paul Hudson: Thanks, Richard. I think, and it's a couple of questions we've had throughout the day or morning. SGNA, R&D, SPEN, of course, a little bit higher in the quarter. Francois, where do you think how can you guide?

Thanks Richard.

I think and it's a cut.

Couple of questions, we've had throughout the day, Oman ex SG&A R&D spend.

Probably around flat, maybe slightly up in R&D in the latter part of the yes, we will be for the full year. We said, we would be which is slightly up okay.

Of course, a little bit higher in the quarter and Francois where do you think how can you guide.

There might be a little bit of additional cost as well coming from blueprint.

Franois-Xavier Roger: Richard, it's a good question, Francois speaking. On R&D, obviously, I mean, we reported an increase of 17% in the quarter, but if you put aside the exceptional item, the exceptional revenue that we had from Sobi last year, it's 7% on the line. As I said earlier, we expect to be probably around flat, maybe slightly up in R&D in the latter part of the year. So we will be for the full year where we said we would be, which is slightly up for the full year. There might be a little bit of additional cost as well coming from Blueprint, but I mean, again, the guidance that we gave initially at the beginning of the year will be there. So there is a little bit of a phasing issue between H1 and H2. I have no concern whatsoever. On SGNA, you can see some increase as well.

Richard It's a good question so speaking on R&D.

Again, the guidance that we gave initial beginning of the year, we will be sale. So there is a little bit of a phasing issue between each one on its to have no concern whatsoever. On this journey you can see some increase as well to give you a perspective I mentioned you tonia.

Obviously, I mean, we reported an increase of 17% in the quarter, but if you put aside the exceptional item that each section on revenue that we had some sort of industrial and 7% underlying as I said earlier, we expect to be.

We have the rate of increase of his journey, which is half of for increasing sales through which means that we are benefiting from growth leverage do you expect that to continue in the future.

Probably around flat, maybe slightly up in R&D in the later part of the yes, we will be for the full year, where we said we would be which is slightly off of it.

There might be a little bit of additional cost as we are coming from blueprint.

And if you look at it 70% seven zero, 70% of the increase that we experienced in the first half.

Again, the guidance that we gave initial beginning of the year, we will be there. So there is a little bit of a phasing issue between each one on its drug no concern whatsoever on SG&A you can see some increase as well to give you a perspective I mentioned Daytona.

Went to an investment in sales and marketing to get gross which we have.

To prepare for future launches. So I think it's very healthy we arent any investment, but do expect that to continue as well, but to give you a little bit more color I don't want to go into guidance for how many seats because it's too early on at the right time to do that but just to give you a direction of travel we do expect into next couple of years to enjoy an attractive growth profile in 2031.

Franois-Xavier Roger: Just to give you a perspective, I mentioned it earlier. We have a rate of increase of SGNA, which is half of our increase in sales, so which means that we are benefiting from growth leverage. Do expect that to continue in the future. And if you look at it, 70%, 70% of the increase that we experienced in the first half went to an investment in sales and marketing to get growth, which we have, and to prepare for future launches. So I think it's very healthy because we are in an investment position. Do expect that to continue as well. But to give you a little bit more color, I don't want to go into guidance for '26 because it's too early and it's not the right time to do that, but just to give you a direction of travel.

We have the rate of increase of the journey, which is half of our increase in sales through which means that we are benefiting from growth leverage do you expect that to continue in the future.

And if you look at it 70% seven zero, 70% of increase that we experienced in the first half.

At least we will have a tight control on costs, which means basically G&A more or less flat central marketing up, but probably certainly at a lower level than sales R&D will be suddenly slightly up until they are want to be very carefully independent readouts and may be impacted a little bit as wanted by some acquisitions in BD and M&A. So we don't.

Went to an investment in sales and marketing to get gross which we have to prepare for future launches. So I think it's very healthy and.

An investment, but we do expect that to continue as well to give you a little bit more color I don't want to go into guidance for 2006, because it's too early on some of the right time to do that but just to give you a direction of travel we do expect into the next couple of years to enjoy an attractive growth profile in 2031 at least we will have a tight control on costs, which means.

Not necessarily the full visibility of where we can go year by year at this point in time, but anyway, given that we will get some of those that do we expect <unk> to increase year after year in absolute value in the next coming years. Once again, largely as a consequence of attractive growth profile in sales with the balance sheet with a tight control on.

Franois-Xavier Roger: We do expect in the next couple of years to enjoy an attractive growth profile till 2031, at least. We will have a tight control on cost, which means basically GNA more or less flat. Sales and marketing up, but probably certainly at a lower level than sales. R&D will be certainly slightly up, although there I want to be very careful because it will depend on readouts, and it may be impacted a little bit as well by some acquisitions in BD and M&A. So we don't have necessarily the full visibility of where we can go year by year at this point in time.

<unk>, basically G&A more or less flat central marketing up.

But probably certainly at the lower level of themselves.

<unk> will be certainly slightly up until they are going to be very carefully will depend on readouts and it may be impacted a little bit as wanted by some acquisitions in BD and M&A. So we don't have necessarily the full visibility of where we can go year by year at this point in time, but anyway, given that we wouldn't get vessels that do we expect <unk> to increase year after year.

Cost of raw fiber rich will get that in 'twenty, five and we will get it in the coming years as well that will give us space to absorb some specific items such as the one I mentioned earlier.

In the next couple of few outlines you reach on their own and of R&D.

Franois-Xavier Roger: But anyway, given that we will get some growth leverage, do expect our BOI to increase year after year in absolute value in the next coming years, once again, largely as a consequence of an attractive growth profile in sales with a tight control on cost and growth leverage. We'll get that in '25, and we'll get it in the coming years as well. That will give us space to absorb some specific items, such as the one I mentioned earlier, in the next couple of years, like the Regeneron end of R&D reimbursement. That one we will be able to absorb in BOI, so do expect to see our BOI increasing year after year. And I'm very confident about it.

R&D reimbursement, that's when we will be able to absorb.

Expect to see <unk>, introducing you, Australia, and I'm very confident about it.

Absolute value in the next coming years once again, largely as a consequence of an attractive growth profile in sales with the benefit with a tight control on cost on gross leverage we'll get that in 'twenty five and we'll get it in the coming years as well that will give us space to absorb some specific items such as the one I mentioned earlier.

Thank you, Brian So I think well said attractive growth profile tight management on.

Opex.

R&D broadly flat depending on successes the opposite.

This shift will be almost <unk>.

And we overlay that with the <unk> being one of the companies with the lowest generic translation profiles over the next 5678 years. So.

In the next couple of years like you read on their own and Av.

R&D reimbursement that one we will be able to absorb <unk>. So do I expect to see <unk>, you, Australia and I'm very confident about it.

It's important that we advanced the medicines to drive the growth and then from the launches, but I think.

Paul Hudson: Thank you, Francois. I think, and well said, attractive growth profile, tight management on Opex, R&D broadly flat, depending on successes or the opposite in R&D up this year, a little bit beyond we'll see. And you know, we overlay that with being one of the companies with the lowest generalization profiles over the next five, six, seven, eight years. So you know, it's important that we advance the medicines that drive the growth and then fund the launches. But I think we've come a long way as a team reshaping the business, but we have to be extremely prudent with how we deploy those investments because we want increasingly profitable growth. It's just obvious. Brian, Dupixent, China.

Thank you Francois will serve attractive growth profile tight management on Opex.

We've come a long way as a team reshaping the business, but we have to be extremely prudent with how we deploy.

Andy broadly plant, depending on successes or the opposite in R&D This year.

Those investments because.

We want increasingly profitable growth to just obvious.

We'll see.

And we overlay that with the <unk> being one of the covenants with the lowest to neuroscience Asian profiles over the next 5678 years. So.

Brian two picks in China.

Well. Thank you Richard so much for the question and I'll come to China in just a second as you probably know depictions of pretty diversified product now around the world bunch of different indications, where an eight as Paul alluded to already in the United States and so while China is a very important marketplace. It is one of many where we're actually seeing continued underlying volume growth and so I first start.

It's important that we advanced the medicines to drive the growth and then from the launches, but I think.

We've come a long way as the team reshaping the business, but we have to be extremely prudent with how we deploy those investments because.

They're actually in China, we've seen more than 30% volume growth in China. So really positive in China right. Now of course as you mentioned, we will have pricing pressures from time to time in market as is normally the case and as we planned for and we will grow through the in R&D, all actually eventually, but as we get more access to more indications in China. This is going to be a really important marketplace for us moving forward, but one of many.

We want increasingly profitable growth to just obvious.

Brian two picks in China.

Brian Foard: Well, thank you, Richard, so much for the question. And I'll come to China in just a second. As you probably know, Dupixent is a pretty diversified product now around the world, a bunch of different indications. So we're an eight, as Paul alluded to already in the United States. And so while China is a very important marketplace, it is one of many where we're actually seeing continued underlying volume growth. And so I'd first start there. Actually, in China, we've seen more than 30% volume growth in China. So really positive in China right now. Of course, as you mentioned, we will have pricing pressures from time to time in market, as is normally the case and as we plan for. And we will grow through the NR and DL actually eventually.

Thank you Richard so much for the question and I'll come to China in just a second as you probably know depictions of pretty diversified product now around the world bunch of different indications, where an eight as Carl alluded to already in the United States and so while China is a very important marketplace. It is one of many where we're actually seeing continued underlying volume growth and so I first start there.

Okay next question please.

Yes.

Next question is from Matt Weston from UBS.

Yeah.

Actually in China, we've seen more than 30% volume growth in China, So really positive in China right. Now of course as you mentioned, we will have pricing pressures from time to time in market as is normally the case and as we planned for and we will grow through the in R&D, all actually eventually, but as we get more access to more indications in China. This is going to be a really important market for our marketplace for us moving forward, but one of many.

Thank you two questions for me. Please one is on the Telemark and human if I'm at leading prescribed I'd love to know what you think I want to see for a member to tell them up.

Brian Foard: But as we get more access to more indications in China, this is going to be a really important marketplace for us moving forward, but one of many.

More efficacy than do pay two hour more efficacy that do pay at subgroups or is it really about looking for the same efficacy as do people would that better duration of treatment.

Paul Hudson: Okay. Next question, please.

Okay next question please.

Sarita Kapila: Yes. Next question is from Matthew Weston from UBS. Matthew.

Yes.

Next question is from Matt Weston from UBS.

Then just one final question.

I'll comment on tariffs I think the comment was that there was a lot of unknown have you assumed in guidance for 2025 or have you assumed the basic level, that's being discussed in the current <unk>.

Sure.

Yes.

Simon Baker: Thank you. Two questions for me, please. One is on Amlitilumab. And Houman, if I'm a leading AD prescriber, I'd love to know what you think I want to see from Amlitilumab. Do I want more efficacy than DUPI? Do I want more efficacy than DUPI in subgroups? Or is it really about looking for the same efficacy as DUPI, but with that better duration of treatment? And then just one finance question. The additional comment on tariffs, I think the comment was that there was a lot that was unknown. Have you assumed anything in guidance for 2025, or have you assumed the basic level that's being discussed in the current EU-US trade deal, or just you've moved so much inventory, it doesn't matter this year? Thank you.

Thank you two questions for me. Please one is on the Telemark.

And human if I'm at leading prescribed I'd love to know what you think I want to see from Alberta tell them up.

The U S trade deal or just you've moved so much inventory it doesn't matter. This year. Thank you, let's start there Francois.

More efficacy than do pay two hour more efficacy than <unk> subgroups or is it really about looking for the same efficacy as do people with that better duration of treatment.

Anyway, it's difficult to comment on what we don't know.

But we have run different scenarios.

And then just one final question the additional comment on tariffs.

Based on what was widely reported in the media we have looked at the impact that it could have on 2025 given that we already showed you win advanced into gear and we confirm we did not factor it in our guidance, but it will have a limited impact on 2025, because we already have inventory in place in the U S. I don't see that each win.

The comment was that there was a lot of it was unknown have you assumed thing in guidance for 2025 or have you assumed the basic level, that's being discussed in the current EU U S trade deal or just you've moved so much inventory it doesn't matter. This year. Thank you, let's start there Francois.

Paul Hudson: Let's start there, Francois.

What we know today and what we read in the media.

Franois-Xavier Roger: Yes, Matthew. Anyway, difficult to comment on what we don't know. But we have run different scenarios, obviously. And we have, based on what is widely reported in the media, we have looked at the impact that it could have on 2025, given that we are already fairly well advanced in the year. And we confirmed we did not factor it in our guidance, but it will have a limited impact on 2025 because we already have inventory in place in the US. So I don't think that it will, in fact, with what we know today and with what we read in the media, we don't think that it will impact our guidance in any way for 2025.

Yes, Matt you anyway, it's difficult to comment on what we don't know.

Don't think that it will impact our guidance in any way.

We have run different scenarios, obviously and we have based on what was widely reported in the media. We have looked at the impact that it could have on 2025, given that we already show you will advance into gear and we confirm we did not factor it in our guidance, but it will have a limited impact on 2025, because we already have inventory in place in the U S.

Thank you.

What are you expecting to see.

Thanks for the question, taking a step back I think it's important to think about the atopic dermatitis landscape.

It remains macro some concern to me that only 15% to 16% of patients with atopic dermatitis, which youre biologically biologic eligible are currently receiving therapy.

So I don't think that each win with.

What we know today on whether what we read in the in the media.

Don't think that it will impact our guidance in any way.

But tomorrow molecules and those of other.

Paul Hudson: Thank you. Houman, what are you expecting to see?

Pharmaceutical companies, we welcome new molecules in this space and I think a leading <unk> and the atopic dermatitis space and beyond we'll welcome more options for that patient.

Thank you.

What are you expecting to see.

Houman Ashrafian: So thank you for the question. Taking a step back, I think it's important to think about the atopic dermatitis landscape. And it remains, matter of some concern to me, that only 15% or 16% of patients with atopic dermatitis, which are biologically eligible, are currently receiving therapies. Both from our own molecules and those of other pharmaceutical companies, we welcome new molecules in the space. And I think a leading KOL in the atopic dermatitis space and beyond will welcome more options for their patients. Speaking specifically about Amlitilumab, the value that we see in this space is that there are a variety of patients that are highly heterogeneous and need a variety of solutions, including the fact that patients who are refractory to current agents demonstrate an upregulation of OX40 ligand in skin biopsies. What does that lead us to believe?

Thanks for the question, taking a step back I think it's important to think about the atopic dermatitis landscape.

Speaking specifically to <unk>.

And it remains macro some concern for me at only 15 or 16% of patients with atopic dermatitis, which you are biologically biologic eligible currently receiving therapy.

The value that we see in this space is that there are a variety of patient for highly heterogeneous.

A variety of solutions, including the fact that <unk>.

So tomorrow molecules and those of other.

Agents.

So a refractory to current agents demonstrates not regulation of ops 40 ligand.

Pharmaceutical companies, we welcome new molecules in this space and I think a leading <unk> in the atopic dermatitis space and beyond we'll welcome more options for their patients.

Skin biopsies, what does that lead us to believe all in all the distillate to that is that I think that a new agent comes in.

Especially as you're speaking specifically about <unk>.

<unk>.

The value that we see in this space is that there are a variety of patient for highly heterogeneous.

Stray maybe work that we've previously published that provides.

Longer interval.

A variety of solution, including the fact that.

Treatment coupled with.

<unk>.

Magnitude of treatment consistent with the standard of care would be significantly and hugely favorite in the marketplace. One other final comment newer agents to have significantly lower.

Issuers, who are refractory to current agents demonstrates not regulation of ops 40 ligand.

Skin biopsies, what does that lead us to believe all in all the distillate to that is that I think that a new agent comes in consistent with our <unk> work that we previously published that provides base.

Houman Ashrafian: All in all, the distillate of that is that I think that a new agent that comes in, consistent with our stream AD work that we previously published, that provides both a longer interval of treatment coupled with a magnitude of treatment consistent with the standard of care would be significantly and hugely favored in the marketplace. One other final comment: newer agents that have significantly lower efficacy than the standard of care have already garnered substantial interest. So a molecule that is comparable to the standard of care will be, with a longer interval, very substantially of value.

Efficacy in the standard of care have already garnered substantial interest a molecule that is comparable to the standard of care will be with the longer integral very substantially a value.

Longer interval of a.

Yes, I think.

Treatment coupled with.

Thanks, Jim.

Look history made the design, we added another wrong explore lower and tools.

Magnitude of treatment consistent with the standard of care would be significantly and hugely favored in the marketplace. One other final comment.

We look to see what that could do that we will see the data will tell US. Okay. Next question next question from <unk> <unk>.

Newer agents to have significantly lower.

From Bernstein.

Efficacy in the standard of care have already garnered substantial interest a molecule that is comparable to the standard of care will be with the longer integral very substantially a value.

No.

Uh huh.

Okay, Let's take the next question between next question from Charlie Sheen, Ken Sorry from Barclays.

Paul Hudson: Yeah, I think thanks, Houman. I think you've looked at stream AD design, and we had another arm to explore longer intervals. I think we'd love to see what that could look like. We'll see. The data will tell us. Okay, next question.

Yes, I think.

Thanks, Jim.

Look history made the design and we have another wrong explore longer intervals.

Hi can you hear me.

We look to see what that could do that we will see the data will tell US. Okay. Next question next question from Fotis <unk> from Bernstein.

Yes.

Hi, Thank you for taking my question. So I have a question on flu.

Sarita Kapila: Yes. Next question from Florence Espedes from Bernstein. Florence? Florence? Okay. Let's take the next question in between. Next question from Shirley Shin. Shin, sorry, from Barclays.

You got it at mid teens.

And primarily due to price pressure.

Could you please provide more color on how sanofi plans to mitigate.

Uh huh.

Okay, Let's take the next question between next question from Charlie Sheen, Ken Sorry from Barclays.

Aggressive pricing dynamic across multiple markets.

How are you thinking about the longer term pricing dynamics.

Luisa Hector: Hi. Can you hear me?

Hi can you hear me.

And also on top of that how do you find so far.

Paul Hudson: Yeah.

Yes.

Luisa Hector: Hi. Thank you for taking my question. So I have a question on flu. You guided the mid-team buying primarily due to price pressure. Could you please provide more color on how Sanofi plans to mitigate this, you know, aggressive pricing dynamic across multiple markets? And how are you thinking about the longer-term pricing dynamics in flu? And also, you know, on top of that, how do you find, so far, IFK Junior's leadership impact on the flu business in the US? And maybe on top of that, just that you guided high single digit for the top line, given the flu headwinds that you have already flagged. I think it actually shows a resilient business on the top line, at least. So can you please walk us through your confidence to reach that top end?

Hi, Thank you for taking my questions I have.

Sure Pat.

No.

The film business in the U S.

Got it.

Hi, primarily due to price pressure.

And maybe I'll call of that just that you got is heightened with Egypt for the top line given the no.

Could you please provide more color on how Sanofi plans to mitigate this.

Wings that you have already flat I think it actually shows eight we've been in business on the top line at least.

Aggressive pricing dynamic across multiple markets and how are you thinking about the longer term pricing dynamics, Inc.

So can you please walk us through your confidence to reach that top end.

And like what which franchise will be doing the heavy lifting in the second quarter.

And also on top of that how do you find so far I have continuous data shifts impact on.

Any color would be appreciated thank you.

The film business in the U S.

Thanks for your question Shirley.

And maybe I'll talk about that just that you got at high single digits for the top line given the headwinds that you have already flagged.

The second part of your first question. So I don't have any specific comment on.

New administration view on flu.

It actually shows eight with any business on the top line at least.

But I can give you a bit more color on that.

We are seeing the fluid flu year in 2025.

Can you please walk us through your confidence to reach that top end.

Sure.

Luisa Hector: And like what which franchise will be doing the heavy lifting in the second quarter? Any color would be appreciated. Thank you.

Do you view, we're making into it.

And like what which franchise will be doing the heavy lifting in the second quarter.

We foresee in 2025 decrease.

Any color would be appreciated thank you.

In the mid teens percentage range with a Q3 to Q4 speed of 75 to nine persons Pete <unk> understood that it's linked to a competitive pricing pressure.

Franois-Xavier Roger: Thanks for your question, Shirley. On the second part of your first question, so I don't have any specific comment on the new administration view on flu, but I can give you a bit more color on how we're seeing the full flu year in 2025. As we've mentioned, and you were making allusion to it, we foresee in 2025 a decrease of our sales in the mid-teens percentage range with a Q3 to Q4 speed of 75, 25% speed. You completely understood that it's linked to a competitive pricing pressure. Let me give you some color around it. First of all, there is a one-off impact in Germany.

Thomas.

Thanks for your question Shirley.

On the second part of your first question. So I don't have any specific comment on the new administration view on flu.

Let me give you some good all around it first of all there is a one off impact in Germany. So it's a one off effect of 2020 that EMEA munis duplicated.

I can give you a bit more color on Oh, we are seeing the full flu year in 2025.

Which is the fact that we did in the flu recommendation for <unk> in Germany and.

As we've mentioned.

You were making it into it we foresee in 2025, a decrease of our sales in the mid teens.

The addition of an adjuvant at competitor, which automatically reset the price at approximately when the price was on that I guess, yet so there's a one off there in 2025, the second part of that.

This range with a Q3 to Q4 speed of 75 to define persons Pete you completely understood that it linked to a competitive pricing pressure.

It will decrease for the year is linked to a competitive pricing pressure, mostly in the U S and a little bit in the international zone.

Let me give you some good all right first of all there is a one off impact in Germany. So it's a one off effect of 2020 that munis duplicated B Fuller, which is the fact that we did in the flu recommendation for <unk> in Germany, and the addition of an adjuvant at competitor, which automatically reset the price at a proximity alpha when the price was.

Franois-Xavier Roger: So it's a one-off effect of 2025 only and will not replicate it in the mean for a while, which is the fact that within the flu recommendation for elder in Germany, there is the addition of an adjuvanted competitor, which automatically resets the price at approximately half what the price was on the previous year. So there's a one-off there in 2025. The second part of that overall decrease for the year is linked to a competitive pricing pressure, mostly in the US and a little bit in the international zones. I think there are a couple of points that are important as well to highlight. First of all, we are a significant leader in the flu market. And let's be very clear, we expect our market share in flu to be a solid market share performance in 2025, despite this declining market in value.

I think there are a couple of points that are important to us.

First of all.

A significant and a leader in the market and let VJ Ikea, we expect our market share to be in a solid market share performance in 2025, despite the declining market in venue again, maintaining our <unk> position, which obviously comes from the fact that we have a very strong differentiated offer you.

On the progress yet so there's a one of there in 2025, the second part of that overall decrease for the year is linked to <unk>.

Competitive pricing pressure, mostly in the U S and a little bit in the international zone.

<unk>.

Further long term, but I think thats quite in line with what we had in view and that's why we've made the deal with <unk> because the way we foresee the market to a blood first of all to keep evolving to <unk> like the ones we have.

There are a couple of points that are important to highlight first of all.

A significant and a leader in the market and let's be very clear, we expect our market share to be in a solid market share performance in 2025, despite the declining market in venue.

As you can see and good safety profile.

Franois-Xavier Roger: Again, maintaining our flu leadership position, which obviously comes from the fact that we have a very strong differentiated portfolio with Fluzona, Eduse, Fluenza, and FluBlock. As for the long term, well, I think that's quite in line with what we had in view, and that's why we've made the deal with Novavax and Nuvaxovid because the way we foresee the market to evolve is, first of all, to keep evolving towards more differentiated flu vaccines, like the ones we have, that provide strong efficacy and good safety profile. Then on top of that, moving forward to a flu-COVID-19 combination where, again, you will be able to meet the quality in terms of efficacy of the differentiated flu vaccines, but of course, also the tolerability profile. And I think that with our flu-COVID-19 portfolio in development, we have a good chance to get there.

Maintaining our financial position, which obviously comes from the fact that we have a very strong differentiated portfolio with <unk> and <unk>.

Moving fallout to fluke COVID-19 competition.

Again, you will have you will be able to meet the quality in terms of efficacy of the differentiated from vaccine but of course also the tolerability profile and I think that with a few COVID-19 portfolio in there.

I saw the long term, but I think thats quite in line with what we had in view and that's why we've made the deal with <unk> because the way we foresee the market to a blood first of all to keep evolving towards more <unk> like the ones, we add beds provide.

Development method, which is to get there.

Transfer this on Sheila on the question about <unk>.

Landing in terms of sales growth for the full year. Indeed, we confirm our confidence for the high single digit level for the full year first and foremost we did nine 9% of the niche ones does <unk> leukemia or <unk>. We will continue to have a strong rules with you pick some components that were about 21% book value rules in Q2, it's amazing by the way, it's even in the mid <unk>.

Provide some efficiency and good safety profile.

Moving fallout to fluke COVID-19 competition, where again you will have you will be able to meet the quality in terms of efficacy of the differentiated from vaccine but of course also the tolerability profile and I think that with a few COVID-19 auto new in development with a good chance to get there.

By volume Agl's exports announced really impressive not only do peak century on the duty some dependent launches that contributed 10% of sales, but it also contributed in Q2, almost one fourth of our growth and gaining traction after after quarter end.

Paul Hudson: Thank you, Francois.

Suncor is unchanged on the question about landing in terms of sales growth for the full year. Indeed, we confirm our confidence for the high single digit level for the full year first and foremost we did nine 9% of the niche one does not occur this year.

Franois-Xavier Roger: Yes, I'm Shirley. On the question about landing in terms of sales growth for the full year, indeed, we confirm our confidence for the high single-digit level for the full year. First and foremost, we did 9.9% in H1. It does help for the full year. Second, we will continue to have a strong growth with Dupixent. Don't forget that we were at 21% of value growth in Q2. It's amazing, by the way. It's even in the mid-20s by volume, eight years after the launch, really impressive. It's not only Dupixent. We are not Dupixent dependent. Launches, they contributed 10% of sales, but they also contributed in Q2 almost one-fourth of our growth, and it's gaining traction quarter after quarter. And we have a resilient GenMed business. Our established products are very resilient as well. So we do confirm our high single-digit guidance for the full year.

We have a resilient to gen med business, our established product of human resilient as well so we do confirm all.

<unk>, we will continue to have a strong rules would you pick some don't forget that we were up 21% of value rules in Q2, it's amazing by the way it's even in the mid <unk> by volume Atms have towards announced really impressive you should not only do peaks aren't we on a duplex independent launches that contributed 10% of sales, but that order. So contributed in Q2 almost one four.

High single digits.

Guidance for the full year.

Let's be careful with Q3, we have flagged it already since the beginning of the year, we had very high comps last year in Q3, So do I expect to see a little bit of a slowdown in Q3 in terms of growth versus what we are experiencing niche run, but once against full confidence with high single digit by the way I think the opportunity to say it.

From a growth and is gaining traction after after quarter end.

We have a resilient to gen med business, our established product of euro resilient as well so we do confirm all.

High single digit with and without a blueprint, which not coming from from a blueprint on single digit is coming from.

High single digit.

<unk>.

Guidance for the full year.

Thank you this question.

Franois-Xavier Roger: Let's be careful with Q3. We have flagged it already since the beginning of the year. We had very high comps last year in Q3, so do expect to see a little bit of a slowdown in Q3 in terms of growth versus what we have experienced in H1. But once again, full confidence with high single-digit. By the way, I take the opportunity to say it. It's high single-digit with and without Blueprint. So it's not coming from Blueprint, high single-digit. It's coming from the best business.

Let's be careful with Q3, and we have flagged it already since the beginning of the year, we had very high comps last year in Q3. So do we expect to see a little bit of a slowdown in Q3 in terms of growth versus what we are experiencing niche one but once against full confidence with high single digit by the way I think the opportunity to say it.

Let's try again with shovels with finesse sometimes team.

<unk>.

Yes, good afternoon, everyone.

Thank you for taking my questions two please first.

On <unk> could you maybe.

<unk> more color on the ramp up in COPD as of now we have deployed.

High single digit with and without a blueprint, which not coming from from the blueprinting high single digit is coming from.

Available in certain countries and six more.

More to come.

Could you share with us where you see.

S business.

Paul Hudson: Thank you. Next question.

Thank you this question let's.

Mr deduction.

Sarita Kapila: Yes. Let's try again with Florence Espedes from Bernstein. Florence?

Let's try again with Joseph <unk> from Bernstein.

In this disease.

Question second question.

Florent Cespedes: Yes. Good afternoon. Sorry about that. Thank you for taking my questions too, please. First, on Dupixent, could you maybe give a little bit more color on the ramp-up in COPD, as now we have the product available in 13 countries and six more to come? Could you share with us where you see the best adoption in this disease? That's our first question. Second question for Paul on FDA with the recent Brooklyn acquisition and the middle-stage products. Is it fair to assume that in the future, you will look for earlier-phase assets and the transaction at more on what you used to call bolt-on around 2 to 5 billion? Any color on that would be great. Thank you.

Yes, good afternoon, sorry about that.

Sure.

<unk>.

With the recent Bruce.

Thank you for taking my questions. Two please first on <unk> could.

Acquisition and.

Pitch products is it fair to assume that.

Could you maybe.

Will it be more color on the ramp up in COPD as of now we have the products.

Sure you will look for earlier phase assets and election.

Available in certain countries and six more to come.

More on that what you used to call Bolton from two to five P. M.

Could you share with us where you see the.

That would be great. Thank you.

Mr deduction.

Thank you Brian.

And this disease. That's my first question second question for Paul.

So thank you so much for your question.

First and foremost the double digit growth that we've seen just as sprint.

Sure.

<unk>.

With the recent Bruce.

Francois you said really comes from across indications across geographies are.

Acquisition and.

Really late stage products.

Our base business actually our base indications of atopic dermatitis asthma nasal polyps some of the first indications we continue to see strong growth there, but it is really exciting to see also growth coming from new indications such as COPD CSU and even recently BP now specifically as it relates to COPD about nine months into the launch we continue to see excitement from customers and again.

Yes, we assume that in the.

For sure you will look for earlier phase assets and election that.

More on that what you used to call Bolton from two to five any color on that would be great. Thank you.

Paul Hudson: Thank you, Brian.

Sure Brian.

Brian Foard: Yeah. So thank you so much for your question. And first and foremost, the double-digit growth that we've seen, just as Francois just said, really comes from across indications, across geographies. Our base business, actually, our base indications of atopic dermatitis, asthma, nasal polyps, some of the first indications, we continue to see strong growth there. But it is really exciting to see also growth coming from new indications such as COPD, CSU, and even recently BP. Now, specifically as it relates to COPD, about nine months into the launch, we continue to see excitement from customers. And again, as a reminder, these are customers. These are really largely pulmonologists that have had a great deal of experience with Dupixent and asthma previously.

Yes. So thank you so much for your question.

First and foremost the double digit growth that we've seen just as.

As a reminder, these are customers. These are really largely pulmonologists that have had a great deal of experience with your picks in an asthma previously so the best way to look at this if you really look at the technologists community and you look at how their prescriptions have changed our volume is really growing strongly and the poems offices. Thanks to the launch of COPD in combination of course with asthma.

First of all just said really comes from across indications across geographies are.

And of course that is again really positive and we will continue to develop over time so.

Really really.

Positive start to launch of COPD and we're seeing this pretty consistently across the markets. As you mentioned $13 six more to go before the end of the year for launches.

As a reminder, these are customers. These are really largely pulmonologists that have had a great deal of experience with <unk> in asthma previously so the best way to look at this if you really look at the technologists community and you look at how their prescriptions have changed our volume has really grown strongly and the poems offices. Thanks to the launch of COPD in combination of course with asthma.

Brian Foard: So the best way to look at this, if you really look at the pulmonologist community and you look at how their prescriptions have changed, our volume has really grown strongly in the pulmons offices, thanks to the launch of COPD in combination, of course, with asthma. And of course, that is, again, really positive, and we'll continue to develop over time. So really, really positive start to the launch of COPD. And we're seeing this pretty consistently across the markets, as you mentioned, 13 and 6 more to go before the end of the year for launching in COPD.

Thank you Brian on this on the second part that we've guided for quite a while on the two to five range.

We had said.

Maybe the last year or two with step outside for the right opportunity for a single digit.

And of course that is again really positively and we will continue to develop over time so.

The blueprint opportunity was right in the sweet spot for us on this immunology axis and.

Really really.

A positive start to launch of COPD, and we're seeing that pretty consistently across the markets. As you mentioned $13 six more to go before the end of the year for launches.

We felt like we were.

Quite uniquely positioned to be able to build on the great work <unk> done.

Paul Hudson: Thank you, Brian. On the second part, though, we've guided for quite a while on the 2 to 5 range. We had said for maybe the last year or two we'd step outside for the right opportunity, but first single digit. The Blueprint opportunity was right in the sweet spot for us on this immunology rare axis. And we felt like we were quite uniquely positioned to be able to build on the great work the Blueprint team had done and to really move quickly based on our experience with one of the world's leading rare disease companies. And I think don't forget that it's literally just in the launch phase. And of course, with the LNFTNib behind that, and perhaps even a more of a out of the more of a complicated but intriguing step is 808.

And to really move quickly.

Thank you Brian on this on the second part that we've guided to a quite a while on the two to five range.

Based on our experience from the world's leading rare disease companies.

We had set for them.

And I think don't forget that it's literally just in the launch phase.

Maybe the last year or two would step outside for the right opportunity for a single digit.

And of course, with the LLS to nib behind that and perhaps EBITDA.

The blueprint opportunity was right in the sweet spot for us on this immunology rare axis and.

More of a.

Moreover out of there.

We felt like we were.

No.

Quite uniquely positioned to be able to build on the great work blueprint to midterm.

More of a complicated but intriguing step to say the way further back it could be a game changer, because these things could disappear probably into the night.

And to really move quickly based on our experience one of the world's leading rare disease companies.

But we.

We feel like it really matched what we were trying to do as for deals going forward will sort of reiterate I know you might show you just the blueprint that we get back into the two to five range not because of the financial piece, but because we continue to look at early early early and they tend to be in that range and we want to maintain that.

And I think don't forget that it's it's.

Literally it's just in the launch phase.

And of course, with the LLS to their behind that and perhaps EBITDA.

More of a.

Moreover added out of there.

More of a complicated but intriguing step as they the way further back it could be a game changer, because these things could disappear quality into the night.

Double a rating or at least we have flexibility.

Paul Hudson: Further back, it could be a game changer, of course, but these things could disappear quietly into the night. But we feel like it really matched what we were trying to do. As for deals going forward, we sort of reiterate, I know you might say, well, you just did Blueprint, but we get back into the 2 to 5 range, not because of the financial piece, but because we continue to look early, early, early, and they tend to be in that range. And we want to maintain our AA rating, or at least we have flexibility there to do that. You know, Francois said it, that our growth profile for the next five-plus years is, you know, in the top group of the industry.

To do that.

Principal said it.

But we are.

Our growth profile for the next five plus years as you know in the top group of the industry.

So it's really the emphasis remains early early early but in the areas that we are strong in where the module cost to deploy new Asa would be modest.

Just want to keep adding to that because as we get into the early third as you know depending that's when we need to be enlarged swing. Some of these assets. So it's better to go early so.

Our double a rating or at least we have flexibility.

To do that.

Francois said it.

<unk> profile for the next five plus years.

I think we try and be disciplined spending.

<unk> spent a lot of time on this and we're very particular about what we think meets our bar and I think.

As you know in the top group of the industry.

Paul Hudson: So it's really the emphasis remains early, early, early, but in the areas that we are strong in, where the marginal cost to deploy a new asset would be modest, we just want to keep adding to that because as we get into the early 30s, you know, depending, that's when we need to be in large swing some of these assets, so it's better to go early. So I think we try and be disciplined. You know, we spend a lot of time on this, and we're very particular about what we think meets our bar. And I think we're happy with how we sit. Okay. Next question.

So it's really the emphasis remains early early early but in the areas that we are strong in where the module cost to deploy the Asa would be modest.

Happy with how we said Okay. Next question next question from Sachin Jain from Bouffant machine.

Hi, guys. Thanks, taking my questions coming up all at once and then one clarification for me so I'm not going to tell him up I've answered <unk> question, you flagged imports less frequent dosing.

We just want to keep adding to that because as we get into the early Thirty's you know, depending that's when we need to be enlarged swing. Some of these vessels. So it's better to go early so.

We haven't seen it.

I think we're trying to be disciplined.

Sure Great Astra data. So just any color you gave on the strength of that data right.

We spent a lot of time on this and we're very particular about what we think meets our bar and I think.

I just wanted to clear that you've put in the K 12 week data in the.

Press releases I think it's a secondary endpoint.

Happy with how we said Okay. Next question next question from Sachin Jain from Bouffant machine.

First question second question on <unk> and Sps as you approach approval, just what should our expectations for <unk> and how that might impact launch.

Sarita Kapila: Yes. Next question from Sashin Jane from Bofal. Sashin.

Houman Ashrafian: Hi there. Thanks for taking my questions. A couple of product ones and then more clarification for me. So on Amlitilumab, the enterprise question, you flagged the importance of less frequent dosing. We haven't seen, I don't think, the Q12 RIC asset data. So just any colleague can give on the strength of that data and read to AD. I just wanted to be clear that you put the Q12 data in the AD press release as I think it's a secondary endpoint. So that's the first question. Second question on Tolerbrutinib in SPMS. As we approach approval, just what should our expectations for the RIMs be and how that might impact launch? And then just a quick clarification on a prior question on the BOI for '26, '27. So we're in no doubt, should we see BOI margin growth as well as absolute growth?

Hi, guys. Thanks, taking my questions coming up all at once and then one clarification for me. So one I'm going to tell him up I've answered <unk> question, you flagged imports less frequent dosing we haven't seen it.

And then just a quick clarification on a prior question on the <unk>.

608 satellites are in no doubt QVC.

Margin growth as well as absolute growth I heard the answer is a comment on absolutely.

Oh, great Astra data. So just any color you can give on the strength of that data right.

I just wanted to clear that U K 12 week data.

Well I think the question was on the margin.

Press releases I think it's a secondary endpoint. So thats first question second question, let's celebrate surf and Sps as you approach approval, just what should our expectations for <unk> and how that might impact launch.

Okay. Thank you, let's give us.

Session. Thank you for the question firstly.

On Emily.

When I was referring to long runs of our earlier I just for clarification are ongoing in colorectal back Q4, W. Which is a differentiated into both currently issued today topic amongst 6.1 0.2 and of course.

And then just a quick clarification on a prior question on the 20.

26, 27 parts are in no doubt.

Margin growth as well as absolute growth I heard the answer is a comment on absolutely.

Houman Ashrafian: I heard the answer as a comment on absolute BOI, but I think the question was on the margin. Thank you.

An ongoing theme throughout trials, starting with <unk>, which was a Q4 W. Dicing and then into <unk>, two et cetera. So 0.1 is that right.

Well I think the question was oncology.

Yeah.

Paul Hudson: Okay. Thank you. Let's go back to Houman. Amelie.

Okay. Thank you let's gives us.

Houman Ashrafian: Sashin, thank you for the question. Firstly, on Amelie, when I was referring to longer interval earlier, just for clarification for everyone on the call, I was talking about Q4W, which is a differentiated interval currently for the atopic dermatitis at point 1, point 2, and of course, an ongoing theme through our AD trials, starting with stream AD, which was a Q4W dosing, and then into case 1 and case 2, etc. So point 1 is that when I was asked about what a KOL would expect, I meant a Q4W dosing for an abundance of clarification. The second comment was your comment to Q12W, and there are three data points that I would direct you to. Number one is the cessation study of stream AD, the off-drug study component, as it was described.

Session. Thank you for the question firstly.

I would expect that to Q4 W. Deicing.

On Emily.

When I was referring to long runs of our earlier I just for clarification, if everyone in colorectal by Q4 W.

An abundance of clarification, the second comment with your comment to Q12, W. And there are three data points that I would direct you to number one is the.

<unk> is a differentiated integral currently for patients with atopic dermatitis and $6, one point too and of course.

Cessation study of <unk> as the off drug study competitive as it was described as you know 60% of patients had.

An ongoing theme for our IDE trials, starting with <unk>, which was a Q4 W. Dicing and then into <unk> two et cetera. So 0.1 is that when I was asked about what the caveat would expect demand to Q4 W. Dosing for an abundance of clarification. The second comment with your comment to Q12 W.

The maintenance of that response at 24 weeks, which is what the inspiration was.

However, both induction and maintenance.

Q <unk> dosing.

As you'll note from the.

And there are three data points that I would direct you to number one is the.

The Corpus are studied nine studies in the O'shaughnessy.

Cessation study of <unk> the off drug study component as it was described as you know over 60% of patients had.

Program, we will see the red thread of Q W. Go through at least four of those studies, which include a strong case to shore and.

Houman Ashrafian: As you know, over 60% of patients had a maintenance of their response at 24 weeks, which is what the inspiration was to have both an induction and maintenance Q12W dosing. And as you'll know from the Corfis of studies, nine studies in the Oceanus program, we will see the red thread of QW go through at least four of those studies, which include case 1, case 2, short, and running into S3. And the final part of that Amelie question was, thank you for noting on the asthma study that the Q12W dosing in asthma was promising, and that adds to our understanding that OX40 ligand modulation of T cells in disease does have the potential to have a longer interval interaction.

Our maintenance of that response at 24 weeks, which is what the inspiration was.

Running industry.

On a final part of that Emily question was thank you for noting on the asthma study.

However, both induction and maintenance.

Q <unk> dosing.

The.

Q12 W dosing in asthma was promising.

As you'll note from the.

And that adds to our understanding the ox 40 ligand modulation of T cells in and disease.

The coal for studies <unk> studies in the <unk>.

Program, we will see the red thread of Q W. Go through at least four of those studies, which include a strong case to shore and act.

Does have the potential to have a longer interval traction on Sps Intel Ibrutinib.

The only comment I'll make and thank you for noting the importance of the ramps any comment I'd make is it's a subjective.

Running into history.

And the final part of that Emily question was thank you for noting on the asthma study.

We have regulatory discussions and our practice is not to disclose any specific comments around the especially at this delek.

The.

Q12 W dosing in asthma was promising.

Delicate stage of discussions with our regulator. So we found the collaborative interaction with regulators.

And that adds to our understanding the ox 40 ligand modulation of T cells in and Dizzy.

Streaming gratifying and Thats important.

Thank you pencil this session on the increase of BYU author dried up as I said, we will see <unk> increasing in absolute value in 2027 and the following years is when Youre right I said, an absolute value that I'm very confident that being said I don't want to commit at this stage and as a percentage of sales don't forget. This is what I mentioned in my presentation.

Does have the potential to have a longer interval traction on Sps and celebrate nib.

Houman Ashrafian: On SPMS and Tolerbrutinib, the only comment I'll make, and thank you for noting the importance of the REMs, the only comment I'd make is it's a subject of active regulatory discussion, and our practice is not to disclose any specific comments around those, especially at this delicate stage of discussions with a regulator. So we found the collaborative interaction with a regulator extremely gratifying, and that's important.

The only comment I'll make and thank you for noting the importance of the Rams to any comment I'd make is it's a subject of active regulatory discussions and our practice is not to disclose any specific comments around especially at this delicate stage of discussions with the regulator. So we found the collaborative interaction with regulators.

We have to absorb $1 1 billion of <unk> that will not disappear, but that will.

Extremely gratifying and that's important.

Paul Hudson: Okay. Thank you, Francois.

To a certain extent because of the end of the original ramped reimbursement of R&D. So that's quite a significant amount even if we grow at high rates and we will continue growing I don't want to commit as you said we are working on it in order to try to make it varied as well as a percentage of sales, but I don't want to commit at this stage.

Thank you pencil assertion on the increase of BYU author to right. That's what I said, we will see <unk> increasing in absolute value in 2027 and the following years is when Youre right I said, an absolute value that I'm very confident that being said I don't want to commit at this stage and as a percentage of sales don't forget. This is what I mentioned in my presents.

Franois-Xavier Roger: Yes, Sashin. On the increase of BOI, you offered to write that what I said, we will see our BOI increasing in absolute value in '26, '27, and in the following years as well. And you're right. I said in absolute value. That I'm very confident. That being said, I don't want to commit at this stage as a percentage of sales. Don't forget, this is what I mentioned in my presentation earlier. We have to absorb 1.1 billion of BOI that will not disappear, but that will go to a certain extent because of the end of the regenerant reimbursement of R&D. So that's quite a significant amount. Even if we grow at a high rate, and we will continue growing, I don't want to commit at this stage.

Okay. Thank you next question, Yes. The next question from Seamus Fernandez from Guggenheim Seamus.

We have to absorb $1 1 billion of DIY that will disappear, but that will.

Great. Thanks, so much for the questions.

Due to a certain extent because of the end of the original ramp reimbursement of R&D. So that's quite a significant amount even if we grow at high rates and we will continue growing I don't want to commit at this point, we are working on it in order to try to make it varied as well as a percentage of sales, but I don't want to commit at this stage.

Just wanted to.

Second on patent estate and our patent portfolio.

In terms of how youre thinking about the opportunity there.

Franois-Xavier Roger: We are working on it in order to try to make it valid as well as a percentage of sales, but I don't want to commit at this stage.

And then maybe just as an extension to that lifecycle management opportunities that you see on a go forward basis with your partner Regeneron.

Paul Hudson: Okay. Thank you. Next question.

Okay. Thank you. Your next question next question from Seamus Fernandez from Guggenheim Seamus.

Sarita Kapila: Yes. Next question from Houmes Fernandez from Guggenheim. Houmes?

Quick second question.

It seems like you're commenting on the orthogonal combination potential.

Brian Foard: Great. Thanks so much for the question. So I just wanted to check in on patent estates and the patent portfolio, you know, in terms of how you're thinking about the opportunity there. And then maybe just as an extension to that, lifecycle management opportunities that you see on a go-forward basis with your partner, Regeneron. And then just a quick second question. Houman, it seems like you're commenting on the orthogonal combination potential that might exist with OX40. Are you really referring more to the potential to combine Amlitilumab with other assets, or are you talking about the prospect of whether it be nanobody or other OX40 ligand combinations? In particular, in HS, at least, we know OX40 and the TNF will be presented, I believe, at EADB.

Great. Thanks, so much for the question so.

Just wanted to.

Second on patent estate and our patent portfolio.

That might exist with ox 40 are you really referring more to the potential to combine <unk> with other assets or are you talking about the prospect of whether it be narrow body or other ox 40 ligand combinations in particular.

In terms of how youre thinking about the opportunity there.

And then maybe just as an extension to that lifecycle management opportunities that you see on a go forward basis with your partner Regeneron.

And IHS at least we know ox 40, and TNF will be presented I believe at the IDB just trying to get a sense of Europe thoughts around how broadly the ox 40 mechanism could be applied.

A quick second question here it seems like you're commenting on the orthogonal combination potential.

That might exist with ox 40.

Are you really referring more to the potential to combine <unk> with other assets or are you talking about the prospect of <unk>.

Various disease states.

Thank you Brian.

I guess the question was about to make sense, but in general also for the <unk> I remind you that the compound patent expires in the USA March deadline.

Whether it be narrow body or other ox 40 ligand combination in particular.

And IHS at least we know ox 40, and TNF will be presented I believe at the IDB just trying to get a sense of Europe thoughts around how broadly the ox 40 mechanism could be applied.

And it expires in March.

And with all of the exclusivity is extensions attached to them as Brian said, we've got eight indications will be spending a huge amount of money on development. You can rest assured that we have ensured that we protected all innovation at the company are prepared around the Pixar.

Brian Foard: Just trying to get a sense of your thoughts around how broadly the OX40 mechanism could be applied in various disease states. Thanks.

In various disease states.

Paul Hudson: Roy. Thank you, Roy.

Thank you Brian.

And we have a number of patents going well beyond.

Houman Ashrafian: I guess the question was about Dupixent, but in general, also. For Dupixent, I remind you that the compound patent expires in the US in March '31. In Europe, it expires in March '33 with all the exclusivities and extensions attached to them. As Brian said, we've got eight indications. We've been spending a huge amount of money on development. You can rest assured that we have ensured that we protected all the innovations that the company prepared around Dupixent, and we have a number of patents going well beyond the composition of matter patent into the '40s. And it's too early to speculate as and when we'll keep you updated on the relevant developments.

I guess the question was about to make sense, but in general also for the <unk> I remind you that the compound patent expires in the USA March 31 in Europe and expires in March had a three with all of the exclusivity is extensions attached to them as Brian said, we've got eight indications are we spending a huge amount of money on development.

The composition of matter patent into the forties and it's too early to speculate.

We'll keep you updated on the relevant developments.

Human fast if you'd come LCM with a partner in general.

Okay.

The LTM cash under the Regeneron active ongoing discussions within the alliance.

You can rest assured that we have ensured that we protected all innovations at the company are prepared around the <unk>.

We work closely with them.

Excited by the ongoing relationship which is active across the existing molecules like GP and expect lab, but also potential new opportunities that we're seeking and Kevin Emily combos.

And we have a number of patents going well beyond.

The composition of matter patent into the forties, and it's too early to speculate as and when we'll keep you updated on the relevant developments in Q.

Just say on our dashboard at the moment and bleed mono.

Paul Hudson: Thank you. Houman, fast, if you can, LCM with our partner, Regeneron.

Lumen fast if you can LCM with our partner in general.

Very much in the in the.

Houman Ashrafian: The LCM in discussion with Regeneron, active ongoing discussions within the alliance. We work closely with them. We are excited by the ongoing relationship, which is active across the existing molecules like DUPI and Expecnab, but also potential new opportunities that we're seeking to get.

Headlines windscreen and every other part of the front of the car.

The LTM.

Under the Regeneron.

Our focus is 100%.

Active ongoing discussions within the alliance.

At shooting on delivering those studies over the next year or so at large ATM program and in terms of so that is absolutely. Our focus in terms of combination therapy Ox 40 ligand is an important biological node licensing b cell biology, and far beyond the opportunity to do combination therapies as we've already demonstrated by the positive.

Work closely with them.

Cited by the ongoing relationship which is active across the existing molecules like GTA and expect lab, but also potential new opportunities that we're seeking to thank Kevin Emily combos.

Paul Hudson: Thank you. Amelie, Tombo's.

Houman Ashrafian: Firstly, let me just say, on our dashboard at the moment, Amelie Mono is very much in the headlights windscreen and every other part of the front of the car. Our focus is 100% on executing on delivering those studies over the next year or so at the large Oceana program. And in terms of, so that is absolutely our focus. In terms of combination therapies, OX40 ligand is an important biological node, licensing B cell biology and far beyond the opportunity to do combination therapies, as we've already demonstrated with a positive result in Brevecamig in HS, as you say, which is about to be presented, is going to open a whole new vista.

Let me just say on our dashboard at the moment emblem mono.

Very much in the in the in the headlines windscreen and every other part of the front of the car all focuses 100%.

Results in the spring that can make NHS.

As you say, which is not to be presented as getting too.

Opened a whole new Vista. Okay. Thank you prescription next question from Simon Baker from Redburn Simon.

At heating on delivering those studies over the next year or so at large ATM program and in terms of so that is absolutely. Our focus in terms of combination therapy Ox 40 ligand is an important biological node licensing <unk> GM far beyond the opportunity to do combination therapies as we've already demonstrated with a positive result.

Thank you for taking my question two.

Two quick ones. If I may please firstly could you just give us an update on the current trends and your outlook for pay Fortis.

In the U S and then moving to blueprint on Blue HOA.

That's great that can make NHS.

As you say, which is about three presented is getting too.

The literature has been peppered with reports on kitchen inhibition in inflammatory disease.

And a whole new Vista. Okay. Thank you next question next question from Simon Baker from Redburn Simon.

Paul Hudson: Okay. Thank you. Next question.

10 to 20 years. So I'm just wondering if you could give us your thoughts on the.

Sarita Kapila: Next question from Simon Baker from Redburn. Simon?

Why do you see <unk> inhibition in that setting is an interesting area and specifically what appeals to you about the blueprint assay. Thanks, so much.

Simon Baker: Thank you for taking my question. Two quick ones, if I may, please. Firstly, could you just give us an update on the current trends and your outlook for Bayfortis in the US? And then moving to Blueprint and Blu808, the literature has been peppered with reports on kit inhibition in inflammatory disease for a thick end of 20 years. So I just wonder if you could give us your thoughts, Houman, on why you see kit inhibition in that setting as an interesting area and specifically what appeals to you about the Blueprint asset. Thanks so much.

Thank you for taking my question.

Two quick ones. If I may please firstly could you just give us an update on the current trends and your outlook for pay Fortis.

Tomo Petronas so about two two we as discussed before we see some growth for before so the all in in 2025 this will come from market expansion.

In the U S.

Then moving to blueprint.

<unk>.

The literature has been peppered with reports on kitchen inhibition in inflammatory disease.

As <unk> is going to more than module.

You know very well that there is.

20 years, so I'm just wondering if you could give us your thoughts.

So the competition entering into the fee I just want to take the opportunity of wild and new product is also no connectivity both market to be very different extremely very different and five <unk>.

Why do you see <unk> inhibition in that setting is an interesting area and specifically what appeals to you about the blueprint assay. Thanks, so much Tom.

Paul Hudson: Tombo's, Bayfortis.

They told us so <unk> do we as discussed before we see some growth for <unk> in 2025, this will come from market expansion.

Franois-Xavier Roger: So Bayfortis, as discussed before, we see some growth for Bayfortis overall in 2025. This will come from market expansion as Bayfortis is going to more and more geographies. You know very well that there is further competition entering into the field. I just want to take the opportunity that while the new product is also Merclantibodine, both Merclantibodines are very different, extremely very different half-life. Bayfortis has a half-life of 71 days. The other product has a half-life of 42 days and a very, very different real-world experience with Bayfortis being studied in a quarter million of babies with outstanding results. Due to that, we expect that overall USVCR will keep increasing this year and next year. It takes three to five years for a pediatric intervention for vaccination coverage rates to reach their peak.

71 days.

Welcome today, and very very different <unk> experience will be felt is being set easy question.

<unk> outstanding reasons due to that we expect that overall U S. Vcs, we keeping breathing visa on next year X three to five years of our P&C dimension.

As the <unk> is going to more than module that you know very well that there is a competition.

Competition entering into the feed I just want to take the opportunity of wild and new product is also noted activity both more going to be very different extremely.

Condition commentary to reach the peaks of resi <unk> would increase and <unk> will remain the dominant player thanks to its benefit.

There are different and fly based on the cycle.

71 days.

Briefly on Simon I guess, you can never take a.

Second for you today, and very very different world experience with <unk> that easy question <unk> with outstanding reason due to that we expect that overall you as this year, we keeping breathing visa on next year three to five years.

Chemist out of view when you speak.

Firstly, let's start by saying, we are honored and privileged to have the.

Blueprint team join us they really are the experts in each apology and.

We can dimension vaccination coverage rates to reach their peak.

Franois-Xavier Roger: So overall, our USV prevention will increase, and Bayfortis will remain the dominant player thanks to its asset.

Our industry is characterized by experts being able to achieve outstanding results speaking very briefly about muscle biology as you know based on your background, specifically targeting wild type C kit has been.

Or is it <unk> would increase and before <unk> will remain the dominant player. Thanks to his benefit. Thank you briefly human Orlando.

Paul Hudson: Thank you. Briefly, Houman, on 808.

Houman Ashrafian: Yeah. Simon, I guess you can never take the chemist out of you when you speak. Firstly, let's start by saying we're honored and privileged to have the Blueprint team join us. They really are the experts in EKIT biology, and our industry is characterized by experts being able to achieve outstanding results. Speaking very briefly about mast cell biology, as you know, based on your background specifically, targeting wild-type CKIT has been a sort of holy grail of the industry for decades. You know very well from the times of William Oesler, Sir William Oesler, mast cell and their role in inflammation in diseases, classical diseases such as asthma, COPD, but far beyond have been important. If we can target wild-type CKIT with an adequate therapeutic index, then it will open up a whole number of examples.

Simon I guess, you can never take the chemist out of you when you speak where we're at.

Sort of Holy Grail of the industry.

For decades, you know very well from the times, William OE slots and William Alvarez and.

Firstly, let's start by saying, we are honored and privileged to have the blip.

Marcel and their role in inflammation diseases, Pascal diseases, such as asthma and COPD, but far beyond have been important if we can target wild type C kit with an adequate therapeutic index.

Blueprint team join us they really are the experts in each apology and.

We will open up a number of advantages I think most of the year.

I think ultimately.

I'm not sure to hub and the pipeline since been around a long time, if we get it right. This could be great. If it doesn't then.

Our sort of Holy Grail of the industry.

For a decade, you know very well from the times William OE Glass will America, Marcel and their role in inflammation diseases classical diseases, such as asthma and COPD, but far beyond have been important if we can target wild type C kit with inadequate therapeutic index then it will open up a number of advantages I think.

Early enough for us to make the tough call, but we're optimistic let's see Okay. Next question next question from Savi <unk> from Morgan Stanley Sorry, Tom.

Hi, Thanks for taking my questions and sorry to come back to margins that maybe you know should we think about 2006 margins being flat as a floor.

Paul Hudson: Yeah. I think, I think ultimately, it's a nice shot to have in the pipeline. It's been around a long time. If we get it right, it could be great. And if it doesn't, then it's early enough for us to make the tough call, but we're optimistic. Let's see. Okay. Next question.

Most of the year.

I think ultimately it's a nice shot to have in the pipeline. So it's been around a long time, if we get it right. This could be great and if it doesn't.

You provided more color on refunding income navigate your royalty if they should we expect divestment income I believe its 500 million this year continuing to try to fix it and place. Thank you Stefan.

It's early enough for us to make the tough call, but we're optimistic let's see Okay. Next question next question from Saudi that Gupta from Morgan Stanley Sorry, Tom.

Yes.

Okay.

Sarita Kapila: Next question from Sarita Capilla from Morgan Stanley. Sarita?

Hey, Ken.

Matt maybe you could have that and the blades on the molecule given the liver talks actually you diligence.

Luisa Hector: Hi. Thanks for taking my questions. Sorry to come back to margins, but maybe, you know, should we think about '26 margins being flat as a floor? And you provided more color on refunding income and future royalties, but should we expect divestment income - I believe it's 500 million this year - to continue into '26 and 2027? And then just a quick one on Blueprint and AVAKIT competition from Cogent's Bezukastanib. Maybe you could have some words on the molecule given the liver talks. I'm sure you diligenced the landscape, but do you believe Blueprint adequately factored competition in the 2 billion peak sales guide? Thank you.

Hi, Thanks for taking my questions and sorry to come back to margins that maybe you should we think about 2006 margin being flat as a floor and you provided more color Ron refunding income navigator royalty if they should we expect divestment income I believe its 500 million this year to continue into 'twenty.

Scott do you believe blueprint adequately factored competition <unk> peak sales guidance. Thank you. Thank you Francois just under 26 I don't want to guide for currency gets too early to nuts, and so we'll do that on Utah.

Once again confirm the fact that we are working towards an increase in <unk> next year.

Seven.

And then just a quick one on the printing <unk> competition from co against at that Ducommun, Ed maybe you could have that anthem will ads on the molecule given the liver Tox I am sure you diligence to add Dan Skype that do you believe adequately factored competition in the <unk>.

It was the benefit of leverage.

The strong growth on the top line again.

I do confirm what you said, which is we do expect to get to the public but look potentially more was went from a disposal in terms of capital gains from the disposal sites regularly.

<unk> sales guidance. Thank you. Thank you Francois just under 26 I don't want to guide for condensing, it's too early to Donuts and so we'll do that in due time, but once again confirm the fact that we are working towards an increase in <unk> next year.

Paul Hudson: Thank you, Francois.

Franois-Xavier Roger: On the '26, I don't want to guide for '26. It's too early to do that. And so we'll do that on due time. But once again, I confirm the fact that we are working towards a new phase in BOI next year that will start with the benefit of growth leverage and the strong growth on the top line again. I do confirm what you said, which is we do expect to get probably half a billion. Why not potentially more, by the way, from disposal in terms of capital gains from the disposal of success? We regularly have about half a billion. Might be a little bit more in the future, but at least that amount.

In my view.

But at least at the moment okay.

Sure Brian.

Yes, I think it's a fantastic question and I'll start kind of the same where we were.

What was the benefit on gross leverage.

Talk about a lot of the disease states across immunology, which is first and foremost. This is a very underpenetrated marketplace. They've just launched into the space and if you look at the growth for advocated is because they are finding new patients getting new patients on therapy, keeping the patients on therapy. So as we've said before new competition into any space like that it's actually good for this space from a noise level standpoint, finding these patients.

The strong growth on the top line again.

I do confirm what you said, which is we do expect to get to probably one potentially more by the way from the disposal in terms of capital gains from the disposal of assets regularly both that could be in my view.

But.

User demand okay.

Paul Hudson: Okay. I wonder, and to Brian, competitiveness of AVAKIT?

<unk>, it's a really symptomatic disease state that presents itself in a lot of really important specialists that we call on a regular basis today and will continue to call out in the future that said I think they have done a very nice job of factoring future competition into the mix not only for market growth, but also for our leadership share. So we feel very confident with advocate in its profile, especially.

Sure Brian competitiveness.

Brian Foard: Yeah. I think it's a fantastic question. And I'll start kind of the same way we talk about a lot of the disease states across immunology, which is, first and foremost, this is a very underpenetrated marketplace. They've just launched into this space. And if you look at the growth for AVAKIT, it is because they are finding new patients, getting new patients on therapy, keeping new patients on therapy. So as we've said before, new competition into any space like that is actually good for the space from a noise-level standpoint, finding these patients. It's a really symptomatic disease state that presents itself in a lot of really important specialists that we call on on a regular basis today and will continue to call on in the future.

Yes, I think it's a fantastic question and I'll start kind of the same way we talk about a lot of the disease states across immunology, which is first and foremost. This is a very underpenetrated marketplace. They've just launched into the space and if you look at the growth for advocated is because they are finding new patients getting new patients on therapy, keeping new patients on therapy. So as we've said before new.

Recent light of the readout that we just saw from basic alright.

Competition into any space like that it's actually good for this space from a noise level standpoint, finding these patients it's a really symptomatic disease state.

Alright. Thank you next question next question from people that have joined from BNP.

Is that.

Okay.

Presents itself in a lot of really important specialist that we call on a regular basis today and will continue to call out in the future that said I think that they have done a very nice job of factoring future competition into the mix not only for market growth, but also for our leadership share. So we feel very confident with advocate in its profile, especially in recent light of the readout that we just saw from basic.

Yes.

Okay.

For coal.

Number one.

Brian Foard: That said, I think that they have done a very nice job of factoring future competition into the mix, not only for market growth, but also for leadership share. So we feel very confident with AVAKIT and its profile, especially in recent light of the readout that we just saw from Bezuk.

Around the IL 17.

Part of your high level for you.

Below the garlock shrink below.

Hello Charles.

Thanks.

This week.

<unk>.

Topic dermatitis, and then secondly, sorry about the obligatory question.

Paul Hudson: All right. Thank you. Next question.

Alright. Thank you next question next question from people have had joint from BNP.

Sarita Kapila: Yes. Next question from Peter Hedlund from BNT.

U S pricing.

Is that.

The step up in share the largest stimulates thoughts.

Okay.

Houman Ashrafian: Yeah. Thanks, Hedlund, BNT. Just a couple of support. Number one, interesting gaining development enthusiasm around IL-17, becoming part of your pipeline portfolio in light of the growing opportunity in HS and on competitive data this week showing very promising efficacy in atopic dermatitis. And then secondly, of course, sorry about the oblivious question on US pricing reform and the funders that Europe step up and share the load. Just interested in what your latest thoughts are. And just a very quick, so if I could, please run in for Houman. Just when should we expect to hear about next steps and plans on your go-forward strategy on the topic of MAB or whether it will get terminated? Is this something that we should expect to hear about this year, or are you still doing the work?

Yes.

Okay. That's helpful.

Just a very quick side, if I could squeeze one in for whom I'm.

<unk>.

Number one.

Sure.

Just when should we expect to hear about lock stop some plans go forward structure, let's pick them, all but whether it will get settled.

Around the IL 17.

High level so young.

Hello Hello.

Hello Charles.

We should expect to hear about the share or a total loss.

So this week showing very promising screen.

Topic dermatitis, and then secondly of course, sorry about the obligatory question on.

Okay. Thanks, very much I'm not sure what the question was on IL 17 was it.

Pricing for all alone.

The icon.

You have to step up and show the largest incident.

With that so you'll have to tell me what was the question. It was in a day.

So just a very.

Very quick sorry, if I could squeeze one in.

Just when should we expect to hear about lockstep some plans.

Okay.

Sorry, let's go to another question the other part of the question.

Go forward structure look to pick them up or whether we.

Human maybe it to back them up and then I'll answer pricing.

We should expect to hear about the share or you're still doing the work.

And then we'll come back to that question.

Paul Hudson: Okay, Peter, thanks very much. I'm not sure what the question was on IL-17. Was it? I can't read that. So you'll have to tell me. What was the question? It was in AD?

Okay. Thanks, very much I'm not sure what the question was on IL 17.

Okay.

We are obviously, hoping for better results than a mixed result, we're working.

It.

The icon.

Closely across the alliance with Regeneron.

With that so you'll have to tell me what was the question. It was in a day.

Working through the.

Houman Ashrafian: Yeah.

The basis for the difference there if I wanted to.

Paul Hudson: Okay. I'm not quite-- guys, sorry. Let's go to another question, another part of the question. Houman, maybe it's Epecumab, then I'll answer pricing, and then we'll come back to that question.

Okay.

Sorry, let's go to another question the other part of the question.

And once we figure that out.

We have to recognize that we will go back to the regulator the next steps.

Human maybe it's picking up and then I'll answer pricing.

And then we'll come back to that question, Okay setback lab.

Okay. So then.

Houman Ashrafian: Okay. So Epecumab, we were obviously hoping for better results than a mixed result. We're working closely across the alliance with Regeneron, working through the basis for the difference in the RFI 1 and 2. And once we figured that out, you know, we have to recognize that RFI 2 failed. We will go back to the regulator for next steps.

Maybe just as here, but you're pretty broke up on the first part I think the question was about <unk> 17 for sure.

Okay.

We are obviously, hoping for better results that a mixed result, we're working.

UCB and add some early data.

Closely across the alliance with Regeneron.

We've coupled together here.

Working through the.

The basis for the difference therefore I wanted to.

We believe the assets we have in <unk>.

Will be the difference.

And once we figure that out.

Surprises that we will get coastal and see how that looks decide how competitive it is.

We have to recognize that <unk> filed we will go back to the regulator for next steps.

I think in immunology, there's always an opportunity to show an impact whether you can really make a difference.

Paul Hudson: Okay. So then, you know, Peter, maybe it was just us here, but you really broke up on the first part. I think the question was about IL-17 for sure. The UCB, I think, had some early data. I think that's what we've cobbled together here. Look, we believe the assets we have in AD will be the difference. So no surprises there. We'll get case one, see how that looks, decide how competitive it is. I think in immunology, there's always an opportunity to show an impact. Whether you can really make a difference, we will see. You know, I'm very familiar with IL-17s, but I think our emphasis has been on breakthrough technologies and opportunities and intervals to try and really improve the patient outcome. US pricing, I think you said at the second part of it, and the relationship between Europe and the US.

Okay. So then.

Maybe just as here, but you're pretty broke up on the first part I think the question was about <unk> 17 for sure.

We will see.

I'm very familiar with IL seventeens, but I think our emphasis has been on breakthrough technologies and opportunities and integrals to try and improve the <unk>.

UCB I think add some early data I think that's what we've coupled together here.

We believe the assets we have in <unk>.

Patient outcome.

Will be the difference so no surprises there, we'll get kos want to see how that looks decide how competitive it is.

<unk> pricing I think you said that the second part of it.

The relationship between Europe, and the U S.

Very quickly we don't know the final voting from the White house on how we'll look between the two or three of the 32 investigation MFN in tariffs.

I think in immunology, there's always an opportunity to show an impact whether you can really make a difference.

We will see.

I'm very familiar with IL seventeens, but I think our emphasis has been on breakthrough technologies and opportunities and integrals to trend.

Tie ups once they are established and we know them and book stuff that we'll know what the relationship is like the other two components are know, whether it's a 15% tariff with the caveats or 15, plus or 15, less we don't know and nobody knows but we prepared for delivering the guidance. This year. That's the minimum so don't feel will cause robotics.

Improve.

The patient outcome U S pricing I think you said that the second part of it.

The relationship between Europe, and the U S.

Paul Hudson: But just very quickly, we don't know the final voting from the White House on how we'll look between the 2/32 investigation, MFN, and tariffs. And tariffs, once they're established and we know them, important step. Then we'll know what the relationship is like with the other two components and know whether it's a 15% tariff with a caveat or a 15% plus or a 15% less. We don't know. And nobody knows. But we've prepared for delivering the guidance this year. That's the minimum. So don't feel we're casual about it because we're absolutely not. I've been on record as many CEOs now about innovation access in Europe. And there's part of me, as a parent and as a, you know, member of society, would still be concerned that more than 50% of the medicines approved in Europe are not available for patients in Europe.

Just very quickly we don't know the final voting from the White house on how we'll look between the two or three of the 32 investigation MFN in tariffs and tie ups. Once they are established and we know them important step that we will know what the relationship is like the other two components are know, whether it's a 15% type.

Absolutely not.

It's been a record as many see as now about innovation access in Europe and this pardon me.

Pattern and as though.

No member of Society.

Still concerned more than 50% of the medicines approved in Europe, and not available to patients in Europe.

With the caveats or 15, plus or 15, less we don't know and nobody knows but we prepared for delivering the guidance. This year. That's the minimum so don't feel we're careful about it because we're absolutely not.

I think the value of the medicine should be painful.

A lot of people, who could contribute to economies in GDP of medicines were made available to them.

I've been on record many see as now about innovation access in Europe, and there's part of me.

As interested in budgets for health care can be access to innovation for more patients as I am in the pricing conversation, we will see where that so when we have the facts, we will share them, but we're a health care company, we'd like to see more patients connectors excuse known patient connect system monetization next question next question from David Risinger from urine.

As a parent.

Member of Society would still concerned more than 50% of the medicines approved in Europe and not available to patients in Europe.

Paul Hudson: I think the value of a medicine should be paid for. And I think there's a lot of people who could contribute to economies and GDP if medicines were made available to them. I'm as interested in budgets for healthcare, giving access to innovation for more patients as I am in the pricing conversation. We will see when that's out. When we have the facts, we will share them. But we're a healthcare company. We'd like to see more patients get access. Excuse me, more patients get access to more innovation. Next question?

I think the value of the medicine should be painful and I know, there's a lot of people who could contribute to economies in GDP of medicines, we've made available to them.

David.

Right.

Yes, thanks very much. So I just have one question. Please could you discuss your expectations for total Ibrutinib in P Pms, who men and.

If you could just comment on efficacy expectations and also what you are anticipating.

From the liver toxicity data in that trial, thanks very much.

Sarita Kapila: Yes. Next question from David Rehinger from LIVINC. David?

Inc. David.

Thank you, yes so.

Sure.

Paul Hudson: Yes. Thanks very much. So I just have one question, please. Could you discuss your expectations for Tolerbrutinib in PPMS, Houman, and if you could just comment on efficacy expectations and also what you're anticipating from the liver toxicity data in that trial? Thanks very much. Thank you, Houman.

Thanks for the question succinctly I add as the significant biological overlap between SDM S&P <unk> major paper around genetics.

Yes, thanks very much so I just have one question. Please.

Could you discuss your expectations for total of Burton.

<unk> disease, a couple years ago from Australia.

In P Pms, who man and if you could just comment on efficacy expectations and also what you're anticipating from the liver toxicity data in that trial, thanks very much.

Our view is there is at least some biological reason to believe that.

Smell during inflammation and Brian component inflammation are important in both diseases and there may be some read through we look forward seeing those results later in the year.

In Q, yes.

With respect to toxicity profile will deliver we expect it to be commensurate with what we see in SMS.

Houman Ashrafian: Yeah. So thanks for the question. Succinctly, I add there's a significant biological overlap between SPMS and PPMS. There was a major paper around genetics of progressive disease a couple of years ago from Australia. Our view is there is at least some biological reason to believe that smoldering inflammation and brain compartment inflammation are important in both diseases and that there may be some read-through. We look forward to seeing those results later in the year. And with respect to the toxicity profile with the liver, we expect it to be commensurate with what we see in SPMS.

Thanks for the question succinctly I add as a significant biological overlap between SDM S&P Tms Theres major paper around genetics progressive disease, a couple years ago from Australia.

I think maybe we have time for one more one more question and final Ben Jackson from Jefferies.

<unk>.

Our view is there is at least some biological reason to believe that.

Alright. Thanks for the question just one final one for me then on Im going to tell him up.

Smell during inflammation and Brian component inflammation are important in both diseases and that there may be some read through we look forward seeing those results later in the year.

If we think about the efficacy that we've been talking about it several questions here what is it specifically that you think physicians and patients are looking for in terms of which endpoint. We've obviously have a lot of noise recently about perhaps.

With respect to toxicity profile will deliver we expect it to be commensurate with what we see in SMS.

Benefit is helping to drive.

Paul Hudson: Okay. I think maybe we have time for one more.

Penetration to the market and clearly within your phase III designs, you have built in some form since it up so I guess, which of the endpoints we should be paying most attention to and then secondly is there any reason to believe there'd be ox 40 mechanism for perhaps.

I think maybe we have time for one more one more question and final from Ben Jackson from Jefferies.

Sarita Kapila: One more question and final from Ben Jackson from JFreeze. Ben?

Paul Hudson: Great. Thanks for the question. Just one final one for me then on Amlitilumab. If we think about the efficacy that we've been talking about in several questions here, what is it specifically that you think physicians and patients are looking for in terms of which endpoint? We've obviously had a lot of noise recently about perhaps how an itch benefit is helping to drive penetration to the market. And clearly, within your phase three designs, you have built in some itch endpoints into that. So I guess which of the endpoints we should be paying most attention to? And then secondly, is there any reason to believe that the OX40 mechanism could perhaps have a beneficial effect on itch? Thank you.

Great. Thanks for the question just one final one for me that on the Telemark.

We think about the efficacy that we've been talking about it several questions here what is it specifically that you think physicians and patients are looking for in terms of which endpoint. We've obviously had a lot of noise recently about perhaps how it is.

Have a beneficial effect on edge. Thank you.

Yes, so again briefly.

Think that second question first the ox 40 like anthology that Humira.

Benefit is helping to drive.

Already worked out specifically the ligand.

Penetration to the market and clearly within your phase three designs you have built in some niche endpoints since it up so I guess, which of the endpoints we should be paying most attention to and then secondly is there any reason to believe there'd be ox 40 mechanism perhaps.

It's likely serious effect on T cells and <unk>.

Our inflammatory axis have an effect, certainly o'meara to helping comprising 75% possibly edge.

As a literature on that.

Can you discuss offline and with respect to the endpoints I think that the key here, both regulatory and from a community perspective.

Have a beneficial effect on edge. Thank you.

Houman Ashrafian: Yeah. So again, briefly, I think that your second question first, the OX40 ligand biology that Chimera had already worked out, specifically the ligand, is likely through its effect on T cells and the neuroinflammatory axis to have an effect certainly on the atopic dermatitis and possibly itch. There's a literature on that. Happy to discuss it offline. And with respect to the endpoints, I think that the key here, both regulatory and from a community perspective, is IJ01 and EAD75. They're obviously the things that are the entry ticket. And those in a disorder which has significant low biopen rate, I think that those would be the entry tickets for what we do.

Yes, so again briefly.

<unk> one.

I think that your second question first the ox 40 like anthology that Humira.

And.

75%, obviously the things that.

Already worked out specifically the ligand.

The entry ticket.

Disorder, which has significant.

Likely serious effect on T cells and inflammatory.

By our pen rate I think that.

Three axis have an effect certainly on the atopic.

Would be the entry tickets.

Seven 5%, possibly edge.

Okay. Ben Thanks last question, we delivered strong performance in Q2 temporary 1% sales growth refined our 2025 sales guidance. The same time, we confirm our guidance strong business EPS rebound.

The literature on that I'm happy to discuss offline and with respect to the endpoints I think that the key here, both regulatory and from a community perspective.

<unk> one.

<unk> continued to make progress despite the mixed results it's affected by them in COPD and we eagerly anticipate several important phase III data readouts in the second half of the year, including the Telemark Halliburton augmenting our own pipeline because the acquisition of blueprint rare diseases, we will remain focused on strategically redeploy capital towards pipeline and growth as we.

And.

75%, obviously the things that.

The entry ticket and.

Disorder, which has significant by our pen rate I think that those would be the entry ticket.

Paul Hudson: Okay, Ben. Thanks for that. Last question. We delivered strong performance in Q2 with 10.1% sales growth. We refined our 2025 sales guidance. At the same time, we confirmed our guidance for strong business EPS rebound. Our pipeline continues to make progress despite the mixed results for it's Epecumab and COPD. And we eagerly anticipate several important phase three data readouts in the second half of the year, including Amlitilumab.I'll

Okay. Ben Thanks last question, we delivered strong performance in Q2 temporary 1% sales growth refined our 2025 sales guidance at the same time, we confirm our guidance strong business EPS rebound.

Continue to advance our strategy with this I wish everyone a good summer will political.

Yes.

Wireline continued to make progress despite the mixed results it's affected by them in COPD and we eagerly anticipate several important phase III data readouts in the second half of the year, including Palomar Halliburton augmenting our own pipeline because the acquisition of blueprint rare diseases, we will remain focused on strategically redeploy capital towards pipeline and growth as.

Speaker 1: abridge it. Augmenting our own pipeline because of the acquisition of Blueprint and Rare Diseases, we'll remain focused on strategically redeploying capital towards pipeline and growth as we continue to advance our strategy. With this, I wish everyone a good summer. We'll close the call.

We continue to advance our strategy with this I wish everyone a good summer will political.

Yes.

Paul Hudson: Goodbye.

Goodbye.

Q2 2025 Sanofi SA Earnings Call

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