Q1 2026 Sanofi SA Earnings Call

April 23, 2026

Speaker #1: As usual, you'll find the slides on sanofi.com. Please turn to slide number 3. Here we have the usual forward-looking statements. We would like to remind you that information presented in this code contains forward-looking statements which are subject to substantial risk and uncertainties that may cause actual results to differ materially.

Speaker #1: We encourage you to read this disclaimer in our slide presentation. In addition, we refer you to our new form 20F on file with the USSC since February, and our French universal registration document, for description of these risk factors.

Speaker #1: As usual, we'll be making comments on our performance using constant exchange rates, and other non-IFRS measures. Numbers used are in millions of euros, and for the first quarter, unless stated otherwise.

Speaker #1: Please turn to slide number 4. First, we have a short presentation, then we'll take your questions. We aim at keeping it all to one hour, including the questions.

Speaker #1: We are mindful that other companies are also reporting today. For the Q&A, we have Manuela, and Thomas, to cover our global businesses as well as Roy, our general counsel, and Brendan, head of manufacturing and supply.

Speaker #1: You can participate in this Q&A in two ways: either raise your hand in Zoom, or submit your question using the Q&A feature. With that, I'll now hand you over to Olivier, our interim CEO.

Speaker #2: Hello everyone, and thank you for joining our conference call. As Thomas mentioned, I'm the interim CEO before our new CEO, Belen Garrijo. Join Sanofi in May's after next week get started, I also want to thank Paul Hudson for his work as CEO from 2019 to 2026, and his work with the management team here at Sanofi.

Speaker #2: Now, on results, I'm pleased to report that we delivered a strong start in 2026, with double-digit sales growth and earnings growth, reflecting strong performance across our company.

Speaker #2: Pharma launches performed well, driven by Ecavit, Altuvio, and Sarpiza. This exemplifies our ability under commercial side. Modest vaccine growth was led by our expanded PPH portfolio, which now includes the hepatitis, B vaccine, Epistave B, following the Dinovac acquisition that closed in February.

Speaker #2: Other medicines were impacted by the ongoing divestment of legacy medicines, and Modest contraction in older medicines in the rest of the world. Dupixent continued its strong performance, with continued underlying volume growth across indications and market.

Speaker #2: While dollar growth was boosted from a lower base of comparison in the US in 2025. Overall, the first quarter demonstrated solid progress across our key growth drivers and sets up well for the remainder of the year, with guidance and change.

Speaker #2: Turning now to slide 6, our launches continued to drive strong momentum, and represented 14% of total sales. The performance was led by Altuvio, with 325 million euros in sales, up 42%, followed by Befortus, with 284 million euros, reflecting continued global expansion.

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Speaker #2: Sarpiza grew by 30%, to 167 million euros, driven by higher demand in all geographies, reflecting increased use in the frontline setting. We saw medicines and vaccines from our recent acquisition contribute meaningfully to growth.

Speaker #2: Ecavit delivered 170 million euros, and Epistave B contributed 46 million euros, since the completion of the Dinovac acquisition. Recently launched, well-received FLIA and Micorza continued to make progress, as we expand access for patients.

Speaker #1: This meeting is being recorded.

Olivier Charmeil: Reflecting increased use in the frontline setting. We saw medicines and vaccines from our recent acquisition contribute meaningfully to growth. Akévie delivered EUR 170 million, and Heplisav-B contributed EUR 46 million since the completion of the Dynavax acquisition. Recently launched Wayrilz, Qfitlia, and Nucorzo continued to make progress as we expand access for patients. Overall, our launch portfolio grew by 44% versus last year, or approximately 22% excluding acquisitions. The performance of our launches reflects our continued focus on commercial delivery across the business. Turning now to slide 7. Dupixent continued to deliver exceptional sales growth, with Q1 sales approaching EUR 4.2 billion. Strong year-over-year growth was driven by continued market penetration across existing and new indications, as well as a lower basis of comparison in the US last year.

Speaker #2: Reflecting increased use in the frontline setting, we saw medicines and vaccines from our recent acquisition contribute meaningfully to growth. ACAVIT delivered €170 million, and Episslab B contributed €46 million since the completion of the Dynavax acquisition.

Speaker #2: Overall, our launch portfolio grew by 44%. Versus last year, or approximately 22% excluding acquisitions. The performance of our launches reflects our continued focus on commercial delivery, across the business.

Speaker #2: Recently launched, well-received FLIA and MICORSO continued to make progress as we expand access for patients. Overall, our launch portfolio grew by 44%. Versus last year, we're up approximately 22%, excluding acquisitions.

Speaker #2: Turning now to slide 7. Dupixent continued to deliver exceptional sales growth, with first quarter sales approaching 4.2 billion euros. Strong year-over-year growth was driven by continued market penetration, across existing and new indications.

Speaker #2: The performance of our launches reflects our continued focus on commercial delivery across the business. Turning now to slide 7. Dupixent continued to deliver exceptional sales growth, with first-quarter sales approaching €4.2 billion.

Speaker #2: As well as a lower basis of comparison, in the US last year. As shared previously, we anticipate volume-driven growth to continue, with some normalization in the second half of the year, as new launches annualize and comparison are getting tougher.

Speaker #2: Strong year-over-year growth was driven by continued market penetration across existing and new indications, as well as a lower basis of comparison in the US last year.

Speaker #2: Dupixent remains the number one prescribed biologic medicine, across top specialists in the US. Reflecting the confidence of physicians in Dupixent's efficacy, and safety profile.

Olivier Charmeil: As shared previously, we anticipate volume-driven growth to continue with some normalization in H2, as new launches annualize and comparisons are getting tougher. Dupixent remains the number one prescribed biologic medicine across top specialists in the US, reflecting the confidence of physicians in Dupixent's efficacy and safety profile. This performance underscores our ability to successfully launch and scale across multiple indications and geographies. With the US approval in February in allergic fungal rhinosinusitis, Dupixent is now approved in nine indications and reached more than 1.4 million patients. Moving now to slide 8, where we outline the multiple options we have in place to sustain value creation of the Dupixent franchise. Let me walk you through each of these three pillars. First, defend.

Speaker #2: As shared previously, we anticipate volume-driven growth to continue, with some normalization in the second half of the year as new launches annualize and comparisons are getting tougher.

Speaker #2: This performance underscores our ability to successfully launch and scale across multiple indications and geographies. With the US approval in February in allergic fungal rhinosinusitis, Dupixent is now approved in nine indications, and reached more than 1.4 million patients.

Speaker #2: Dupixent remains the number one prescribed biologic medicine across top specialists in the US, reflecting the confidence of physicians in Dupixent's efficacy and safety profile.

Speaker #2: Moving now to slide 8. Where we outlined the multiple options we have in place, to sustain value creation, for the Dupixent franchise. Let me walk you through each of the three pillars.

Speaker #2: Moving now to slide 8, where we outlined the multiple options we have in place to sustain value creation for the Dupixent franchise. Let me walk you through each of the three pillars.

Speaker #2: First, defend. We have a robust pattern portfolio of issued patterns and pending applications. With expiration dates running from 2031 to 2045. We have a vigorous defense plan, with the expectation to protect Dupixent innovations beyond the US pattern expiration in March, 2031.

Speaker #2: First, defend. We have a robust patent portfolio of issued patents and pending applications, with expiration dates running from 2031 to 2045. We have a vigorous defense plan, with the expectation to protect Dupixent innovations beyond the U.S. patent expiration in March 2031.

Olivier Charmeil: We have a robust patent portfolio of issued patents and pending applications, with expiration dates running from 2031 to 2045. We have a vigorous defense plan with the expectation to protect Dupixent's innovations beyond the US compound patent expiration in March 2031. Second, extend. We have the potential to extend Dupixent's dosing interval to every four weeks to improve patient convenience. We will pursue this through two approaches, a higher dose approach in asthma, where development is currently ongoing, and a co-formulation approach for which clinical studies are expected to start in H2 2023. Third, innovate. We can potentially pursue new molecules to leverage our existing alliance infrastructure to bring new medicines to patients. Together, these three pillars represent multiple complementary options for continued value creation to sustain the long-term durability of the Dupixent franchise.

Speaker #2: Second, extend. We have the potential to extend Dupixent's dosing interval to every four weeks, to improve patient convenience. We will pursue this through two approaches.

Speaker #2: A higher dose approach in asthma, where development is currently ongoing, and a co-formulation approach for which clinical studies are expected to start in the second half of 2026.

Speaker #2: Second, extend. We have the potential to extend Dupixent’s dosing interval to every four weeks to improve patient convenience. We will pursue this through two approaches.

Speaker #2: And third, innovate. We can potentially pursue new molecules to leverage our existing alliance infrastructure, to bring new medicines to patients. Together, these three pillars represent multiple complementary options for continued value creation, to sustain the long-term durability of the Dupixent franchise.

Speaker #2: A higher dose approach in asthma, where development is currently ongoing, and a co-formulation approach for which clinical studies are expected to start in the second half of 2026.

Speaker #2: And third, innovate. We can potentially pursue new molecules to leverage our existing alliance infrastructure to bring new medicines to patients. Together, these three pillars represent multiple complementary options for continued value creation to sustain the long-term durability of the Dupixent franchise.

Speaker #2: Turning now to slide 9. Rare diseases are named rare, as they affect relatively few people. Fewer than five in 10,000 people, according to the EU.

Speaker #2: And in the US, rare disease affects fewer than 200,000 people. But collectively, rare disease impacts hundreds of millions of individuals worldwide. Many people face years of misdiagnosis, and limited treatment options.

Olivier Charmeil: Turning now to slide 9. Rare diseases are named rare as they affect relatively few people, fewer than 5 in 10,000 people according to the EU. In the US, a rare disease affects fewer than 200,000 people. Collectively, rare diseases impact hundreds of millions of individuals worldwide. Many people face years of misdiagnosis and limited treatment options. Sanofi has built a deep differentiated expertise across rare disease, spanning from lysosomal storage disease, rare blood disorders, and more recently, systemic mastocytosis disorders. With this, we now have a very sustainable and competitive business. In Q1, this business reached nearly EUR 1.8 billion and grew by 20%, led by Akévie and ALTUVIIIO. Our growth is fueled by innovation and by new launches, which contribute to almost half of sales.

Speaker #2: Turning now to slide 9. Rare diseases are named rare as they affect relatively few people—fewer than 5 in 10,000 people, according to the EU.

Speaker #2: Sanofi, as built a deep differentiated expertise, across rare disease, spanning from lysosomal storage disease, rare blood disorders, and more recently, systemic mastocytosis disorders. With this, we now have a very sustainable and competitive business.

Speaker #2: Sanofi has built a deep, differentiated expertise across rare disease, spanning from lysosomal storage diseases, rare blood disorders, and, more recently, systemic mastocytosis disorders. With this, we now have a very sustainable and competitive business.

Speaker #2: In Q1, this business reached nearly 1.8 billion euros. And grew by 20%, led by Ecavit and Altuvio. Our growth is fueled by innovation and by new launches, which contribute to almost half of sales.

Speaker #2: In Q1, this business reached nearly €1.8 billion and grew by 20%, led by ACAVIT and Altuvio. Our growth is fueled by innovation and by new launches, which contribute to almost half of sales.

Speaker #2: Sanofi's mission in this space is clear: to bring transformative therapies to patients faster, and to remain a long-term partner to the rare disease communities we serve.

Speaker #2: On slide 10, vaccine sales reached 1.3 billion euros, in the first quarter. Reflecting solid underlying fundamentals. Following the consolidation of Dinovac in February, PPH and Booster now include Epistave B, which grew by 18% on a market pro forma basis.

Olivier Charmeil: Sanofi's mission in this space is clear: to bring transformative therapies to patients faster and to remain a long-term partner to the rare disease communities we serve. On slide ten, vaccine sales reached EUR 1.3 billion in Q1, reflecting solid underlying fundamentals. Following the consolidation of Dynavax in February, PPH and booster now include Heplisav-B, which grew by 18% on a market pro forma basis. Now, I want to share some recent headlines. A new study published in The Lancet Infectious Diseases showed for the first time the benefit of Beyfortus in the second season. On top of an 86% reduction in RSV LRTI hospitalization in the first season, it demonstrated a 55% reduction in hospitalization for infants immunized in the first season. This underscores Beyfortus' differentiated clinical profile and long-term value for patients.

Speaker #2: Sanofi's mission in this space is clear: to bring transformative therapies to patients faster, and to remain a long-term partner to the rare disease communities we serve.

Speaker #2: On slide 10, vaccine sales reached €1.3 billion in the first quarter, reflecting solid underlying fundamentals. Following the consolidation of Dynavax in February, PPH and booster now include Episslab B, which grew by 18% on a market pro forma basis.

Speaker #2: Now, I want to share some recent headlines. A new study published in the Lancet Infectious Diseases showed, for the first time, the benefit of Befortus in the second season.

Speaker #2: On top of an 86% reduction in RSV, LRTI, hospitalization in the first season. It demonstrated a 55% reduction in hospitalization for infants, immunized in the first season.

Speaker #2: Now, I want to share some recent headlines. A new study published in The Lancet Infectious Diseases showed, for the first time, the benefit of Beyfortus in the second season.

Speaker #2: On top of an 86% reduction in RSV LRTI hospitalization in the first season, it demonstrated a 55% reduction in hospitalization for infants immunized in the first season.

Speaker #2: This underscores Befortus' differentiated clinical profile, and long-term value for patients. Additionally, our non-mRNA COVID-19 vaccines continue to differentiate on tolerability, as supported by the data presented at ESC MID.

Speaker #2: This underscores Befortus' differentiated clinical profile and long-term value for patients. Additionally, Nuvaxovid, our non-mRNA COVID-19 vaccine, continues to differentiate on tolerability, as supported by the data presented at ESC MID—a key advantage that could help drive higher COVID immunization rates.

Speaker #2: A key advantage that could help drive higher COVID immunization rates. In the first quarter, our vaccine business demonstrated resilience and depth. We continue to deliver on our commercial priorities, strengthen our pipeline, through disciplined business development.

Olivier Charmeil: Additionally, Nuvaxovid, our non-mRNA COVID-19 vaccine, continues to differentiate on tolerability as supported by the data presented at ESCMID, a key advantage that could help drive higher COVID immunization rates. In Q1, our vaccine business demonstrated resilience and depth. We continue to deliver on our commercial priorities, strengthen our pipeline through disciplined business development, and build real-world evidence that supports the long-term value. This gives us confidence in the trajectory ahead. Before moving to the financials, I'm pleased to highlight Sanofi's 25-year partnership with the WHO to eliminate sleeping sickness, a neglected disease affecting the vulnerable population in Africa. Since 2011, we have achieved three major milestones. In 2009, together with partners, we introduced the first effective and safe combined therapy to treat late-stage sleeping sickness. We co-developed with DNDi, the first oral treatment, which was approved in 2018.

Speaker #2: And build real-world evidence that supports the long-term value. This gives us confidence in the trajectory ahead. Before moving to the financials, I'm pleased to highlight Sanofi's 25-year partnership with the WHO, to eliminate sleeping sickness.

Speaker #2: In the first quarter, our vaccine business demonstrated resilience and depth. We continue to deliver on our commercial priorities and strengthen our pipeline through disciplined business development.

Speaker #2: A neglected disease, affecting vulnerable population in Africa. Since 2001, we have achieved three major milestones. In 2009, together with partner, we introduced the first effective and safe combined therapy to treat late-stage sleeping sickness.

Speaker #2: A neglected disease affecting vulnerable populations in Africa. Since 2001, we have achieved three major milestones. In 2009, together with partners, we introduced the first effective and safe combined therapy to treat late-stage sleeping sickness.

Speaker #2: Then, we co-developed with DNDI the first oral treatment, which was approved in 2018. These efforts helped reduce new cases by 98% between 2001 and 2024.

Speaker #2: Then, we co-developed with DNDi the first oral treatment, which was approved in 2018. These efforts helped reduce new cases by 98% between 2001 and 2024.

Speaker #2: In February, Acosibarol also co-developed with DNDI received a positive CHMP opinion. Acosibarol is the first single-dose treatment, and requires no hospitalization or lumbar puncture.

Olivier Charmeil: These efforts helped reduce new cases by 98% between 2011 and 2024. In February, Acoziborole, also co-developed with DNDi, received a positive CHMP opinion. Acoziborole is the first single-dose treatment and requires no hospitalization or lumbar puncture. Due to its simplicity, it can be easily administered in remote village, supporting the WHO goals to eliminate the disease by 2030. Through the Sanofi Foundation, we donate these medicines free of charge to patients. Thank you, and I will now hand over to François, our CFO, for more detail on the financials.

Speaker #2: In February, Acosibarol, also co-developed with DNDi, received a positive CHMP opinion. Acosibarol is the first single-dose treatment and requires no hospitalization or lumbar puncture.

Speaker #2: Due to its simplicity, it can be easily administered in remote villages, supporting the WHO goals to eliminate the disease by 2030. Through the Sanofi Foundation, we donate these medicines free of charge, to patients.

Speaker #2: Thank you, and I will now hand over to François, our CFO, for more details on the financials.

Speaker #1: Thank you, Olivier, and hello to everyone. Starting with slide 13, NetSense grew by 13.6% to 10.5 billion euros in the first quarter, our growth was supported by three main drivers: Dupixent, our recent launches, and recent acquisitions as well.

Speaker #2: Thank you, and I will now hand over to Françoise, our CFO, for more details on the financials.

Speaker #3: Thank you, Olivier, and hello to everyone. Starting with slide 13, NetSense grew by 13.6% to €10.5 billion in the first quarter. Our growth was supported by three main drivers: Dupixent, our recent launches, and recent acquisitions as well.

François-Xavier Roger: Thank you, Olivier, and hello to everyone. Starting with slide 13, net sales grew by 13.6% to EUR 10.5 billion in Q1. Our growth was supported by three main drivers, Dupixent, our recent launches, and recent acquisitions as well. On a like-for-like basis, group sales increased by 12%. At constant exchange rates, both gross profit and margins were up, supported by favorable product mix and continued operational efficiencies. Operating expenses increased by 7%. This was driven by increased SG&A spend due to 2025 BD and M&A activity, including Blueprint and Dynavax, as well as some one-off items. As a percentage of sales, OpEx came down by 1.9 percentage points, showing the ongoing impact of our efficiency programs.

Speaker #1: On the like-for-like basis, Group Sales increased by 12%. At constant exchange rates, both gross profit and margins were up, supported by favorable product mix and continued operational efficiencies.

Speaker #1: Operating expenses increased by 7%. This was driven by increased SG&A spend due to 2025 BD and M&A activity, including Blueprint and Dinovac, as well as some one-off items.

Speaker #3: On a like-for-like basis, group sales increased by 12%. At constant exchange rates, both gross profit and margins were up, supported by favorable product mix and continued operational efficiencies.

Speaker #1: As a percentage of sales, OPEX came down by 1.9 percentage points, showing the ongoing impact of our efficiency programs. BOI was up by 10.9%, and BOI margin was slightly down due to higher profit sharing and the phasing of capital gains, which were approximately 230 million euros last year, versus only 40 million euros this year.

Speaker #3: Operating expenses increased by 7%. This was driven by increased SG&A spend due to 2025 BD and M&A activity, including Blueprint and Dynavax, as well as some one-off items.

Speaker #3: As a percentage of sales, OPEX came down by 1.9 percentage points, showing the ongoing impact of our efficiency programs. BOI was up by 10.9%, and BOI margin was slightly down due to higher profit sharing and the phasing of capital gains, which were approximately €230 million last year, versus only €40 million this year.

François-Xavier Roger: BOI was up by 10.9%, and BOI margin was slightly down due to higher profit sharing and the phasing of capital gains, which were approximately EUR 230 million last year, versus only EUR 40 million this year. Our tax rate was in line with the rate of Q1 2025, with a similar additional French corporate income tax contribution in both years. Finally, business EPS grew strongly at 14%, driven by operational leverage. Turning to our 2026 outlook on slide 14, we confirm our guidance of high single-digit sales growth at constant exchange rates, with business EPS expected to grow slightly faster than sales. Please note that we have a tougher comparison base in H2 with Dupixent's new indication launches and the consolidation of EvaKit, which started in July 2025. We now expect approximately EUR 400 million of capital gains from divestment in 2026.

Speaker #1: Our tax rate was in line with the rate of the first quarter of 2025, with a similar additional French corporate income tax contribution in both years.

Speaker #1: Finally, business EPS grew strongly at 14%, driven by operational leverage. Turning to our 2026 outlook on slide 14, we confirm our guidance of high single-digit sales growth at constant exchange rates, with business EPS expected to grow slightly faster than sales.

Speaker #3: Our tax rate was in line with the rate of the first quarter of 2025, with a similar additional French corporate income tax contribution in both years.

Speaker #3: Finally, business EPS grew strongly at 14%, driven by operational leverage. Turning to our 2026 outlook, on slide 14, we confirm our guidance of high single-digit sales growth at constant exchange rates, with business EPS expected to grow slightly faster than sales.

Speaker #1: Please note that we have a tougher comparison base in H2, with Dupixent's new indication launches and the consolidation of EVAKIT, which started in July 2025.

Speaker #1: We now expect approximately 400 million euros of capital gains from divestments in 2026. In March, we signed an agreement to divest Medley, our Brazilian generics business, under very favorable market conditions.

Speaker #3: Please note that we have a tougher comparison base in H2, with Dupixent's new indication launches and the consolidation of EVAKIT, which started in July 2025.

Speaker #3: We now expect approximately €400 million of capital gains from divestment in 2026. In March, we signed an agreement to divest Medley, our Brazilian generics business, under very favorable market conditions.

Speaker #1: This incoming disposal will be booked below BOI, and is subject to antitrust approvals. We expect to close this transaction at the earliest around the end of 2026.

François-Xavier Roger: In March, we signed an agreement to divest Medley, our Brazilian generics business, under very favorable market conditions. This incoming disposal will be booked below BOI and is subject to antitrust approvals. We expect to close this transaction at the earliest around the end of 2026. Profit sharing will continue to grow faster than Dupixent sales, and financial expenses are expected to increase this year with higher debt level from BD and M&A activities last year, on potentially further deals this year. Finally, I'm pleased to confirm that we will complete our EUR 1 billion share buyback program in the coming days. I will now hand over to Houman for an update on our pipeline.

Speaker #1: Profit sharing will continue to grow faster than Dupixent sales, and financial expenses are expected to increase this year with higher debt levels from BD and M&A activities, last year on potentially further deals this year.

Speaker #3: This incoming disposal will be booked below BOI and is subject to antitrust approvals. We expect to close this transaction at the earliest around the end of 2026.

Speaker #1: Finally, I'm pleased to confirm that we will complete our $1 billion share buyback program in the coming days. I will now hand over to Ouman for an update on our pipeline.

Speaker #3: Profit sharing will continue to grow faster than Dupixent sales, and financial expenses are expected to increase this year with higher debt levels from BD and M&A activities last year, on potentially further deals this year.

Speaker #2: Thank you, François. The first quarter demonstrated continued momentum across our portfolio. Let me walk you through some of the key highlights. Dupixent received multiple label expansions in the EU for chronic spontaneous urticaria, children, in Japan for bullet pemphigoid, and in the US for allergic fungal rhinosinusitis.

Speaker #3: Finally, I'm pleased to confirm that we will complete our $1 billion share buyback program in the coming days. I will now hand over to Houman for an update on our pipeline.

Speaker #2: Thank you, François. The first quarter demonstrated continued momentum across our portfolio. Let me walk you through some of the key highlights. Dupixent received multiple label expansions in the EU for chronic spontaneous urticaria in children, in Japan for bullous pemphigoid, and in the US for allergic fungal rhinosinusitis.

Houman Ashrafian: Thank you, François. Q1 demonstrated continued momentum across our portfolio. Let me walk you through some of the key highlights. Dupixent received multiple label expansions in the EU for chronic spontaneous urticaria children, in Japan for bullous pemphigoid, and in the US for allergic fungal rhinosinusitis, further advancing our commitment to reach more patients through new indications. We also obtained EU approval for Rezurock in third-line chronic graft versus host disease, marking an important milestone for patients with limited treatment options. We are pleased with the US label expansion to Tzield to delay the onset of Stage 3 type 1 diabetes in children as early as 1 year of age that we received just yesterday.

Speaker #2: Further advancing our commitment to reach more patients through new indications. We also obtained EU approval for Resoroc in third line chronic graft versus host disease, marking an important milestone for patients with limited treatment options.

Speaker #2: And finally, we're pleased with the US label expansion to TCL to delay the onset of stage 3 type 1 diabetes in children as early as one year of age that were received just yesterday.

Speaker #2: Further advancing our commitment to reach more patients through new indications, we also obtained EU approval for Resoroc in third-line chronic graft-versus-host disease, marking an important milestone for patients with limited treatment options.

Speaker #2: We reported a positive phase 2 result for Vengalastat, where the primary endpoint was achieved in type 3 Gaucher's disease, rare disease while the phase 3 study in Fabris disease did not meet its primary endpoint.

Speaker #2: And finally, we're pleased with the US label expansion to Tzield to delay the onset of stage 3 type 1 diabetes in children as early as one year of age that we received just yesterday.

Speaker #2: We initiated new phase 3 study for Frepsalamab in kidney transplantation, expanding the CD40 ligand mechanism of action in transplant biology. On the regulatory front, WayReels received orphan designation in Japan for Weiha and IgG4-related disease, along with breakthrough designation in the US.

Speaker #2: We reported a positive Phase 2 result for Vengalastat, where the primary endpoint was achieved in Type 3 Gaucher's disease, a rare disease, while the Phase 3 study in Fabry's disease did not meet the primary endpoint.

Houman Ashrafian: We reported a positive phase 2 result for Venglustat, where the primary endpoint was achieved in type 3 Gaucher disease, a rare disease, while the phase 3 study on Fabry disease did not meet its primary endpoint. We initiated new phase 3 studies for Frexalimab in kidney transplantation, expanding the CD40 ligand mechanism of action in transplant biology. On the regulatory front, Wayrilz received orphan designation in Japan for AIHA and IgG4-related disease, along with breakthrough designation in the US. Venglustat was also granted breakthrough therapy in the US for type 3 Gaucher disease. After a solid start to the year, now let's explore each of these areas in more detail. Starting with dermatology, where we presented the Amlitelimab data at the recent AAD medical meeting.

Speaker #2: We initiated new Phase 3 studies for Frexalimab in kidney transplantation, expanding the CD40 ligand mechanism of action in transplant biology. On the regulatory front, Wayreals received orphan designation in Japan for Weiha and IgG4-related disease, along with breakthrough designation in the US.

Speaker #2: Vengalastat was also granted breakthrough therapy in the US for type 3 Gaucher's disease. After a solid start to the year, now let's explore each of these areas in more detail.

Speaker #2: Starting with dermatology, where we presented the Amlodipine data and the recent AAD medical meeting. Across all three pivotal studies, case 1, case 2, and Sure, and across both primary endpoints IgA and EZ, Amlodipine showed continuous improvement for both every four and 12-week dosing schedules versus placebo, through week 24 with no evidence of plateau.

Speaker #2: Vengalastat was also granted breakthrough therapy in the US for type 3 Gaucher's disease. After a solid start to the year, now let's explore each of these areas in more detail.

Speaker #2: Starting with dermatology, where we presented the amlitelimab data and the recent AAD medical meeting. Across all three pivotal studies—CASE 1, CASE 2, and SURE—and across both primary endpoints, IgN and EZ, amlitelimab showed continuous improvement for both every-four- and 12-week dosing schedules versus placebo, through week 24, with no evidence of plateau.

Houman Ashrafian: Across all three pivotal studies, KATE 1, KATE 2, and SURVEY, and across both primary endpoints, IGA and EASI, Amlitelimab showed continuous improvement for both every 4- and 12-week dosing schedules versus placebo through week 24, with no evidence of plateau. This was further supported by the ATLANTIS Phase 2 results through week 52. In addition, itch reduction was similar across both dosing schedules, enabling the potential of very infrequent dosing. On safety, Amlitelimab was well-tolerated, with low rates of conjunctivitis, paresthesia, chills, and headache that were observed with other molecules. No cases of Kaposi's sarcoma were observed in these Phase 3 studies. However, as reported, there was one observed in ATLANTIS, the Phase 2 study, and one observed in the ESTUARY Phase 3 expansion study. These cases are both cutaneous in nature, and both patients are recovering after discontinuation of treatment.

Speaker #2: There was further this was further supported by the Atlantis phase 2 results through week 52. In addition, each reduction with similar across both dosing schedules enabling the potential of very infrequent dosing.

Speaker #2: On safety, Amlodipine was well tolerated, with low rates of conjunctivitis, paroxysm, and chills and headache. There were observed with other molecules. No cases of Kaposi sarcoma were observed in these phase 3 studies, however, as reported, there was one observed in Atlantis, the phase 2 study, and one observed in the S3 phase 3 extension study.

Speaker #2: This was further supported by the Atlantis phase 2 results through week 52. In addition, each production was similar across both dosing schedules, enabling the potential of very infrequent dosing.

Speaker #2: On safety, amlitalimab was well tolerated, with low rates of conjunctivitis, paroxysmal chills, and headache. These were observed with other molecules. No cases of Kaposi’s sarcoma were observed in these phase 3 studies. However, as reported, there was one observed in ATLANTIS, the phase 2 study, and one observed in the S3 phase 3 extension study.

Speaker #2: These cases are both cutaneous in nature and both patients are recovering after discontinuation of treatment. In general, overall rates of malignancy were similar to placebo.

Speaker #2: We look forward to share more data from the S3 phase 3 extension study as we approach the regulatory submission anticipated at some point in H2 2026.

Speaker #2: These cases are both cutaneous in nature, and both patients are recovering after discontinuation of treatment. In general, there were rates of malignancy similar to placebo.

Speaker #2: An atopic dermatitis, we plan to prioritize efforts on Amlodipine and our first STAT6 inhibitor that recently entered phase 1 with our partner Recludence. Now moving to our respiratory portfolio on slide 18, we are building a differentiated and innovative pipeline and have made further progress this quarter.

Houman Ashrafian: In general, overall rates of malignancy were similar to placebo. We look forward to share more data from the ESTUARY Phase 3 extension study as we approach the regulatory submission anticipated at some point in H2 2026. In atopic dermatitis, we plan to prioritize efforts on amlitelimab and our first STAT6 inhibitor that recently entered Phase 1 with our partner, Rexahn. Now moving to our respiratory portfolio on slide 18. We are building a differentiated and innovative pipeline and have made further progress this quarter. We reported top-line results of lunsekimab, our anti-IL-13 TSLP bispecific when used on top of background inhaled therapies in two distinct key indications.

Speaker #2: We look forward to sharing more data from the S3 phase 3 extension study as we approach the regulatory submission anticipated at some point in H2 2026.

Speaker #2: In atopic dermatitis, we plan to prioritize efforts on Amlitalimab and our first STAT6 inhibitor, which recently entered Phase 1 with our partner Recludence. Now, moving to our respiratory portfolio on slide 18, we are building a differentiated and innovative pipeline that has made further progress this quarter.

Speaker #2: We reported top-line results of Lansecamib, our anti-IL-13 TSLP bispecific, when used on top of background inhaled therapies. In two distinct key indications. In moderate to severe asthma, the Hercules phase 2 study demonstrated statistically significant and clinically meaningful reduction in exacerbations, regardless of biomarker status over 48 weeks, and similarly a significant statistically significant and clinically relevant improvement in lung function as measured by pre-bronchodilator FEV1.

Speaker #2: We reported top-line results of Lansecamib, our anti-IL-13 TSLP bispecific, when used on top of background inhaled therapies, in two distinct key indications. In moderate to severe asthma, the Hercules Phase 2 study demonstrated statistically significant and clinically meaningful reduction in exacerbations, regardless of biomarker status, over 48 weeks, and similarly a statistically significant and clinically relevant improvement in lung function as measured by pre-bronchodilator FEV1.

Houman Ashrafian: In moderate to severe asthma, the HERCULES phase 2 study demonstrated statistically significant and clinically meaningful reduction in exacerbations regardless of biomarker status over 48 weeks, and similarly, a statistically significant and clinically relevant improvement in lung function as measured by pre-bronchodilator FEV1, also at 48 weeks. The ongoing AIRLYMPUS phase 2 study will further expand the use in patients with high-risk asthma and suffering from high exacerbation rates despite symptom control. In inadequately controlled chronic rhinosinusitis with nasal polyps, the DUET phase 2 study of Lunsikimab demonstrated statistically significant and clinically meaningful changes also in nasal polyp score, patient-reported nasal congestion and obstruction, and the Lund-Mackay CT score at week 24. Both studies showed acceptable safety profile. We are pleased with Lunsikimab's results in asthma and chronic rhinosinusitis with nasal polyps and look forward to discussing phase 3 studies soon.

Speaker #2: Also at 48 weeks. The ongoing Air Limpus phase 2 study will further expand the use in patients with high-risk asthma and suffering from high exacerbation rates despite symptom control.

Speaker #2: In inadequately controlled chronic sinus chronic rhinosinusitis with nasal polyps, the Duet phase 2 study of Lansecamib demonstrated statistically significant and clinically meaningful changes also in nasal polyp score, patient-reported nasal congestion and obstruction, and the Lund-McKay CT score at week 24.

Speaker #2: Also at 48 weeks, the ongoing AIR LIMPUS Phase 2 study will further expand the use in patients with high-risk asthma and those suffering from high exacerbation rates despite symptom control.

Speaker #2: In inadequately controlled chronic rhinosinusitis with nasal polyps, the Duet phase 2 study of Lansecamib demonstrated statistically significant and clinically meaningful changes also in nasal polyp score, patient-reported nasal congestion and obstruction, and the Lund-McKay CT score at week 24.

Speaker #2: Both studies showed acceptable safety profile. We are pleased with Lansecamib's results in asthma and chronic rhinosinusitis with nasal polyps and look forward to discussing phase 3 studies soon.

Speaker #2: The results are encouraging and we look forward to Lansecamib's ongoing Persephone and Theseus replicated phase 2/3 studies in inadequately controlled COPD patients with an eosinophilic phenotype.

Speaker #2: Both studies showed acceptable safety profiles. We are pleased with Lansecamib's results in asthma and chronic rhinosinusitis with nasal polyps, and look forward to discussing phase 3 studies soon.

Speaker #2: Recall our December late-stage pipeline review, we made the decision to prioritize medicines to specific indications where the mechanisms may work best. Amlodipine received prioritized in asthma to focus resources on the most promising opportunities.

Speaker #2: The results are encouraging, and we look forward to Lansecamib's ongoing Persephone and Theseus replicated phase 2/3 studies in inadequately controlled COPD patients with an eosinophilic phenotype.

Houman Ashrafian: The results are encouraging, and we look forward to Lunsekimab's ongoing Persephone and THESEUS replicate phase 2/3 studies in inadequately controlled COPD patients with an eosinophilic phenotype. Recall our December late-stage pipeline review. We made the decision to prioritize medicines to specific indications where the mechanisms may work best. Amlitelimab will be prioritized in asthma to focus resources on the most promising opportunities. As for Itepekimab, the SURROUND 1 and 2 Phase 3 studies in chronic rhinosinusitis with nasal polyps are ongoing, with readouts anticipated next year. In COPD, we're in discussions with the regulatory authorities and with our partner, Regeneron, on a potential Phase 3 study. There is no final decision made yet, and it will be subject to overall portfolio prioritization. Overall, our portfolio is advancing, and Lunsekimab is emerging as a potentially important medicine across multiple respiratory indications.

Speaker #2: Recall our December late-stage pipeline review. We made the decision to prioritize medicines to specific indications where the mechanisms may work best. Amlitelimab received prioritization in asthma to focus resources on the most promising opportunities.

Speaker #2: As for Tepekamab, the Soran 1 and 2 phase 3 studies in chronic rhinosinusitis with nasal polyps are ongoing with readouts anticipated next year. In COPD, we're in discussions with the regulatory authorities and with our partner Regeneron and the potential phase 3 study.

Speaker #2: As for Tepekamab, the SORAN 1 and 2 phase 3 studies in chronic rhinosinusitis with nasal polyps are ongoing, with readouts anticipated next year.

Speaker #2: There was no final decision made yet and it will be subject to overall portfolio prioritization. Overall, our portfolio is advancing and Lansecamib is emerging as a potentially important medicine across multiple respiratory indications.

Speaker #2: In COPD, we're in discussions with the regulatory authorities and with our partner Regeneron regarding the potential Phase 3 study. There has been no final decision made yet, and it will be subject to overall portfolio prioritization.

Speaker #2: Turning now to slide 19, with a relieved new CCD phase 2 study following fortnightly 900 milligram induction fuvaticug achieved ulcerative colitis clinical remission placebo-adjusted rate of 27% and Crohn's disease endoscopic response placebo-adjusted rate of 35%.

Speaker #2: Overall, our portfolio is advancing, and Lansecamib is emerging as a potentially important medicine across multiple respiratory indications. Turning now to slide 19, with a relieved new CCD phase 2 study: following fortnightly 900 milligram induction, fuvaticug achieved ulcerative colitis clinical remission placebo-adjusted rate of 27%, and Crohn's disease endoscopic response placebo-adjusted rate of 35%.

Houman Ashrafian: Turning now to slide 19, with the RELIEVE UCCD Phase 2 study, following fortnightly 900 mg induction, Duvakitug achieved ulcerative colitis clinical remission placebo-adjusted rate of 27%, and Crohn's disease endoscopic response placebo-adjusted rate of 35%. During monthly maintenance in induction responder patients, Duvakitug demonstrated UC clinical remission rates of 58% and CD endoscopic response rates of 55%. The maintenance response suggests robust, sustained efficacy with a convenient monthly subcutaneous dosing. Consistent benefits were observed across clinical, endoscopic, and patient-reported endpoints, and the safety profile was well-tolerated and consistent with the induction study. These data support our ongoing Phase 3 programs and potential life cycle management.

Speaker #2: During monthly maintenance, an induction responder patient fuvaticug demonstrated UC clinical remission rates of 58% and CD endoscopic response rates of 55%. The maintenance response suggests robust, sustained efficacy with a convenient monthly subcutaneous dosing.

Speaker #2: Consistent benefits were observed across clinical, endoscopic, and patient-reported endpoints. And the safety profile was well tolerated and consistent with the induction study. These data support our ongoing phase 3 programs and potential lifecycle management.

Speaker #2: Then on business development, we've added two molecules to potential use in chronic versus host disease, and other immune indication. Rovacicitinib, a jack rock inhibitor from Sinobiopharm, is already approved in China for first-line myofibrosis, which fits with our focus on rare blood diseases with an ongoing phase 3 study in third-line graft versus host disease.

Speaker #2: Consistent benefits were observed across clinical, endoscopic, and patient-reported endpoints. The safety profile was well tolerated and consistent with the induction study. These data support our ongoing Phase 3 programs and potential lifecycle management.

Speaker #2: Then on business development, we've added two molecules for potential use in chronic graft versus host disease and other immune indications. Rovecitinib, a JAK-ROCK inhibitor from Sinobiopharm, is already approved in China for first-line myelofibrosis, which fits with our focus on rare blood diseases, with an ongoing Phase 3 study in third-line graft versus host disease.

Houman Ashrafian: On business development, we've added two molecules to potential use in graft versus host disease and other immune indications. Rovadicitinib, a JAK/ROCK inhibitor from Sino Biopharmaceutical, is already approved in China for first-line myelofibrosis, which fits with our focus on rare blood diseases with an ongoing phase 3 study in third-line graft versus host disease. Sanofi is responsible for the phase 2 development second-line, extending our presence alongside Rezurock. From Kali Therapeutics, we licensed in the CD19 BCMA CD3 T-cell engager currently in phase 1 in immune-mediated disease, with Sanofi responsible for the phase 2 development. These additions reflect our focused approach to business development in the areas of high unmet medical need within our strategic scope. Now pivoting to slide 20 with rare diseases, which remains a core pillar of our strategy with historic presence across lysosomal storage diseases and a deep commitment to our patients.

Speaker #2: Sanofi is responsible for the phase 2 development, second-line extending our presence alongside Resoroc. From Carly Therapeutics, we licensed in the CD19 BCMA CD3 T-cell engager, currently in phase 1 in immune-mediated disease with Sanofi responsible for the phase 2 development.

Speaker #2: Sanofi is responsible for the Phase 2 development in second-line, extending our presence alongside Resoroc. From CALI Therapeutics, we licensed in the CD19 BCMA CD3 T-cell engager, currently in Phase 1 in immune-mediated disease, with Sanofi responsible for the Phase 2 development.

Speaker #2: These additions reflect our focused approach to business development in areas of high unmet medical need within our strategic scope. Now pivoting to slide 20 with rare diseases, which remains a core pillar of our strategy with historic presence across lysosomal storage diseases and a deep commitment to our patients.

Speaker #2: These additions reflect our focused approach to business development in areas of high unmet medical need within our strategic scope. Now, pivoting to slide 20 with rare diseases, which remains a core pillar of our strategy, with a historic presence across lysosomal storage diseases and a deep commitment to our patients.

Speaker #2: As previously mentioned, venlostatin in its primary endpoint in the LEAP2 monophase 3 study in type 3 Gaucher's disease representing a significant milestone for patients with this debilitating neurological form of the disease and could potentially augment our established medicine serosimus sadalga.

Speaker #2: As previously mentioned, Venlostatin met its primary endpoint in the LEAP2 mono Phase 3 study in Type 3 Gaucher's disease, representing a significant milestone for patients with a debilitating neurological form of the disease and can potentially augment our established medicine, Serosimus Sadalga.

Houman Ashrafian: As previously mentioned, venglustat met its primary endpoint in the LEAP-2 monotherapy Phase 3 study in type 3 Gaucher disease, representing a significant milestone for patients with this debilitating neurological form of the disease, and it can potentially augment our established medicines, Cerezyme and Cerdelga. It was also designated US breakthrough therapy, which was announced recently. In Fabry disease, the PERIDOT Phase 3 study did not meet its primary endpoint. The CARRA Phase 2 study is ongoing as we evaluate the path forward in Fabry. Across acid sphingomyelinase deficiency or Niemann-Pick disease type 1, mucopolysaccharidosis, and Pompe disease, our established portfolio reflects our long-term commitment to patients with these rare diseases. On slide 21, now let me share an update on the key mid- and late-stage pipeline developments using this slide from our December late-stage pipeline review.

Speaker #2: It was also designated US breakthrough therapy, which was announced recently. In Fabry's disease, the peridot phase 3 study did not meet its primary endpoint.

Speaker #2: The Carat phase 3 study is ongoing as we have evaluated the path forward in Fabry's. Across acid sphingomyelinase deficiency or pneumopic disease type 1 mucopolysaccharidoses and Pompe's disease, our established portfolio reflects our long-term commitment to patients with these aids.

Speaker #2: It was also designated as a US breakthrough therapy, which was announced recently. In Fabry's disease, the Peridot Phase 3 study did not meet its primary endpoint.

Speaker #2: The Carat phase 3 study is ongoing as we have evaluated the path forward in Fabry's. Across ASIDs, acid sphingomyelinase deficiency, or Niemann-Pick disease type 1, mucopolysaccharidosis, and Pompe's disease, our established portfolio reflects our long-term commitment to patients with these medicines.

Speaker #2: On slide 21, now let me share an update on the key mid and late-stage pipeline developments by using this slide from our December late-stage pipeline review.

Speaker #2: Our immunology pipeline is progressed by having delivered most of Amlodipine's phase 3 program in AV and by Lansecamib's positive results in asthma and CRS with MP.

Speaker #2: On slide 21, now let me share an update on the key mid- and late-stage pipeline developments by using this slide from our December late-stage pipeline review.

Speaker #2: In neurology, Dolabrutinib is still under review with the EU for SBMS for Salbab in phase 3 for RMS and SBMS, and we're really prove our in phase 3 for CIDP.

Houman Ashrafian: Our immunology pipeline has progressed by having delivered most of Amlitelimab's phase 3 program in AD and by Lunsekimab's positive results in asthma and CRSwNP. In neurology, Tolebrutinib is still under review with the EU for SPMS, Frexalimab in phase 3 for RMS and SPMS, and Riliprubart in phase 3 for CIDP, the latter two with data next year. In rare diseases and oncology, Wayriltz is advancing with its lifecycle management plan beyond IP and the designations discussed earlier, Venglustat for GD3 and Sarclisa expanding with a subcutaneous formulation, with recent positive EU recommendations. Our vaccine portfolio awaits future data across pneumococcal disease and other opportunities. Finally, on slide 22, let me cover the expected 2026 and 2027 key news flows. For the remainder of this year, we expect the last phase 3 for Amlitelimab in AD required for regulatory submission.

Speaker #2: Our immunology pipeline has progressed by having delivered most of Amlitelimab's Phase 3 program in AV, and by Lansecamab's positive results in asthma and CRS with MP.

Speaker #2: The latter two with data next year. In rare diseases in oncology, Weirills is advancing with its lifecycle management plan beyond ITP and the designations discussed earlier.

Speaker #2: In neurology, dolabrutinib is still under review with the EU for SBMS, for Salbab in phase 3 for RMS and SBMS, and we're really pujrov in phase 3 for CIDP.

Speaker #2: Venlostat for GD3 and sarcolysis expanding with a subcutaneous formulation with recent positive EU recommendations. Our vaccines portfolio awaits future data across pneumococcal disease and other opportunities.

Speaker #2: The latter two, with data next year. In rare diseases in oncology, we are advancing Weirills with its lifecycle management plan beyond ITP and the designations discussed earlier.

Speaker #2: Finally, on slide 22, let me cover the expected 26 and 27 key news flows for the remainder of this year. We expect the last phase 3 for Amlodipine in AV required for regulatory submission.

Speaker #2: Venlostatin for GD3 and sarcolysis is expanding with a subcutaneous formulation, with recent positive EU recommendations. Our vaccines portfolio awaits future data across pneumococcal disease and other opportunities.

Speaker #2: We also anticipate multiple regulatory submissions based on data we already received last and this year as regulatory decisions for medicines and vaccines under review.

Speaker #2: Finally, on slide 22, let me cover the expected '26 and '27 key news flows for the remainder of this year. We expect the last Phase 3 for amlitelimab in AV required for regulatory submission.

Speaker #2: Next year, we'll get the 2B data for Brovecamib and HS, followed by phase 3 studies of Frexalamab in RMS and really prove our CIDP.

Speaker #2: We also anticipate multiple regulatory submissions based on data we already received last and this year, as regulatory decisions for medicines and vaccines under review.

Houman Ashrafian: We also anticipate multiple regulatory submissions based on data we already received last year and this year, as well as regulatory decisions for medicines and vaccines under review. Next year, we'll get the 2b data for brivekimig in HS, followed by phase 3 studies of Frexalimab in RMS and Riliprubart in CIDP. My sincere thanks to all Sanofi R&D colleagues and, more broadly, Sanofi colleagues who share my commitment to advance science in Sanofi, improve our pipeline from research and regulatory approval, and create new medicines for patients who need them. With this, I hand back to Olivier for Q&A.

Speaker #2: My sincere thanks to all Sanofi R&D colleagues and more broadly Sanofi colleagues who share my commitment to advance science in Sanofi, improve our pipeline from research to regulatory approval, and create new medicines for patients who need them.

Speaker #2: Next year, we'll get the Phase 2b data for Brovecamib and HS, followed by Phase 3 studies of Frexalimab in RMS, and really prove our CIDP.

Speaker #2: With this, I hand back to Olivier for Q&A.

Speaker #2: My sincere thanks to all Sanofi R&D colleagues, and more broadly, Sanofi colleagues who share my commitment to advance science in Sanofi, improve our pipeline from research to regulatory approval, and create new medicines for patients who need them.

Speaker #1: Thank you, Ouman. We'll now open the call to your questions. As a reminder, we would ask you to limit your question to one or two each.

Speaker #1: You will be notified when your line is open to ask your question. At that time, please make sure that you unmute your microphone or option two submit your question by clicking the Q&A icon at the bottom of the screen.

Speaker #2: With this, I hand back to Olivier for Q&A.

Speaker #1: Thank you, Oman. We'll now open the call to your questions. As a reminder, we would ask you to limit your question to one or two each.

Olivier Charmeil: Thank you, Houman. We now open the call to your questions. As a reminder, we would ask you to limit your question to one or two each. You will be notified when your line is open to ask your question. At that time, please make sure that 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. Now we will take the first question.

Speaker #1: Your question will be read by our panelists. Now we will take the first question.

Speaker #1: You will be notified when your line is open to ask your question. At that time, please make sure that you unmute your microphone, or, option two, submit your question by clicking the Q&A icon at the bottom of the screen.

Speaker #3: The first question is from James Gordon from Barclays.

Speaker #1: James

Speaker #2: Hello . James Gordon for Barclays . Thanks for taking the question . One question was on monthly depictions . I've seen clinical studies to start in H2 , but can you clarify what are you going to co-formulate DP with in AD ?

Speaker #1: Your question will be read by our panelists. Now we will take the first question.

[Company Representative] (Sanofi): The first question is from James Gordon from Barclays. James?

Speaker #3: The first question is from James Gordon from Barclays. James?

Speaker #2: And what would the development pathway and timelines look like ? And when could this come to market ? And would it be quicker for asthma versus ad That's the first question .

James Gordon: Hello, James Gordon from Barclays. Thanks for taking the question. One question was on monthly Dupixent. I've seen clinical studies to start in H2, but can you clarify what are you going to co-formulate with an AD, and what would the development pathway and timelines look like, and when could this come to market? Would it be quicker for asthma versus AD? That's the first question, please. The second question would be for Lunsikimab. The phase 2 headlines look very encouraging. Your TSLP/IL-13 in asthma. Are you confident you've demonstrated a materially stronger profile than existing TSLP monotherapies such as Tezspire already on the market? Would you develop this against, like with a study against Tezspire or just against placebo? Is this a much better product or really just another TSLP?

Speaker #4: Hello, James Gordon from Barclays. Thanks for taking the question. One question was on monthly Dupixents. I've seen clinical studies to start in H2, but can you clarify what you are going to co-formulate Dupixent with in AD, and what the development pathway and timelines look like?

Speaker #2: Please . And then the second question would be for the second . So the the phase two headlines look very encouraging . So your T slip out of 13 in asthma .

Speaker #2: But but are you confident you've demonstrated a materially stronger profile than existing T slip monotherapies such as Tezspire that are already on the market .

Speaker #4: It won't get this come to market. And would it be quicker for asthma versus AD? That's the first question, please. And then the second question would be for Lunasecamib, so the phase 2 headlines look very encouraging, so your T-slip IL-13 in asthma.

Speaker #2: Would you develop this against with a study against Tezspire or just against placebo ? So is this a much better product or really just another T slip ?

Speaker #4: But are you confident you’ve demonstrated a materially stronger profile than existing T-slip monotherapies, such as Tesbarda, already on the market? Would you develop this with a study against Tesbarda or just against placebo?

Speaker #3: Yeah . So maybe James , and thank you for your question . And maybe we start by the first question on Dupixent ad .

Speaker #3: Manuela

Speaker #1: Yeah . So I would ask a woman also

Speaker #4: So is this a much better product or really T-slip?

Speaker #1: Yeah, so maybe James, and thank you for your question. And maybe we start with the first question on Dupixent AD, Manuela.

Olivier Charmeil: Yeah. Maybe, James, and thank you for your question, and maybe we start by the first question on Dupixent AD, Manuela.

Speaker #3: Yeah, so I would ask Houman also to complement here. So first of all, your question was on the LCM profile of Dupixent. And we are evaluating strategic options, a broad set of strategic options, as Olivier reiterated in his remarks.

[Company Representative] (Sanofi): Yeah. I would ask Houman also to complement here. First of all, your question was on the LCM profile of Dupixent. We are evaluating a broad set of strategic options as Olivier reiterated in his remarks. One is on IP, the other part is on formulations. Houman will talk a little bit about the formulations, but there are broader options for Dupixent that we're looking at and that we're considering, including co-formulation, including higher doses with the Q4W dosing to basically provide more options for patients and also elevate and enhance the patient experience. Houman, maybe over to you.

Manuela Buxo: Yeah. I would ask Houman also to complement here. First of all, your question was on the LCM profile of Dupixent. We are evaluating a broad set of strategic options as Olivier reiterated in his remarks. One is on IP, the other part is on formulations. Houman will talk a little bit about the formulations, but there are broader options for Dupixent that we're looking at and that we're considering, including co-formulation, including higher doses with the Q4W dosing to basically provide more options for patients and also elevate and enhance the patient experience. Houman, maybe over to you.

Speaker #3: One is on IP. The other part is on formulations. Houman will talk a little bit about the formulations. But there are broader options for Dupixent that we're looking at and that we're considering, including co-formulation and higher doses with a Q4W dosing to basically provide more options for patients and also elevate and enhance the patient experience.

Speaker #4: That alongside our partner Regeneron going forward , importantly , with a formulation , we anticipate going relatively broadly , the formulation has been well worked out and will be germane .

Speaker #3: Houman, may be over to you.

Speaker #4: Yeah, Manuela, thank you for that. Very quickly, James, I think just to be super clear, with a high date, we're going into asthma. The development plan for that will be relatively conventional, and we'll give you more details on that alongside our partner, Regeneron, going forward.

Houman Ashrafian: Yeah, Manuela, thank you for that. Very quickly, James, I think just to be super clear, with the high data we're getting into asthma, the development plan for that will be relatively conventional, and we'll give you more details of that alongside our partner, Regeneron, going forward. Importantly, with a formulation we anticipate going relatively broadly. The formulation's been well worked out and will be germane and pertinent to many relevant atopic, sorry, Dupixent indications. The clinical developments of those are just being worked out.

Speaker #4: And pertinent to many relevant atopic . I'm sorry , Dupixent indications the clinical development for those are just being worked out .

Speaker #4: Importantly, with a formulation, we anticipate going relatively broadly. The formulation has been well worked out, and will be germane and pertinent to many relevant atopic—I'm sorry, Dupixent—indications.

Speaker #3: And the second question relates to the phase two results . Differentiated product .

Speaker #4: Yeah . So again stated rather simply , we're enthusiastic by the results as I've just called out in severe asthma and CRS with MP , both of which strongly type two disorders .

Speaker #4: The clinical development for those is just being worked out.

Speaker #1: And the second question, related to Lunasecamib—phase 2 result, differentiated product, Houman?

Olivier Charmeil: On the second question related to Lunsekimab Phase 2 result, differentiated product, Houman?

Speaker #4: And we've been excited by the results we've seen , albeit recognizing that this is these are early studies . Phase two studies , just to be very specific , as you ask the specific asthma study , I make three points .

Houman Ashrafian: Yeah. Again, stated rather simply, we're enthusiastic by the results, as I've just called out in severe asthma and CRSwNP, both of which are strongly Type 2 disorders, and we've been excited by the results we've seen, albeit recognizing that these are early studies, Phase 2b studies. Just to be very specific, as you asked a specific asthma study, I make three points. Number one is we comfortably hit our primary endpoint, both statistically and clinically, in all comers, as anticipated. Number two, speaking to differentiation, as called out, on FEV1 and PROs, we were specifically differentiated. Number three, further details of differentiation in the overall population, and in the relevant subgroups, will be presented at a medical meeting in the relatively near future.

Speaker #4: Yeah. So again, stated rather simply, we're enthusiastic about the results, as I've just called out, in severe asthma and CRS with NP, both of which are strongly type 2 disorders.

Speaker #4: Number one is we comfortably hit our primary endpoint by statistically and clinically in all comers as anticipated . Number two , speaking to differentiation as called out on FEV one and pros , we were specifically differentiated .

Speaker #4: And we've been excited by the results we've seen, albeit recognizing that these are early studies—Phase 2B studies. Just to be very specific, as you asked a specific asthma study, I make three points.

Speaker #4: Number one is we comfortably hit our primary endpoint, both statistically and, commas as anticipated. Number two, speaking to differentiation, as called out on FEV1 and PROs, we were specifically differentiated.

Speaker #4: Number three , further details of differentiation in the overall population and in the relevant subgroups will be presented at a medical meeting at a relatively near future .

Speaker #4: I just want to caveat that while we are excited about lung sarcoma in the trio of co diseases of asthma , COPD and CRS , with MP , you know , we remain thoughtful about how we go forward with these diseases as this was a relatively early study , but it does perform provide a foundation for our role in respiratory disease .

Speaker #4: Number three, further details of differentiation in the overall population and in the relevant subgroups will be presented at a medical meeting in the relatively near future.

Speaker #4: I just want to caveat that, while we are excited about Lunasecamib in the trial of codependent diseases of asthma, COPD, and CRS with MP, we remain thoughtful about how we go forward with these diseases, as this was a relatively early study.

Houman Ashrafian: I just want to caveat that while we are excited about lunsekimab in the trio of comorbid diseases of asthma, COPD, and CRSwNP, we're very thoughtful about how we go forward with these diseases as this is a relatively early study. It does provide a foundation for our role in respiratory disease.

Speaker #3: Yes . Question .

Speaker #5: Next question is from Florent Cespedes from Oddo , Florence

Speaker #6: Good afternoon everyone . Thank you very much for taking my questions . Florent Cespedes from BHF So two quick ones . First on Dupixent in Q1 .

Speaker #4: But it does perform and provide a foundation for our role in respiratory disease.

Speaker #1: Next question.

Olivier Charmeil: Next question.

[Company Representative] (Sanofi): Next question is from Florent Cespedes from Oddo BHF. Florent?

Speaker #3: Next question is from Florence Espedes from Odo. Florence?

Speaker #6: The drug was less impacted by pricing pressure in the U.S. maybe . Could you give us more color on why this happened and how do you see the Next discussions with the payers And my second question is to follow up on Mibb just like to know if you will wait for the phase two results on the high risk asthma next year before taking a decision .

Florent Cespedes: Good afternoon, everyone. Thank you very much for taking my questions. Florent Cespedes from Oddo BHF. Two quick ones. First, on Dupixent. In Q1, the drug was less impacted by pricing pressure in the US. Maybe could you give us more color on why this happened, and how do you see the next discussions with the payers? My second question is to follow up on Lunsekimab. I'd just like to know if you will wait for the phase 2 results on the high-risk asthma next year before taking a decision to launch a phase 3 program, or if you could decide in the near future for the next step for Lunsekimab. Thank you.

Speaker #5: Good afternoon. Hi, everyone. Thank you very much for taking my questions. Florence Espedes from Odo BHS. So, two quick ones. First, on Dupixent, in Q1, the drug was less impacted by pricing pressure in the US.

Speaker #5: Maybe could you give us more color on why this happened and how you see the next discussions with the players? And my second question is to follow up on Lunasecamib.

Speaker #6: A launch , a phase three program , or if you could decide in the near future for the next step for me , thank you .

Speaker #5: I'd just like to know if you will wait for the Phase 2 results on the high-risk asthma next year before taking a decision—a launch of the Phase 3 program—or if you could decide in the near future on the next step for Lunasecamib.

Speaker #3: So first question , Manuela , on price pressure on Q1 since .

Speaker #1: Thank you , Florence So first of all , we're very pleased with Dupixent's continued strong performance . The 31% of growth that we have shown in Q1 , which is largely driven by underlying demand , strong underlying demand across established indications , but also driven by strong uptake in recent launches .

Speaker #5: Thank you.

Olivier Charmeil: First question, Manuela, on price pressure on Q1.

Speaker #1: So, first question, Manuela, on price pressure in Q1.

[Company Representative] (Sanofi): Yes.

Manuela Buxo: Yes.

Olivier Charmeil: On Dupixent.

Speaker #3: Yeah, so thank you, Florence. So, first of all, we're very pleased with Dupixent's continued strong performance. The 31% growth that we have shown in Q1 is largely driven by underlying demand—strong underlying demand across established indications—but also driven by strong uptake in recent launches.

[Company Representative] (Sanofi): Thank you, Florent. First of all, we're very pleased with Dupixent's continued strong performance, the 31% of growth that we have shown in Q1, which is largely driven by underlying demand. Strong underlying demand across established indications, but also driven by strong uptake at recent launches. As you rightly pointed out, the Q1 performance partly reflects a low basis of comparison due to higher gross to net price adjustments in Q1 2025. Again, if you correct for that, the sales growth is largely driven by volume demand. You know that GTN fluctuates from quarter to quarter due to many different factors. Q1 in the US usually is highest because of the annual insurance benefit resetting.

Manuela Buxo: Thank you, Florent. First of all, we're very pleased with Dupixent's continued strong performance, the 31% of growth that we have shown in Q1, which is largely driven by underlying demand. Strong underlying demand across established indications, but also driven by strong uptake at recent launches. As you rightly pointed out, the Q1 performance partly reflects a low basis of comparison due to higher gross to net price adjustments in Q1 2025. Again, if you correct for that, the sales growth is largely driven by volume demand. You know that GTN fluctuates from quarter to quarter due to many different factors. Q1 in the US usually is highest because of the annual insurance benefit resetting.

Speaker #1: As you rightly pointed out , the Q1 performance partly reflects a low basis of comparison due to higher gross to net price adjustments in Q1 2025 , but again , if you correct for that , the sales growth is largely driven by volume demand .

Speaker #3: As you rightly pointed out, the Q1 performance partly reflects a low basis of comparison due to higher gross-to-net price adjustments in Q1 2025. But again, if you correct for that, the sales growth is largely driven by volume demand.

Speaker #1: You know that GTN fluctuates from quarter to quarter due to many different factors . Q1 in the US usually is highest because of the annual insurance benefit resetting .

Speaker #1: But to your question on pressure , we have a robust GTN strategy in place , which we continuously evolve to ensure long term profitable growth .

Speaker #3: You know that GTN fluctuates from quarter to quarter due to many different factors. Q1 in the US usually is highest because of the annual insurance benefit resetting.

Speaker #1: While maintaining a favorable favorable patient access for Dupixent . In general One thing to note , though , we expect a strong demand growth to continue But at the same time , we will .

[Company Representative] (Sanofi): To your question on payer pressure, we have a robust GTN strategy in place, which we continuously evolve to ensure long-term profitable growth while maintaining a favorable patient access for Dupixent in general. One thing to note, though, we expect the strong demand growth to continue. At the same time, we expect some moderation in the second half of the year, as recent launches will annualize.

Manuela Buxo: To your question on payer pressure, we have a robust GTN strategy in place, which we continuously evolve to ensure long-term profitable growth while maintaining a favorable patient access for Dupixent in general. One thing to note, though, we expect the strong demand growth to continue. At the same time, we expect some moderation in the second half of the year, as recent launches will annualize.

Speaker #3: But to your question on payer pressure, we have a robust GTN strategy in place, which we continuously evolve to ensure long-term profitable growth while maintaining favorable patient access for Dupixent in general.

Speaker #1: We expect some moderation in the second half of the year , as recent launches will annualize

Speaker #3: So going to the question on infliximab and the development strategy .

Speaker #3: One thing to note, though: we expect the strong demand growth to continue, but at the same time, we expect some moderation in the second half of the year.

Speaker #4: Yeah , very straightforwardly . Two bullet points . Number one is we do not anticipate waiting for the Olympus results before we move forward .

Speaker #4: Number two is progression to phase three will solely be subject to obviously internal portfolio decision making . But currently a regulatory conversation

Speaker #3: As recent launches will annualize.

Olivier Charmeil: Going to the question on Lunsekimab and the development strategy.

Speaker #1: So going to the question on Lunasecamib and the development strategy.

Houman Ashrafian: Yeah. Very straightforwardly, two bullet points. Number one is, we do not anticipate waiting for the OLYMPUS results before we move forward. Number two is, progression to Phase 3 will solely be subject to, obviously, internal decision-making, but currently a regulatory conversation.

Speaker #4: Yeah, very straightforwardly, two bullet points. Number one is, we do not anticipate waiting for the area results before we move forward. Number two is, progression to Phase 3 will solely be subject to, obviously, internal portfolio decision-making.

Speaker #5: Yes . Next question is from Luisa Hector from Berenberg Luisa .

Speaker #7: Hi there . Thanks for taking my question . I wanted to follow up on the longer acting Dupixent . Please . Could you comment on the actual technology ?

Speaker #4: But currently, a regulatory conversation.

[Company Representative] (Sanofi): Yes. Next question is from Luisa Hector from Berenberg. Luisa?

Speaker #3: Yes. Next question is from Louisa Hector from Berenberg. Louisa?

Speaker #7: Is this with a partner ? Are additional payor ways ? And can we assume the financials with Regeneron remain the same And perhaps just a question , could you stretch it even longer than every four weeks ?

Luisa Hector: Hi there. Thanks for taking my question. I wanted to follow up on the longer-acting Dupixent, please. Could you comment on the actual technology? Is this with a partner? Are there additional payaways? Can we assume the financials with Regeneron remain the same? Perhaps just a question, could you stretch it even longer than every four weeks? Second question. Olivier, great to have you on the call. Thank you. We've had you just for a few weeks as interim CEO, but obviously you have an impressive amount of experience at Sanofi, and you've made a contribution to the significant transformation over the past five years. The question for you is what advice might you give to Belen when she arrives in a week or so? Thank you.

Speaker #6: Hi there. Thanks for taking my question. I wanted to follow up on the longer-acting Dupixent, please. Could you comment on the actual technology? Is this with a partner?

Speaker #7: And then second question , Olivier , great to have you on the call . So thank you . And we we've had you just for a few weeks as interim CEO , but obviously , you have an impressive amount of experience at Sanofi and you've made a contribution to the significant transformation over the past five years .

Speaker #6: Are there additional payaways? And can we assume the financials with Regeneron remain the same? And perhaps just a question, could you stretch it even longer than every four weeks?

Speaker #6: And then, second question—Olivier, great to have you on the call, so thank you. We've had you just for a few weeks as interim CEO, but obviously, you have an impressive amount of experience at Sanofi.

Speaker #7: So the question for you is , what advice might you give to Berlin when she arrives in a week or so ? Thank you .

Speaker #3: So on the first question related to the longer acting Dupixent , I give it to

Speaker #6: And you've made a contribution to the significant transformation over the past five years. So, the question for you is: What advice might you give to Belen when she arrives in a week or so?

Speaker #4: Yeah , I'll be short because I we want to hear Olivier's response . The . Louisa , thank you for your thoughtful question .

Speaker #4: Yes , the technology's pretty straightforward . It is with a partner . It is precedented . And we see it being used in across the majority of Dupixent indications .

Speaker #6: Thank you.

Olivier Charmeil: On the first question related to the longer-acting Dupixent, I give it to Houman.

Speaker #1: So, on the first question related to the longer-acting Dupixent, I give it to Houman.

Houman Ashrafian: Yeah, I'll be short because we want to hear Olivier's response. Luisa, thank you for your thoughtful question. Yes, the technology's pretty straightforward. It is with a partner. It is precedented, and we see it being used across the majority of Dupixent indications. Olivier.

Speaker #4: Yeah, I'll be short because we want to hear Olivier's response. Louisa, thank you for your thoughtful question. Yes, the technology is pretty straightforward. It is with a partner.

Speaker #4: Olivia .

Speaker #3: So on the . Thank you for your question . Louisa . First , I'm very happy to work again with Of course . Berlin , with whom I have worked in the past and I know pretty well I would be very cautious in the advice that I would give her .

Speaker #4: It is precedented, and we see it being used across the majority of Dupixent indications. Olivier?

Olivier Charmeil: Thank you for your question, Luisa. First, I'm very happy to work again with Belen, with whom I have worked in the past and I know pretty well. I would be very cautious in the advice that I would give her. The first one is to take some time to make the right diagnostic. I think the company has considerably changed in the last 5 to 10 years. The way the company has modernized is, of course, very impressive. I think in the last few years, we have gained a lot in terms of better prioritization, internationalization of the company. We have also significantly increased our capabilities, notably in the US, in terms of marketing and commercial. Of course, it's going to be a period after the diagnostic where she needs, of course, to be decisive.

Speaker #1: Thank you for your question, Louisa. First, I’m very happy to work again with, of course, Belen, with whom I have worked in the past.

Speaker #3: But the first one is to take some time to make the right diagnostic . I think the company has considerably changed in the last 5 to 10 years .

Speaker #3: The way the company has modernized is , of course , very impressive . I think in the last few years , a lot of , you know , we have gained a lot in terms of better prioritization , internalization of the company .

Speaker #1: And I know pretty well. I would be very cautious in the advice that I would give her. But the first one is to take some time to make the right diagnostic.

Speaker #1: I think the company has considerably changed in the last five to ten years. The way the company has modernized is, of course, very impressive.

Speaker #3: We have also significantly increased our capabilities , notably in the US in terms of marketing and and commercial . Of course , it's going to be a period after the diagnostic where she needs to be decisive .

Speaker #1: I think in the last few years, a lot of us have gained a lot in terms of better prioritization and internalization of the company. We have also significantly increased our capabilities, notably in the US, in terms of marketing.

Speaker #3: And knowing her , I know that she will make the right choices . She will examine , of course , and review the portfolio .

Speaker #1: And commercial. Of course, it's going to be a period after the diagnostic where she needs to be decisive, and knowing her, I know that she will make the right choices.

Speaker #3: I can tell you that in order that she gets prepared , have prepared with my team a solid program so that she can , when she joins early may be up and running from day one .

Olivier Charmeil: Knowing her, I know that she will make the right choices. She will examine, of course, and review the portfolio. I can tell you that in order that she gets prepared, we have prepared with my team a solid program so that she can, when she joins early May, be up and running from day one. Clearly work on the topics that really matter for the future of Sanofi.

Speaker #1: She will examine, of course, and review the portfolio. I can tell you that, in order that she gets prepared, we have prepared with my team a solid program so that she can, when she joins early May, be up and running from day one and clearly work on the topics that really matter for the future of Sanofi.

Speaker #3: And clearly a work on the topics that really matter for the future of Sanofi

Speaker #5: Next question is from Steve Scala . From Videocon . Steve .

Speaker #8: Thank you so much I am just curious why a year ago , Sanofi wouldn't speak to you ? Picks and Eloi extension , but now includes slides in the deck .

[Company Representative] (Sanofi): Next question is from Steve Scala from TD Cowen. Steve.

Speaker #3: Next question is from Steve Kala from TDO Cohen. See you.

Speaker #8: It seems that there are are four possible reasons for this change The first is that Sanofi now has more confidence , and I'm wondering why Second , the outlook for the pipeline assets expected to form the next generation is unclear Third , the low is nearer or .

Steve Scala: Oh, thank you so much. I am just curious why a year ago Sanofi wouldn't speak to Dupixent LOE extension, but now includes slides in the deck. It seems that there are four possible reasons for this change. The first is that Sanofi now has more confidence, and I'm wondering why. Second, the outlook for the pipeline assets expected to form the next generation is unclear. Third, the LOE is nearer. Or fourth, a change in communication strategy may be related to the CEO change. In the absence of any other information, I think we have to assume it's the pipeline. I'm wondering if you would push back on that. Thank you.

Speaker #5: Well, thank you so much. I am just curious why a year ago, Sanofi wouldn't speak to Dupixent, Eloy, Extension, but now includes slides in the deck.

Speaker #5: It seems that there are four possible reasons for this change. The first is that Sanofi now has more confidence, and I'm wondering why. Second, the outlook for the pipeline assets expected to form the next generation is unclear.

Speaker #8: Fourth , a change in communication strategy may be related to the CEO change in the absence of any other information . I think we have to assume it's the pipeline .

Speaker #8: I'm wondering if you would push back on that . Thank you .

Speaker #5: Third, the Eloy is nearer. Or fourth, a change in communication strategy may be related to the CEO change. In the absence of any other information, I think we have to assume it's the pipeline.

Speaker #3: So we can start maybe on the the question that is related strictly to the low with our general counsel .

Speaker #9: Thanks for the question . We've always been consistently saying that we have a very strong portfolio and that we . To vigorously defend Dupixent and that we expect it to go beyond the compound in the years which is March 31st .

Speaker #5: I'm wondering if you would push back on that. Thank you.

Olivier Charmeil: We can start maybe on the question that is related strictly to the LOE with our general counsel.

Speaker #1: So, we can start maybe on the question that is related strictly to the Eloy, with our General Counsel.

Speaker #9: I think you see it on the slide for the first time , because you see some other things there regarding the future of the alliance .

[Company Representative] (Sanofi): Thanks for the question. We've always been consistently saying that we have a very strong patent portfolio and that we tend to vigorously defend Dupixent, and that we expect it to go beyond the compound patent years, which is March 31. I think you see it on a slide for the first time because you see some other things there regarding the future of the alliance, and it was just put in writing. We had the same question last quarter, and I answered it. François, on the slide, maybe.

Speaker #4: Thanks for the question. We've always been consistently saying that we have a very strong patented portfolio, and that we tend to vigorously defend Dupixent.

Speaker #9: And it was just put in writing . We had the same question last quarter , and I answered it . Francois , on the slide .

Speaker #4: And that we expect it to go beyond the compound pattern of the year, which is March 31. I think you see it on the slide for the first time, because you see some other things there regarding the future of the alliance.

Speaker #9: Maybe .

Speaker #3: Yes . No , Steve , I think that anyway , there is a logic that we talk about it because we get nearer to the yellow and we see that there is a very strong appetite from the investor community to understand what's coming after , after the Dupixent .

Speaker #4: And it was just put in writing. We had the same question last quarter. And I answered it, François, on the slide, maybe.

Olivier Charmeil: Yes. No, Steve, I think that anyways, there is a logic that we talk about it because we get nearer to the LOE, and we see that there is a very strong appetite from the investor community to understand what's coming after the LOE of Dupixent. It's a major product for us, so I think we see that there is an interest, and we need to answer to the investor community. This has been done, by the way, perfectly aligned with our partner as well, who made some communication about it as well at JP Morgan. There is a logic that we talk about it as well. I don't think there is any defensive view on that matter.

Speaker #1: Yes. No, Steve, I think that anyways, there is a logic that we talk about it because we get nearer to the ELOY. And we see that there is a very strong appetite from the investor community to understand what's coming after the ELOY of Dupixent.

Speaker #3: It's a major product for us . So I think we see that there is an interest and we need to answer to the investor community .

Speaker #3: This has been done , by the way , perfectly aligned with our partner as well . We will I mean , Regeneron made some communication about it as well at JP Morgan .

Speaker #1: It's a major product for us, so I think we see that there is an interest. And we need to answer to the investor community.

Speaker #3: So there is a logic that we talk about it as well . So I don't think there is any defensive view on on that matter .

Speaker #1: This has been done, by the way, perfectly aligned with our partner as well, who Regeneron made some communication about it as well at JP Morgan.

Speaker #3: Yeah . And the last point , Steve , and thank you for your question , is that it has nothing to do with the change of CEO .

Speaker #3: Paul took the commitment in H1 to make an update on the on Dupixent

Speaker #1: So, there is a logic that we talk about as well. So, I don't think there is any defensive view on that matter.

[Company Representative] (Sanofi): Yeah. The last point, Steve, and thank you for your question, is that it has nothing to do with the change of CEO. Paul took the commitment in H1 to make an update on Dupixent LOE.

Speaker #4: Yeah. And the last point, Steve—and thank you for your question—is that it has nothing to do with the change of CEO. Paul took the commitment in H1 to make an update on the Dupixent.

Speaker #10: Okay .

Speaker #5: Next question is from Sachin Jain from Maxim .

Speaker #11: Hi there . Thanks . My question is just another one on the DPI extension slide , if I may . So I wonder if you could provide a bit more detail on the right hand DPI innovation column and where you are with other assets being discussed within the alliance .

Speaker #4: Eloy.

[Company Representative] (Sanofi): Okay. Next question is from Sachin Jain from BofA. Sachin.

Speaker #3: OK. Next question is from Sashin Jain from Beaufort. Sashin?

Speaker #11: So the IL four receptor and then level of progress isn't on discussions around whether each party would put other assets into the collaboration , when we might hear on that .

Sachin Jain: Hi there. Thanks for taking my question. Just another one on the DUPI extension slide, if I may. I wonder if you could provide a bit more detail on the right-hand DUPI innovation column and where you are with other assets being discussed within the alliance. The IL-4 receptor, and then level of progress on discussions around whether each party would put other assets into the collaboration and when we might hear on that. I just wanted to go back to a prior question. There was a question on the Q4W DUPI and whether you could extend beyond that. I wonder if you could just address that. Just wondering whether Q4W is enough of an extension relative to the existing, given the competitive landscape by the time you launch it. Thank you.

Speaker #7: Hi there. Thanks for seeing my question. It's another one on the DP Extension slide, if I may. So, one of you just provided a bit more detail on the right-hand DP Innovation column, and where you are with other assets being discussed within the alliance.

Speaker #11: And I just wanted to go back to a prior question . There was a question on the Q4 week , DPI and whether you could extend beyond that one .

Speaker #7: So the IL-4 receptor. And then, level of progress on discussions around whether each party would put other assets into the collaboration, and when we might hear on that.

Speaker #11: If you could just address that . Just wondering whether Q4 week is enough of an extension to existing , given the competitive landscape , by the time you launch ?

Speaker #7: And then I just wanted to go back to a prior question. There was a question on the Q4 week DP and whether you could extend beyond that.

Speaker #11: Thank you .

Speaker #3: So you take the the two questions . Maybe you start by the Q4 week extension .

Speaker #7: One of you could just address that. Just wondering whether Q4 week is enough of an extension relative to existing, given the competitive landscape by the time you launch it.

Speaker #4: Yes . Thanks for the answer to the . At the moment , we're very focused around the Q4 and we are confident that the Q4 .

Speaker #4: You know , let's just take a step back . 1.4 million patients are dosed with DPI . It is the immunology molecule of the epoch moving to Q4 is an engineering innovation that we that will serve in patients .

Speaker #7: Thank you.

Olivier Charmeil: Houman, you take the two questions, maybe you start by the Q4W extension.

Speaker #1: So, Ouman, you take the question. Maybe you start by the Q4 week extension.

Houman Ashrafian: Yes, Sachin, thanks for answering the question. At the moment, we're very focused around the Q4, and we are confident that the Q4. Let's just take a step back. 1.4 million patients a day with Dupixent. It is the immunology molecule of the epoch. Moving to Q4 is engineering innovation that will serve patients. So number one is, at the moment, we're focused on the Q4 and providing that in multiple indications, et cetera. Then we'll move forward on any further innovations. You wouldn't expect us at this point to show our hand too much on those further innovations.

Speaker #4: Yes, Sashin, thanks for the answer to the question. At the moment, we're very focused around the Q4, and we are confident that the Q4—let's just take a step back.

Speaker #4: 1.4 million patients a day with DP. It is the immunology molecule of the epoch. Moving to Q4 is engineering innovation that we will serve patients.

Speaker #4: So one is at the moment we're focused on Q4 and providing that in multiple indications , etc. . And then we'll move forward on any further innovations .

Speaker #4: And you wouldn't expect us at this point to show a hand too much on those further innovations and to question one , we work very closely along along the Alliance , specifically with the teams from George and Land on on those various I think you call them right hand column indications , whether it's super duper or other molecules that we've talked about and those molecules are being progressed together .

Speaker #4: So number one is, at the moment, we're focused on the Q4 and providing that in multiple indications, et cetera. And then we'll move forward on any further innovations.

Speaker #4: And you wouldn't expect us at this point to show a hand too much on those further innovations. And to question one, we work very closely along the alliance.

Houman Ashrafian: To question one, we work very closely along the alliance, specifically with the teams from George and Len, on those various, I think you call them right-hand column indications, whether it's Super DUPI or other molecules that we've talked about, and those molecules are being progressed together during the alliance. We're excited about moving those forward. We'll tell you more about those over the next few years.

Speaker #4: Certainly those are in the alliance and we're excited about moving those forward . We'll tell you more about those over the next few years

Speaker #4: Specifically, with the teams in Georgian land on those various— I think you call them right-hand column indications—whether it's super DP or other molecules that we've talked about.

Speaker #5: Next question is from Richard Vosser from JP Morgan . Richard .

Speaker #4: And those molecules are being progressed together certainly those that are in the alliance. And we're excited about moving this forward. We'll tell you more about those over the next few years.

Speaker #7: Thanks very much . A couple of questions , please . Firstly , just on Amla , I wondered if you could give us a bit of color from feedback on physicians from around around the data you presented and in particular the karposi sarcoma events that any concerns you're hearing from , from physicians around , around use of amla , amla because of those events .

[Company Representative] (Sanofi): Next question is from Richard Vosser from J.P. Morgan. Richard.

[Company Representative] (Sanofi): Next question is from Richard Vosser from JPMorgan. Richard.

Speaker #3: Next question is from Richard Voster from JP Morgan. Richard?

Richard Vosser: Thanks very much. Couple of questions, please. Firstly, just on amlitelimab. I wondered if you could give us a bit of color from feedback on physicians from AAD around the data you presented, and in particular, the Kaposi's sarcoma events. Any concerns you're hearing from physicians around use of amlitelimab because of those events? A second question also on the pipeline. You mention an outstanding Phase 3 decision on Itepekimab. We've seen another IL-33 from a competitor have a couple of positive Phase 3s or maybe three Phase 3 trials positive. Just what sort of impact does that have on your thinking around pursuing a further trial given the time required to do such a trial? Thanks very much.

Speaker #7: Thanks very much. A couple of questions, please. Firstly, just on amlitelimab—I wondered if you could give us a bit of color from feedback on physicians from AAD around the data you presented.

Speaker #7: And then a second question also on the pipeline , you mentioned an outstanding phase three decision on Itepekimab . We've seen another IL 33 from a competitor , have a couple of positive phase threes or maybe three phase three trials , positive , just what sort of impact does that have on your thinking around pursuing a further trial , given the time required to do such a trial ?

Speaker #7: And in particular, the Kaposi sarcoma events—are there any concerns you're hearing from physicians around use of amlitelimab because of those events? And then a second question also on the pipeline.

Speaker #7: You mentioned an outstanding Phase 3 decision on etopecamab. We've seen another IL-33 from a competitor have a couple of positive Phase 3s, or maybe three Phase 3 trials positive.

Speaker #7: Thanks very much .

Speaker #3: So I met by the the last question on Etokimab before moving to Emily and maybe Manuela , you take the question

Speaker #7: Just what sort of impact does that have on your thinking around pursuing a further trial, given the time required to do such a trial?

Speaker #4: Perfect . On number one . Listen , we we are , as you say , there's an outstanding question about the IL 33 Mab molecule .

Speaker #7: Thanks very much.

Olivier Charmeil: Houman, maybe we start by the last question on Itepekimab before moving to Amlitelimab, and maybe Manuela, you take the question.

Speaker #1: So Ouman might be able to start by the last question on etopecamab before moving to amlitalimab and maybe Manuela, you take the question.

Speaker #4: We are in the midst of a regulatory discussion and discussions with our partners who will come forward relatively soon , I guess , with a decision which will be a portfolio decision .

Houman Ashrafian: Perfect. On number one, listen, as you say, there's an outstanding question about the IL-33 Itepekimab molecule. We are in the midst of a regulatory discussion and discussions with our partners, and we'll come forward, relatively soon, I guess, with a decision, which will be a portfolio decision. Importantly, we take into account all the data, both in the private and public domain, regarding molecules that target the same pathway. Let me, why don't I just pick up the Amlitelimab one as well, Manuela, as long as you're happy for me just to do that while I've got the microphone. With respect to Amlitelimab, we, out of an abundance of a desire to demonstrate the manifest benefit risk of this molecule, we presented the data at AAD super clearly. Let me be clear on three things.

Speaker #4: Perfect. On number one, listen, as you say, there’s an outstanding question about the IL-33 Etepekemab molecule. We are in the midst of a regulatory discussion and discussions with our partners that will come forward relatively soon, I guess, with a decision, which will be a portfolio decision.

Speaker #4: Importantly , we take into account all the data , both in the private and public domain , regarding molecules that target target the same pathway .

Speaker #4: And let me why don't I just pick up the one as well ? Manuela , as long as you're happy for me just to do that while I've got the microphone with respect to Emily Otilimab , we out of an abundance of desire to demonstrate the manifest benefit risk of this molecule , we presented the data at a super clearly .

Speaker #4: Importantly, we take into account all the data, both in the private and public domain regarding molecules that target the same pathway. And let me—why don't I just pick up the amlitelimab one as well, Manuela, as long as you're happy for me just to do that while I've got the microphone.

Speaker #4: Let me be clear On three things . A , a D still represents a biological area which is substantially biologic under . With significant heterogeneity in disease .

Speaker #4: With respect to amlitalimab, we, out of an abundance of desire to demonstrate the manifest benefit-risk of this molecule, presented the data at AAD super clearly.

Speaker #4: And there are opportunity for novel mechanisms of action Point number one , the efficacy has been laid out . I won't repeat it , but case one , case two .

Speaker #4: Let me be clear on three things. AAD still represents an area which is substantially biologic underpenetrated, with significant heterogeneity in disease. And there are opportunities for novel mechanisms of action.

Houman Ashrafian: AAD still represents an area which is substantially biologics under-penetrated, with significant heterogeneity in disease, and there are opportunity for novel mechanisms of action, point number one. The efficacy has been laid out. I won't repeat it, but Case 1, Case 2, sure, and ATLANTIS have been presented and showed that there is no plateau effect for 24 weeks, and with ATLANTIS, there's an improvement up to 52 weeks. Thirdly, we've now put as much safety data in blinded and unblinded data that we've got in the public domain, up to 4,500 patients approximately. We remain confident in the benefit-risk ratio of this molecule. You asked a question, and I'll be very succinct about physician and other responses. We've seen no impact on enthusiasm of physicians and peers, particularly physicians and patients for this drug, based on the data we presented at AAD.

Speaker #4: Sure . And Atlantis have been extant and showed that there is no plateau effect to 24 weeks . And with Atlantis , there's an improvement up to 52 weeks .

Speaker #4: And thirdly , we've now put as much safety data in blinded and unblinded data that we've got in the public domain . Up to 4500 patients , approximately .

Speaker #4: Point number one, the efficacy has been laid out. I won't repeat it. But case one, case two, sure. And Lantus have been extant and showed that there is no plateau effect for 24 weeks.

Speaker #4: And we remain confident in the benefit risk ratio of this molecule . You ask the question , and I'll be very succinct about physician and other responses .

Speaker #4: And with Lantus, there's an improvement up to 52 weeks. And thirdly, we've now put as much safety data in, blinded and unblinded data, that we've got in the public domain—up to approximately 4,500 patients—and we remain confident in the benefit-risk ratio of this molecule.

Speaker #4: We've seen no impact on enthusiasm . Physicians and payers , particularly physicians and patients for this drug . Based on the data we presented , I'd

Speaker #4: You asked the question, and I'll be very succinct about physician and other responses. We've seen no impact on enthusiasm of physicians and payers—particularly physicians and patients—for this drug based on the data we presented at AAD.

Speaker #5: Next question is from Sarita Kapila from Morgan Stanley . Sarita .

Speaker #12: Hi . Thanks for taking my question . So you talked about expanding the GP LP beyond March 31st , which patents are you most confident in for extension ?

[Company Representative] (Sanofi): Next question is from Sarita Kapila from Morgan Stanley. Sarita?

Operator: Next question is from Sarita Kapila from Morgan Stanley. Sarita?

Speaker #12: So is it the method of treatment patterns ? So potentially extending exclusivity to 2034 . And then the second question was on relapse .

Speaker #3: Next question is from Sarita Kapila from Morgan Stanley. Sarita?

Sarita Kapila: Hi, thanks for taking my question. You talked about extending the Dupixent LOE beyond March 31. Which patents are you most confident in for extension? Is it the method of treatment patents, so potentially extending exclusivity to 2034? And then the second question was on Relaprivat. Could you help us understand what's driven the one or two delays to the readout? One of your competitors has alluded to recruitment issues given the trial design and the lack of a Part A component. I was wondering if you could give us some more color, please. Thank you.

Speaker #8: Hi, thanks for taking my question. So, you talked about extending the DP LOE beyond March 31. Which patents are you most confident in for extension?

Speaker #12: But could you help us understand what's driven the 1 or 2 delays to the readout ? One of your competitors has alluded to recruitment issues , given the trial design and a lack of a part , a component .

Speaker #8: So, is it the method-of-treatment patents, so potentially extending exclusivity to 2034? And then the second question was on rilaprobat. Could you help us understand what's driven the one or two delays to the readout?

Speaker #12: So I was wondering if you could give us some more color , please . Thank you .

Speaker #3: Okay . Maybe we start by the question related to a patents .

Speaker #8: One of your competitors has alluded to recruitment issues given the trial design and a lack of a Part A component. So I was wondering if you could give us some more color, please.

Speaker #9: Thanks a lot . Picking one pattern out of tens of patents is not a good testament to the amount of innovation we've done for Dupixent over the years .

Speaker #8: Thank you.

Olivier Charmeil: Okay. Maybe we start by the question related to Dupixent patents.

Speaker #9: We have multiple strong patents going up to 2045 . We believe we have a very strong portfolio and intend to vigorously defend all of them .

Speaker #1: OK. Maybe we start by the question of related to DP patents.

Houman Ashrafian: Thanks a lot. Picking one patent out of tens of patents is not a good testament to the amount of innovation we've done for Dupixent over the years. We have multiple strong patents going up to 2045. We believe we have a very strong patent portfolio and intend to vigorously defend all of them.

Speaker #4: Thanks a lot. Picking one pattern out of tens of patterns, it's not a good testament to the amount of innovation we've done for Dupixent over the years.

Speaker #3: So now moving to Recruitment .

Speaker #4: Yeah , very quickly , really had a great set of phase two results in both patients with standard of care , responsive and non-responsive .

Speaker #4: We have multiple strong patents going up to 2045. We believe we have a very strong patent portfolio and intend to vigorously defend all of them.

Olivier Charmeil: Now moving to Relaprivat recruitment.

Speaker #4: We move straight to phase three . I think we've learnt as we initiated those phase three , what works best and what doesn't work best , particularly at the screening stage of those studies .

Speaker #1: So now, moving to a rilaprobat recruitment.

Houman Ashrafian: Yeah, very quickly. Really had a great set of phase 2 results in both patients with standard of care responsive and non-responsive. We moved straight to phase 3. I think we've learned, as we initiated those phase 3, what works best and what doesn't work best, particularly at the screening stage of those studies. I'm pleased to say the recruitment's picking up. As you articulated, we needed to learn something from the screening of those patients, and now we're moving on. We are optimistic about the impact Riliprubart can have on patient outcomes based on the totality of the data in the public domain.

Speaker #4: Yeah, very quickly. Really had a great set of Phase 2 results in both patients with standard-of-care responsive and non-responsive. We moved straight to Phase 3.

Speaker #4: And I'm pleased to say the recruitment is picking up . So as you articulated , we needed to learn something from the screening of those patients .

Speaker #4: I think we've learned as we initiated those phase threes what works best and what doesn't work best, particularly at the screening stage of those studies.

Speaker #4: And now we're moving on . We are optimistic about the impact really art can have on patient outcomes based on the totality of the data in the public domain

Speaker #4: And I'm pleased to say that recruitment's picking up. So as you articulated, we needed to learn something from the screening of those patients. And now we're moving on.

Speaker #5: Next question is from Seamus Fernandez , from Guggenheim .

Speaker #13: Oh , great . Thanks for the question . So first , on the patent side , just hoping to get a little bit more clarity on how we should be thinking about the timing of potential resolution of the result .

Speaker #4: We are optimistic about the impact rilaprobat can have on patient outcomes, based on the totality of the data in the public domain.

Olivier Charmeil: Next question is from Seamus Fernandez from Guggenheim. Seamus?

[Company Representative] (Sanofi): Next question is from Seamus Fernandez from Guggenheim. Seamus?

Speaker #3: Next question is from Seamus Fernandez from Guggenheim. Seamus?

Speaker #13: You know , typically we see something like a major series of settlements , 2 to 3 years before . Can you say that you're proactively working on that kind of an outcome to happen sooner rather than later , or should we anticipate a standard extended process in the courts , particularly in the US ?

Seamus Fernandez: Oh, great. Thanks for the question. First on the patent side, just hoping to get a little bit more clarity on how we should be thinking about the timing of potential resolution of the results. Typically, we see something like a major series of settlements 2 to 3 years before. Can you say that you're proactively working on that kind of an outcome to happen sooner rather than later? Or should we anticipate a standard extended process, in the courts, particularly in the US? The second question is really, can you just update us on, I believe you were studying lunsekimab in atopic dermatitis, hoping to get a better understanding of where or when we're likely to see those data and if the data there happens to be something that you remain encouraged by or if you're likely to move on. Thanks.

Speaker #4: Oh, great. Thanks for the question. So, first on the patent side, just hoping to get a little bit more clarity on how we should be thinking about the timing of potential resolution of the result.

Speaker #4: Typically, we see something like a major series of settlements two to three years before. Can you say that you're proactively working on that kind of an outcome to happen sooner rather than later?

Speaker #13: And then the second question is , is really , can you just update us on , I believe you were studying Lincecum in atopic dermatitis , hoping to get a better understanding of where or when we're likely to see those data .

Speaker #4: Or should we anticipate a standard, extended process in the courts, particularly in the US? And then the second question is really, can you just update us on—I believe you were studying Linzecamag in atopic dermatitis.

Speaker #13: And if the data there happens to be something that you remain encouraged by , or if you're likely to move on . Thanks .

Speaker #4: Hoping to get a better understanding of where or when we're likely to see those data and if the data there happens to be something that you remain encouraged by or if you're likely to move on.

Speaker #3: Maybe we start by the second question . Thank you for your question . The Ada Oman .

Speaker #4: Yeah . Thank you for the question . We've been delighted by the results in , as I said , the triad of the respiratory disorders are focus is in respiratory disease at the moment .

[Company Representative] (Sanofi): Maybe we start by the second question. Seamus, thank you for your question. The Lunsekimab AD, Houman.

Olivier Charmeil: Maybe we start by the second question. Seamus, thank you for your question. The Lunsekimab AD, Houman.

Speaker #4: Thanks.

Speaker #1: Maybe we start by the second question. Seamus, thank you for your question. The amlucimib AD, Ouman.

Speaker #4: We will make a decision on atopic dermatitis at a later point . But our priorities respiratory

Houman Ashrafian: Yeah, thanks for the question. We've been delighted by the lunsekimab results in, as I said, the triad of the respiratory disorders. Our focus is in respiratory disease at the moment. We will make a decision on atopic dermatitis at a later point, but our priority is respiratory disease.

Speaker #4: Yeah, thanks for the question. We've been delighted by the Linzecamag results in, as I said, the triad of the respiratory disorders our focus is.

Speaker #3: Now moving to the question related to Dupixent patent .

Speaker #9: Thanks . I'm sure your experience in following how other drugs have evolved over time . Reminder that there's a biologic . You're asking me about settlements .

Speaker #1: The focus is on respiratory disease at the moment. We will make a decision on atopic dermatitis at a later point, but our priority is respiratory.

Olivier Charmeil: Now moving to the question related to Dupixent patents.

Speaker #9: And we are sitting here with a pattern of 50 of plus patents in the US . None of which have yet been challenged .

Speaker #2: Now moving to the question related to Dupixent patent .

[Company Representative] (Sanofi): Thanks. I'm sure you're experienced in following how other drugs have evolved over time. Reminder that this is a biologic.

Speaker #3: Thanks. I'm sure your experience in following how other drugs have evolved over time reminds us that there's a biologic. You're asking me about settlements, and we are sitting here with a pattern of 50.

Speaker #9: So if any , if we wanted to give clarity to our investors of the strength and even if we have people lining up to to is nobody at the moment because nobody's challenged our patents .

Houman Ashrafian: You're asking me about settlements, and we are sitting here with a patent of 50 or plus patents in the US, none of which have yet been challenged. If we wanted to give clarity to our investors of the strength, and even if we have people lining up to discuss, there is nobody at the moment because nobody's challenged our patents. Typically, this happens closer for biologics. This happens closer to launch. We do intend to vigorously defend all these patents. To the extent we feel at some point that people understand the strength of our case and we want to give people clarity, we will do that. We are quite a way before that because we have not been challenged at this stage.

[Company Representative] (Sanofi): You're asking me about settlements, and we are sitting here with a patent of 50 or plus patents in the US, none of which have yet been challenged. If we wanted to give clarity to our investors of the strength, and even if we have people lining up to discuss, there is nobody at the moment because nobody's challenged our patents. Typically, this happens closer for biologics. This happens closer to launch. We do intend to vigorously defend all these patents. To the extent we feel at some point that people understand the strength of our case and we want to give people clarity, we will do that. We are quite a way before that because we have not been challenged at this stage.

Speaker #9: Typically , this happens close to for biologics , it's closer to to launch . We do intend to vigorously defend all these patents to the extent we feel at some point that people understand the strength of our case , and we want to give people clarity .

Speaker #3: Or plus patents in the US . None of which have yet been challenged . So even if we wanted to give clarity to our investors of the strength and even if we have people lining up to to discuss , there is nobody at the moment because nobody's challenged our patents Typically , this happens closer for biologics .

Speaker #9: We will do that . But we are we are quite a way beyond before that because we have not been challenged at this stage

Speaker #3: These happens closer to to launch . We do intend to vigorously defend all these patents to the extent we feel at some point that people understand the strength of our case , and we want to give people clarity .

Speaker #5: Next question is from Graham Parry , from City Gram .

Speaker #14: Great . Thanks for taking my questions . So just going back to the Q4 weekly depiction , can you just confirm if it's a hyaluronidase Co-formulation who the partner is and what commercial payers you might have on that and what formulation studies have been completed to date ?

Speaker #3: We will do that, but we are quite a way beyond before that, because we have not been challenged at this stage.

[Company Representative] (Sanofi): Next question is from Graham Parry from Citi. Graham?

Speaker #4: Next question is from Graham Perry from Siti Graham

Graham Parry: Great. Thanks for taking my questions. Just going back to the Q4W Dupixent, can you just confirm if it's a hyaluronidase co-formulation, who the partner is, and what commercial pathways you might have on that? What formulation studies have been completed to date, and if there's any public data or if you intend to show any public data on that. If there is more IP extension, you think the co-formulated Q4W might give you on the asset overall. Secondly, on the IL-4 receptor alpha, what are the milestones for that in terms of data points and what would be the threshold for a decision for the collaboration to invest fully in that project going forward, given it's already covered by the collaboration? Thanks.

Speaker #5: Great. Thanks for taking my questions. So just going back to the Q4 weekly Dupixent, can you just confirm if it's a hyaluronidase co-formulation?

Speaker #14: And if there's any public data or if you intend to share any public data on that , and then if there is what IP extension you think the Co-formulated Q4 weekly might give you on the asset overall .

Speaker #5: Who the partner is, and what commercial payers you might have on that, and what formulation studies have been completed to date? And if there's any public data, or if you intend to share any public data on that.

Speaker #14: And then secondly , on the IL four receptor alpha , what are the milestones for that in terms of data points and what would be the the threshold for a decision for the collaboration to invest fully in that project going forward , given it's already covered by the collaboration ?

Speaker #5: And then if there is , what IP extension you think the co-formulated Q4 weekly might give you on the asset overall ? And then secondly , on the IL four receptor , alpha , what are the milestones for that in terms of data points ?

Speaker #14: Thanks

Speaker #3: Okay . So the first question on the Q4 formulation .

Speaker #5: And what would be the threshold for a decision for the collaboration to invest fully in that project going forward ? Given it's already covered by the collaboration ?

Speaker #4: Yes , I can confirm that it is . However , on the day with a partner , we won't disclose any more than that at this stage .

Speaker #5: Thanks

Olivier Charmeil: Okay. Houman, on the first question on the Q4 formulation.

Speaker #2: Okay. So, woman, and the first question on the Q4 formulation.

Speaker #4: And then on the second question , we don't disclose the milestones for internal decisions around the alpha receptor alpha

Houman Ashrafian: Yes, I can confirm that it is hyaluronidase with a partner. We won't disclose any more than that at this stage. On the second question, we don't disclose the milestones for internal decisions around the IL-4 receptor alpha.

Speaker #1: Yes , I can confirm that it is higher on the days with a partner We won't disclose any more than that at this stage .

Speaker #5: Okay .

Speaker #3: On the On the on the Q4 W patents , any , any

Speaker #1: And then on the second question, we don't disclose the milestones for internal decisions around the R4 alpha. Great.

Speaker #9: Protective innovation ? I think the the objective here is patient convenience . And we'll see what that means

Olivier Charmeil: On the Q4W patents. Oye, any-

Speaker #2: On the next, on the Q4, with patents, any— any—

Speaker #5: Next question is from Peter Verdult from Peter

[Company Representative] (Sanofi): We protect every innovation. I think the objective here is patient convenience, and we'll see what that means.

Speaker #15: Thanks . Peter Verdult . BNP . Two questions please . One on the pipeline , one on capital allocation . Sorry to Labour the point , but coming back , can we go back to the question , what are the exact go forward plans ?

Speaker #3: Protect every innovation. I think the objective here is patient convenience, and we'll see what that means.

[Company Representative] (Sanofi): Next question is from Peter Verdult from BNP Paribas Exane. Peter?

Speaker #4: Next question is from Peter from BNP Paribas. Peter,

Speaker #15: Because it seems to be dragging somewhat . I think we all thought that RFI five would have begun quite a number of months ago .

Peter Verdult: Thanks. Peter at BNP. Two questions, please. One on the pipeline, one on capital allocation. Houman, sorry to labor the point, but can we go back to the Itolizumab question? What are the exact go-forward plans? Because it seems to be dragging somewhat. I think we all thought that ARRY-505 would have begun quite a number of months ago. Can you just clarify when in fact ARRY-505 might begin recruitment or does the developments across the pond or across the channel at Astra sort of change your thinking about the commercial potential here?

Speaker #6: Thanks . BMP two questions , please . One on the pipeline , one on capital allocation to labor . The point . But coming back , can we go back to the Mab question ?

Speaker #15: So can you just clarify when in fact RFI five might be getting recruitment or does the the developments across the across the pond or across the channel at Astra sort of change your thinking about the commercial potential here and then on capital allocation just for Olivier or Francois , is 10 to €15 billion .

Speaker #6: What are the exact go forward plans ? Because it seems to be dragging somewhat . I think we all thought that R55 would have begun quite a number of months ago .

Speaker #6: So can you just clarify when in fact , R55 might be getting recruitment or does the the developments across the across the pond or across the channel at Astra sort of change your thinking about the commercial potential here ?

Speaker #15: The right characterisation of Sanofi's firepower for BD giving . You want to maintain a double A rating and given your comments , you're clearly signalling that you're doubling down on rare diseases .

Peter Verdult: On capital allocation, just for Olivier or François, if EUR 10 to 15 billion is the right characterization of Sanofi's firepower for BD, given you want to maintain a double A rating and given your comments and you clearly signaling that you're doubling down on rare diseases, is this the area where we should expect future BD? Thank you.

Speaker #6: And then on capital allocation , just for Olivier or Francois , if 10 to €15 billion the right characterization of Sanofi's firepower for BD given you want to maintain a double A rating and given your comments , you're clearly signalling that you're doubling down on red .

Speaker #15: Is this the area where we should expect future BD ? Thank you .

Speaker #3: My first question on Etokimab .

Speaker #4: So I just want to make sure that I was clear on the last question on the R four receptor alpha point . I just want to be clear that while we don't disclose the exact stage gates and milestones within the nature of the alliance , it is within the alliance and we are moving forward with it .

Speaker #6: Is this the area where we should expect future BD? Thank you.

Olivier Charmeil: Houman, first question on Itolizumab.

Speaker #2: My first question on Etokimab .

Speaker #1: So, so I just want to make sure that I was clear on the last question on the R4 result to Alpha point.

Houman Ashrafian: I just want to make sure that I was clear on the last question on the IL-4 receptor alpha point. I just want to be clear that while we don't disclose the exact stage gates and milestones within the nature of the alliance, it is within the alliance, and we are moving forward with it. We will tell you more about that as we go forward. Pete, to your question about Itolizumab, there's no sleight of hand on Itolizumab. We have to get regulatory approval before, and a regulatory opinion before we move forward. We have to align with our partner Regeneron. I'd like to reassure everybody that it's high on our dashboard. Manuela and I, on this side of the alliance, are partnered, and we will come back to you as soon as we can.

Speaker #4: So that will we will tell you more about that as we go forward . Pete , to your question about there's no sleight of hand on it to pick them out , we have to get regulatory approval before and a regulatory opinion before we move forward .

Speaker #1: I just want to be clear that, while we don't disclose the exact stage gates and milestones within the nature of the alliance, it is within the alliance, and we are moving forward with it.

Speaker #4: We have to align with our partner Regeneron . I'd like to reassure everybody that it's high on our dashboard . Manuela and I , on this side of the alliance , are partnered , and we will come back to you as soon as we can .

Speaker #1: So that will we will tell you more about that as we go forward . Pete , to your question about . It's about .

Speaker #1: There's no sleight of hand on it to pick them out. We have to get regulatory approval before and a regulatory opinion before we move forward.

Speaker #4: As I said earlier , we're taking the totality of data , not just AstraZeneca data as one , but there's a number of our 33 data points that we need to take into account before we move forward with COPD .

Speaker #1: We have to align with our partner , Regeneron . I'd like to reassure everybody that it's high on our dashboard . Manuela and I , on this side of the alliance are partnered , and we will come back to you as soon as we can .

Speaker #3: Do you want to take the question on BD M&A ? So so on capital allocation , I said last time when we discussed for our full disclosure that we could invest up to €15 billion this year on retainers , Double-A rating in M&A , by the way , it depends on what we buy , because if we buy commercialized assets , it would go probably even maybe potentially up to 10 billion more .

Houman Ashrafian: As I said earlier, we're taking the totality of data, not just AstraZeneca's data as one, but there's a number of our 33 data points that we need to take into account before we move forward with COPD.

Speaker #1: As I said earlier , we're taking the totality of data , not just AstraZeneca data as one , but there's a number of L 33 data points that we need to take into account before we move forward with COPD .

Olivier Charmeil: François, you want to take the question on BD M&A?

Speaker #2: Francois , you want to take the question on the M&A . So so on capital allocation , I said last time when we discussed for our full disclosure that we could invest up to €15 billion this year on retainer , double A rating in M&A .

François-Xavier Roger: On capital allocation, I said last time when we discussed for our full-year disclosure that we could invest up to EUR 15 billion this year on retaining our double-A rating in BD & M&A. By the way, it depends on what we buy. Because if we buy commercialized asset, it would go probably even maybe potentially up to EUR 10 billion more. If we were only buying phase 1, phase 2 asset, it would be probably significantly less than that because it would weigh on our BY. We are looking at opportunities anyway. Time flies, so as soon as we get one quarter, the amount increases to a certain extent as well because we generate additional cash flow, and we have a strong growth profile as well, given that we grew double-digit. In terms of areas and therapeutic areas, exactly as we did last year.

Speaker #3: If we were only buying phase one , phase two , I said it would be probably significantly less than that because it would weigh on our boy .

Speaker #3: So we are looking at opportunities anyway . Time flies . So as soon as we get one quarter , the amount increases to a certain extent as well because we generate additional cash flow and we have a strong growth profile as well .

Speaker #2: By the way , it depends on what we buy because if we buy commercialized assets , it would go probably even maybe potentially up to 10 billion more if we were only buying phase one , phase two assets , it would be probably significantly less than that because it would weigh on our boy .

Speaker #3: Given that we grew double digit in terms of areas and therapeutic areas , exactly as we did last year , you could see that last year we invested in 3 or 4 main therapeutic areas , namely immunology , rare disease , and vaccines .

Speaker #2: So we are looking at opportunities anyway. Time flies. So as soon as we get one quarter, the amount increases to a certain extent as well, because we generate additional cash flow and we have a strong growth profile as well.

Speaker #3: So we are the as a priority . I would say the same three therapeutic areas , while we don't we don't eliminate either the possibility to invest in a white spaces as we did as well last year .

Speaker #2: Given that we grew double digit in terms of areas and therapeutic areas , exactly as we did last year , you could see that last year we invested in three of our four main therapeutic areas , namely immunology , rare disease and vaccines .

François-Xavier Roger: You could see that last year we invested in three of our four main therapeutic areas, namely immunology, rare disease, and vaccines. We are targeting as a priority, I would say the same three therapeutic areas while we don't eliminate either the possibility to invest in wide spaces as we did as well last year, for example.

Speaker #3: For example . Next question .

Speaker #2: So we are targeting the as a priority . I would say the same three therapeutic areas . While we don't we don't eliminate either the possibility to invest in wide spaces as we did as well last year , for example .

Speaker #5: Yes , the next question is , is from David Risinger , from larynx . David

Speaker #16: Yes . Thanks very much . Can you hear me ?

Speaker #10: Yes .

Speaker #16: Great . Thanks for taking my question . I just have one . So , Francois , can you discuss the quarterly EPS progression ahead , including the impact of the Dupixent Alliance R&D reimbursement ?

Olivier Charmeil: Next question.

[Company Representative] (Sanofi): Yes, the next question is from David Risinger from Leerink. David?

Speaker #2: Next question .

Speaker #4: The next question is from David Risinger from Larynx. David.

David Risinger: Yes, thanks very much. Can you hear me?

Speaker #7: Yes . Thanks very much . Can you hear me ?

[Company Representative] (Sanofi): Yes.

Speaker #16: Step down . Thank you .

Speaker #4: Yes .

David Risinger: Great. Thanks for taking my question. I just have one. François, can you discuss the quarterly EPS progression ahead, including the impact of the Dupixent alliance R&D reimbursement step down? Thank you.

Speaker #7: Great . Thanks for taking my question . I just have one . So , Francois , can you discuss the quarterly EPS progression ahead , including the impact of the Dupixent Alliance R&D reimbursement ?

Speaker #3: Are you talking about Q1 or for the full year

Speaker #16: Looking out into later in the year when the reimbursement is eliminated ?

Speaker #3: Okay , so , you know that we are coming to the end of the R&D reimbursement from Regeneron . We will have a negative impact on Boi of probably 400 , a good 400 million this year .

Speaker #7: Step down . Thank you .

François-Xavier Roger: Are you talking about Q1 or for the full year?

Speaker #2: Are you talking about Q1 or for the full year?

David Risinger: Looking out into later in the year when the

Speaker #7: Looking out into later in the year, when the reimbursement is eliminated?

David Risinger: Okay

David Risinger: reimbursement is eliminated.

Speaker #3: We expected initially to have another negative impact of 800 million next year , which will be a bit less because we are anticipating this is partly linked to the fact that since Dupixent is growing faster than we expected , we are anticipating a bit faster the end of the reimbursement .

François-Xavier Roger: Okay. You know that we are coming to the end of the R&D reimbursement from Regeneron. We will have a negative impact on BOI of probably a good -EUR 400 million this year. We expected initially to have another negative impact of EUR 800 million next year, which will be a bit less because we are anticipating this is partly linked to the fact that since Dupixent is growing faster than we expected, we are anticipating a bit faster the end of the reimbursement. Probably net around -EUR 400 million impact on BOI this year, and maybe -EUR 700 million next year, negative again on the top of what we get this year. It may accelerate a bit depending on what we do this year with Dupixent, but that's what is likely to happen.

Speaker #2: Okay , so you know that we are coming to the end of the R&D reimbursement from Regeneron . We will have a negative impact on boy , of probably 400 , a good 400 million this year .

Speaker #2: We expected initially to have another negative impact of $800 million next year, which will be a bit less because we are anticipating this is partly linked to the fact that Dupixent is growing faster than we expected.

Speaker #3: So probably net around 400 million negative impact by this year . And maybe 700 million next year . Negative again on the top of what we get this year .

Speaker #2: We are anticipating a bit faster the end of the reimbursement. So probably net around $400 million negative impact by this year, and maybe $700 million next year.

Speaker #3: It may accelerate a bit depending on what we do this year with Dupixent . But that's what is likely to happen . We expect the balance to be fully reimbursed around Q2 2026 , but obviously this is the reason why it will have an impact on up to Q2 2027 .

Speaker #2: Negative again , on the top of what we get this year , it may accelerate a bit depending on what we do this year with Dupixent .

Speaker #3: You may remember as well that we said that in spite of that , our boy will increase both in margin and in absolute value , both in 26 and 27 .

Speaker #2: But that's what is likely to happen. We expect the balance to be fully reimbursed around Q2 2026, but obviously this is the reason why it will have an impact up to Q2 2027.

François-Xavier Roger: We expect the balance to be fully reimbursed around Q2 2026, but obviously this is the reason why it will have an impact on up to Q2 2027. You may remember as well that we said that in spite of that, our BOI will increase both in margin and in absolute value, both in 2026 and 2027. We'll be able to absorb it through our growth profile and profitable growth as well. Next question.

Speaker #3: So we'll be able to absorb it through our gross profile and profitable growth as well Next question .

Speaker #2: You may remember as well that we said that in spite of that , our boy will increase both in margin and in absolute value , both in 26 and 27 .

Speaker #5: Next question is from Matthew Weston from UBS , Matthew

Speaker #2: So we'll be able to absorb it through our growth profile, and profitable growth as well. Next question.

[Company Representative] (Sanofi): Yes. Next question is from Matthew Weston from UBS. Matthew?

Speaker #11: Took forever to get .

Speaker #4: Next question is from Matthew Weston from UBS. Matthew.

Speaker #4: The unmute signal . Two questions please . Thank you for taking them . First in your opening comments , you said should be concerned over over the sarcoma cases because the rates of malignancy in the control arm , Kieran observed exactly the same , but said that sarcoma being mechanistic was a reason , reason to kill the program .

Matthew Weston: Sorry, took forever to get the unmute signal. Two questions, please. Thank you for taking them. First, on the tab, in your opening comments you said we should be concerned over the Kaposi's sarcoma cases because the rates of malignancy faced in the control arm. Kieran observed exactly the same, but said that the sarcoma being mechanistic was a reason to kill the program. Why is he right and Kieran wrong? Then secondly, on Blueprint. A key element to Blueprint acquisition, as I recall, was the foundation of Sanofi's standalone immunology commercial efforts beyond DC. Now that there's a lot of talk about reimposing the original alliance, does that mean you're de-emphasizing investment in standalone immunology?

Speaker #8: Took forever to get the signal . Two questions please . Thank you for taking them In your opening comments , you said we should be concerned over over the side coma cases because the rates of malignancy in the control arm Kieran observed exactly the same , but said that sarcoma being mechanistic was a reason .

Speaker #4: Why is she right and Kieran wrong , wrong . And then secondly , on blueprint blueprint , a key element of acquisition . As I recall , was as a foundation for Sanofi's standalone immunology commercial efforts .

Speaker #4: Beyond beyond . Now that there's a lot of talk about reinventing the original alliance , that means you're de-emphasizing investment in standalone immunology

Speaker #8: Reason to kill . The program . Why is he right ? And Kieran wrong , wrong . And then secondly , on blueprint blueprint , a key element of acquisition , as I recall , was as a foundation for Sanofi's standalone immunology efforts .

Speaker #17: So the line was pretty bad . So maybe on the first question on AML .

Speaker #8: Beyond beyond D3. Now, there's a lot of talk about reinventing the original alliance. That means you're de-emphasizing investment in standalone immunology.

Speaker #4: Yeah . Matthew , thank you for your question . I'm not I wouldn't speculate on the decision making within Kawachiya and Amgen from our own perspective , all I can tell you is that the the benefit risk of Otilimab is differentiated .

Olivier Charmeil: The line was pretty bad. Maybe on the first question, on Amlitelimab.

Speaker #9: So the line was pretty bad. So maybe on the first question on Emily.

Houman Ashrafian: Yeah. Matthew, thank you for your question. I wouldn't speculate on the decision-making within Kyowa Kirin and Amgen. From our own perspective, all I can tell you is that the benefit-risk of amlitelimab is differentiated. We are consistently of the opinion that we bring that to patients. Just to be very specific, our rates of fever, chills, and pyrexia are extremely low and lower than any other molecule in the OX40 pathway. Number two is that we have, as I said, about 4,500 patients in non-blinded studies, demonstrated two cases of Kaposi's sarcoma, both of which will be ten years, both of which are improving. Then number three is across our other side effects and other issues, they're balanced across placebo and treatment arm. Overall, we remain confident at present around the value of amlitelimab in patients with atopic dermatitis, the benefit-risk in patients with atopic dermatitis. Olivier, over to you.

Speaker #1: Yeah . Matthew , thank you for your question . I'm not I wouldn't speculate on the decision making within Kawachiya and Amgen from our own perspective , all I can tell you is that the the benefit risk of Otilimab is differentiated .

Speaker #4: We , we are consistently , the opinion that we bring that to patients just to be very specific , our rates of fever , chills and pyrexia are extremely low and lower than any other molecule in the Ox40 pathway .

Speaker #4: Number two is that we've . In , as I said , about 4500 patients in blind and study demonstrated two cases of Kaposis , both of which were continuous , both of which are improving .

Speaker #1: We , we are consistently with the opinion that we bring that to patients just to be very specific , rates of fever , chills , and pyrexia are extremely low and lower than any other molecule in the pathway .

Speaker #4: And then number three is across our other side effects and other issues . They're balanced across placebo and treatment arm . So overall , we remain confident at present around the value of analytical lab in patients with better benefit risk in patients with atopic dermatitis .

Speaker #1: Number two is that we've . In , as I said , about 4500 patients in blind and unblinded study demonstrated two cases of Kaposi's , both of which were cutaneous , both of which are improving .

Speaker #1: And then number three is across our other side effects and other issues . They're balanced across placebo and treatment arm . So overall , we remain confident at present around the value of analytical Mab in patients with the benefit risk .

Speaker #4: Olivier , over to you .

Speaker #17: Yeah . So blueprint has several dimensions . There is an immunologic dimension , but there is also a rare disease dimension . And this is why we have positioned it in our rare disease franchise because we think that it's the best home for for blueprint .

Olivier Charmeil: Yeah, Blueprint has several dimensions. There is an immunology dimension, but there is also a rare disease dimension, and this is why we have positioned it in our rare disease franchise because we think that it's the best home for Blueprint. Next question.

Speaker #1: In patients with atopic dermatitis . Olivier , over to you .

Speaker #17: Next question .

Speaker #5: So the next question is from Michael Leuchten from Jefferies , who wrote the question . So on slide eight , you talk about innovation .

Speaker #9: Yeah . So blueprint at several dimensions , there is an immunology dimension , but there is also a rare disease dimension . And this is why we have positioned it in our rare disease franchise , because we think that it's the best home for for blueprint .

Speaker #5: New assets and new assets to leverage the GV infrastructure . Can you clarify how that links with BD and or you would work with both parties having an economic stage ?

[Company Representative] (Sanofi): The next question is from Michael Leuchten from Jefferies, who wrote the question. On slide 8, you talk about innovation, new assets, and new asset to leverage the JV infrastructure. Can you clarify all that links with BD and all you would work with both parties having an economic stake? The second one is for François. Is BD on pause until Belen arrives or is capital deployment in flight or on an ongoing strategy?

Speaker #5: And then the second one is for Francois , is BD on pause until Bellen arrives or is capital deployment in flight or on an ongoing strategy

Speaker #9: Next question .

Speaker #4: So the next question is from Michael , from Jefferies , who wrote the question . So on slide eight , you talk about innovation .

Speaker #4: New assets, and new assets to leverage the GV infrastructure. Can you clarify how all that links with BD, and how you would work with both parties?

Speaker #17: We want to start by the first question . I think we have been pretty active , including in the last few weeks on the on the side .

Speaker #4: Having an economic state? And then the second one is for François. Is BD on pause until Bellon arrives, or is capital deployment in flight or on an ongoing strategy?

Speaker #17: But you might want to compliment . .

Speaker #3: No , but I mean , obviously we are looking forward to welcoming Berlin in a few days , but business goes on in the meantime , so we have not stopped working .

François-Xavier Roger: We want to start by the first question. I think we have been pretty active, including in the last few weeks, on the BD side, but you might want to complement. No, but obviously we are looking forward to welcoming Belen in a few days, but business goes on in the meantime. We have not stopped working. We have not stopped being active in the market, including in BD. As Olivier said, we have been very active and we have an acting CEO as well with Olivier. We have a board of director, and the entire management is totally mobilized to continue business while waiting for Belen's arrival in a couple of days. Michael, on your question regarding any potential joint venture, I would say that of course everything is subject to discussion with Regeneron.

Speaker #9: We want to start by the first question . I think we have been pretty active , including in the last few weeks on the on the BD side , but you might want to compliment .

Speaker #3: We have not stopped being active in the market , including in BD . So as Olivier said , we have been very active and we have a an acting CEO as well with Olivier , we have the board of directors on the entire management is totally mobilized to continue business while once again waiting for Berlin's arrival in a couple of days

Speaker #9: .

Speaker #2: No , but I mean , obviously we are looking forward to welcoming Melanie in a few days , but business goes on . In the meantime .

Speaker #2: So we have not stopped working . We have not stopped being active in the market , including in BD . So as Olivier said , we have been very active and we have .

Speaker #17: On Michael , on your question regarding any potential joint venture , I would say that of course , everything is subject to discussion with regional .

Speaker #9: A

Speaker #2: An acting CEO as well . With Olivier , we have the board of directors on the entire management is totally mobilized to continue business while again , waiting for arrival in a couple of days .

Speaker #5: So the next question is from Simon Baker from Redburn Simon .

Speaker #18: Thank you very much for taking my questions . Two quick ones , if I may please . I'm going back to Florence . Question right at the beginning .

Speaker #9: On Michael, on your question regarding any potential joint venture, I would say that, of course, everything is subject to discussion with General.

Speaker #18: We get a lot of debate now about the competitive landscape within within immunology . I just wonder if you could give us a little more detail on a indication or indication basis , how you're seeing that evolve overall , clearly depicts is out , is outpacing our expectations .

[Company Representative] (Sanofi): Okay. The next question is from Simon Baker from Redburn. Simon?

Speaker #4: So the next question is from Simon Baker from Redburn . Simon .

Simon Baker: Thank you very much for taking my questions. Two quick ones if I may, please. Going back to Florent's question right at the beginning. We get a lot of debate now about the competitive landscape within immunology. I just wonder if you could give us a little more detail on an indication by indication basis how you're seeing that evolve. Overall, clearly, Dupixent is outpacing our expectations. Any color on that would be very helpful. A quick one for François. On net financial expense, you did guide for the full year being a little higher than last year because of higher debt. In Q1, it was a lot lower than we were expecting. I just wonder if you could give us some pointers on the evolution and cadence of net financial expense as the year goes on. Thanks so much.

Speaker #10: Thank you very much for taking my questions . Two quick ones , if I may , please Going back to Florence , question right at the beginning .

Speaker #18: But , but any color on that would be very helpful . And then quick one for Francois on net financial expense . You did guide for the full year being a little higher than last year because of higher debt .

Speaker #10: We get a lot of debate now about the competitive landscape within within immunology . I just wondered if you could give us a little more detail on a indication or indication basis , how you're seeing that evolve overall .

Speaker #18: In Q1 , it was a lot lower than we were expecting . So I just wonder if you could give us some pointers on the the evolution and cadence of net financial expense as the year goes on .

Speaker #10: Clearly , Dupixent is out is outpacing our expectations . But but any color on that would be very helpful . And then a quick one for Francois on net financial expense .

Speaker #18: Thanks very much , Simon .

Speaker #17: Very good . Very . Thank you for the question . So , Francois , a little bit more color on the financial expenses .

Speaker #10: You did guide for the full year being a little higher than last year because of higher debt in Q1 it was a lot lower than we were expecting .

Speaker #3: On net financial expenses , you probably remember that . Anyway , last year , Q1 was before we received the proceeds from Opella .

Speaker #10: So just wondering if you could give us some pointers on the the evolution and cadence of net financial expenses . The year goes on .

Olivier Charmeil: Simon, very good. Thank you for the question. François, a little bit more color on the financial expenses.

Speaker #3: We had a rather still relatively high level of net and gross debt , which is the reason why we had the level of finance costs that was relatively high .

Speaker #10: Thanks so much, Simon.

Speaker #9: Very good. Very thank you for the question. So, François, a little bit more color on the financial expenses.

François-Xavier Roger: On net financial expenses, you probably remember that anyway, last year, Q1 was before we received the proceeds from Opella. We had a rather still relatively high level of net and gross debt, which is the reason why we had the level of finance cost that was relatively high. We gave a guidance at the beginning of the year on the fact that our finance cost would increase this year, and we mentioned immediately that would be subject to additional BD and M&A. We have not bought large assets in Q1, which is the reason why there was no impact in Q1. It may be. An M&A for more significant amounts, if any, may come a bit later in the year than maybe what we were anticipating when we were doing our budget.

Speaker #3: We gave a guidance at the beginning of the year on the fact that our finance costs would increase this year , that , and we mentioned immediately that would be subject to additional BD and M&A .

Speaker #2: On net financial expenses . You probably remember that anywhere last year , Q1 was before we received the proceeds from Opella . So we had a rather still relatively high level of net and gross debt , which is the reason why we had the level of finance costs .

Speaker #3: We have not been we have not bought large assets in Q1 . So which is the reason why there was no impact in Q1 .

Speaker #2: That was relatively high . We gave a guidance at the beginning of the year on the fact that our finance costs would increase this year , that , and we mentioned immediately that would be subject to additional BD and M&A .

Speaker #3: So it may be an M&A for more significant amounts , if any , if any , insist may come a bit later in the year , maybe what we were anticipating when we were doing our budget .

Speaker #2: We have not been we have not bought large assets in Q1 . So which is the reason why there was no impact in Q1 .

Speaker #3: So you can probably factor the fact that there might be a little bit less than what we thought initially for the full year .

Speaker #3: That being said , I still expect an increase in terms of financing cost versus last year , but maybe a bit more moderate than we thought due to some time delay in

Speaker #2: So it may be enemy more significant amounts , if any , if any . I may come a bit later in the year , maybe what we were anticipating when we were doing our budget .

François-Xavier Roger: We can probably factor the fact that there might be a little bit less than what we sought initially for the full year. That being said, I still expect an increase in terms of financing cost versus last year. That may be a bit more moderate than we saw due to some time delay in BDM&A.

Speaker #2: So, you can probably factor the fact that there might be a little bit less than what we thought initially for the full year.

Speaker #17: Manuel on the broad question on immunology .

Speaker #1: Yes , and I'll keep it short , because we're almost at time . I think the question is a really good one . More competition in immunology , but at the same time you also have to look at how nascent some of these therapeutic areas still are .

Speaker #2: That being said, I still expect an increase in terms of financing costs versus last year, but maybe a bit more moderate than we saw, due to some time delay in the M&A.

Olivier Charmeil: Manuela, on the broad question on immunology.

[Company Representative] (Sanofi): Yes, I'll keep it short because we're almost at time. I think the question is a really good one. More competition in immunology. At the same time, you also have to look at how nascent some of these therapeutic areas still are. Let's just take atopic dermatitis as an example. We're barely above 18% advanced therapy penetration. New entrants and new mechanisms of action in all of these categories, more competitors, more players, is actually helping to create more awareness, and more adoption of advanced treatments. That's what we're looking for. There's definitely, in all of those spaces, there's still significant unmet needs that we're trying to meet ourselves, but also with additional MOAs. Yes, more competition, but we're actually welcoming it.

Manuela Buxo: Yes, I'll keep it short because we're almost at time. I think the question is a really good one. More competition in immunology. At the same time, you also have to look at how nascent some of these therapeutic areas still are. Let's just take atopic dermatitis as an example. We're barely above 18% advanced therapy penetration. New entrants and new mechanisms of action in all of these categories, more competitors, more players, is actually helping to create more awareness, and more adoption of advanced treatments. That's what we're looking for. There's definitely, in all of those spaces, there's still significant unmet needs that we're trying to meet ourselves, but also with additional MOAs. Yes, more competition, but we're actually welcoming it.

Speaker #9: Manual and the broad question on immunology .

Speaker #1: Let's just take atopic dermatitis as an example . We're barely above 18% advanced therapy penetration and new entrants and new mechanisms of actions .

Speaker #11: Yes , and I'll keep it short , because we're almost at time . I think the question is a really good one . More competition in immunology .

Speaker #1: And all of these categories , more competitors , more players is actually helping to create more awareness and more adoption of advanced treatments .

Speaker #11: But at the same time, you also have to look at how nascent some of these therapeutic areas still are. Let's just take atopic dermatitis as an example.

Speaker #1: So that's what we're looking for . And there's definitely in all of those spaces , there's still significant unmet needs that we're trying to meet ourselves .

Speaker #11: We're barely above 18% advanced therapy penetration and new entrants and new mechanisms of actions . And all of these categories , more competitors , more players is actually helping to create more awareness and more adoption of advanced treatments .

Speaker #1: But also with additional moas . So yes , more competition , but we're actually welcoming it .

Speaker #5: Next question is from Rajesh Kumar from HSBC . Rajesh .

Speaker #11: So that's what we're looking for. And there's definitely, in all of those spaces, there's still significant unmet needs that we're trying to meet ourselves.

Speaker #6: Hi . Just

Speaker #19: A bit of clarification on capital deployment strategy . You indicated that if you were to buy a late stage asset , the firepower could be greater than 15 billion .

Speaker #11: But also with additional Moas . So yes , more competition , but we're actually welcoming it . Okay .

Olivier Charmeil: Next question is from Rajesh Kumar from HSBC. Rajesh?

[Company Representative] (Sanofi): Next question is from Rajesh Kumar from HSBC. Rajesh?

Speaker #4: Next question is from Rajesh Kumar from HSBC. Rajesh.

Rajesh Kumar: Hi, just a bit of clarification on capital deployment strategy. You indicated that if you were to buy a late-stage asset, the firepower could be greater than EUR 15 billion. Are you thinking of buying a late-stage asset? That's the first question. Second question I have is, obviously, Dupixent, you are going to work on life cycle management. It's teplizumab. We don't know what you're going to do. You're dependent on what the regulators are saying. Amlitelimab, you are a lot more confident than others. If I take all of those, how are you thinking the R&D investments in these projects are factored into your capital allocation framework? We truly appreciate what sort of risk weighting you put to these different scenario outcomes.

Speaker #19: Are you thinking of buying a late stage asset ? That's the first question . Second question . I have is , you know , obviously Dupixent , you are going to work on life cycle management .

Speaker #8: Hi . Just

Speaker #12: A bit of clarification on capital deployment strategy . You indicated that if you were to buy a late stage asset , the firepower could be greater than 15 billion .

Speaker #19: You know , it's we don't know what you're going to do . You depend dependent on what the regulators are saying . You know , I'm literally Mab you are a lot more confident than others .

Speaker #12: Are you thinking of buying a late stage asset ? That's the first question . Second question I have is , you know , obviously , Dupixent , you are going to work on life cycle management .

Speaker #19: So if I take all of those , how how are you thinking the R&D investments in these projects are factored in to your capital allocation framework ?

Speaker #12: You know , it . We don't know what you're going to do . You dependent on what the regulators are saying . You know , I'm literally you are a lot more confident than others .

Speaker #19: We truly appreciate what sort of risk weighting you put to these different , you know , scenario outcomes

Speaker #12: So if I take all of those , how how are you thinking ? The R&D investments in these projects are factored in to your capital allocation framework ?

Speaker #17: So thank you . On the first question , on late stage asset related to capital allocation .

Speaker #3: Yes , Rajesh , I cannot comment on what we are looking at today because it's obviously a confidential by nature , but we I think we have a duty to look broadly at as said , that makes sense from a strategic point of view , from a scientific point of view , from a financial point of view .

Speaker #12: We're truly appreciate what sort of risk weighting you've put to these different , you know , scenario outcomes

Olivier Charmeil: Rajesh, thank you. On the first question on late-stage asset related to capital allocation.

Speaker #9: So thank you . On the first question on late stage asset related to capital allocation .

François-Xavier Roger: Yes, Rajesh, I cannot comment on what we are looking at today because it's obviously confidential by nature. I think we have a duty to look broadly at asset that makes sense from a strategy point of view, from a scientific point of view, from a financial point of view. We are looking at a certain number of assets, including late-stage assets. Although, obviously speaking, we have said it over the last couple of quarters, our interest is more for early-stage assets. We are not eliminating or discounting any opportunity either in late-stage assets. As I said, if we were buying late-stage asset, as for example, or commercialized asset, as we did with Blueprint last year obviously it adds some BOI, and as a consequence of that, it does give us a little bit more opportunity in terms of leverage.

Speaker #3: So we are looking at a certain number of assets , including late stage assets , although we have said it over the last couple of quarters , our interest is more for early stage assets , but we are not eliminating or discounting any opportunity either in late stage assets .

Speaker #2: Yes . Rajesh . I cannot comment on what we are looking at today because it's obviously a confidential by nature , but we I think we have a duty to look broadly at a set that makes sense from a strategic point of view , from a scientific point of view , from a financial point of view .

Speaker #3: As I said , if we were buying late stage assets . As for example , or commercialized assets as we did with blueprint last year , obviously it adds some boy .

Speaker #2: So we are looking at a certain number of assets , including late stage assets , although we have said it over the last couple of quarters , our interest is more for early stage assets , but we are not eliminating or discounting any opportunity either in late stage assets .

Speaker #3: And as a consequence of that , it does give us a little bit more opportunity in terms of leverage . But so we once again , we are looking at a fairly broad spectrum of assets , as we always do .

Speaker #2: As I said , if we were buying late stage assets as , for example , or commercialized assets , as we did with blueprint last year , obviously it adds some boy and as a consequence of that , it does give us a little bit more opportunity in terms of leverage .

Speaker #3: And I think we have a duty to do that .

Speaker #17: Maybe getting back to your second question , can you be a little bit more precise with your question On Dupixent Lifecycle Management and allocation of resources

François-Xavier Roger: Once again, we are looking at a fairly broad spectrum of assets, as we always do, and I think we have a duty to do that.

Speaker #2: But so we once again , we are looking at a fairly broad spectrum of assets , as we always do . And I think we have a duty to do that .

Olivier Charmeil: Rajesh, maybe getting back to your second question, can you be a little more precise with your question on Dupixent life cycle management and allocation of resources?

Speaker #19: Particularly basically you're going Sorry , you're going to do some development expenditure there , right ? For different formulations . And you're going to come up with a strategy to manage the lifecycle .

Speaker #9: Maybe getting back to your second question , can you be a little bit more precise with your question On Dupixent lifecycle management and allocation of resources

Rajesh Kumar: Typically, basically, you're going to do some development expenditure there, right, for different formulations, and you're going to come up with a strategy to manage the life cycle. You're going to spend money on R&D, right? How much of that was already factored into your earlier medium-term R&D spending run rate, and how much is incremental and new?

Speaker #12: Typically , basically , you're going Sorry , you're going to do some development expenditure there , right ? For different formulations . And you're going to come up with a strategy to manage the lifecycle .

Speaker #19: So you you're going to spend money on R&D , right ? So how much of that was already factored into your earlier medium term R&D spending run rate .

Speaker #19: And how much is incremental and new ?

Speaker #17: So and how much is incremental ? How much is already factored in our plan ?

Speaker #12: So you you're going to spend money on R&D , right ? So how much of that was already factored into your earlier medium term R&D spending run rate ?

Speaker #4: Yeah , much much of its factored in . And of course it's part of the alliance relationship with Dupixent . And so that's pretty straightforward .

Speaker #4: Thanks , Rajesh , for the question .

Olivier Charmeil: Houman, how much is incremental, how much is already factored in our plan?

Speaker #17: Okay . So thank you , Rakesh , for this last question . So we had a very strong start to 226 with double digit sales .

Speaker #12: And how much is incremental and new?

Speaker #9: So, and how much is incremental? How much is already factored into our plan?

Houman Ashrafian: Yeah, much of it's factored in, and of course, it's part of the alliance relationship with Dupixent. That's pretty straightforward. Thanks, Rajesh, for the question.

Speaker #17: And EPS growth . Sales advanced by 13.6% , supported by pharma launches and recent acquisition and business EPS was up by 14% . We obtained five regulatory approvals , all in immunology , achieved one positive phase three study readout for Van Gluckstadt in rare disease and reported encouraging phase two data for EMB in respiratory disease .

Speaker #1: Yeah , much much of it's factored in . And of course it's part of the alliance relationship with Dupixent . And so that's pretty straightforward .

Olivier Charmeil: Okay. Thank you, Rajesh, for this last question. We had a very strong start to 2026 with double-digit sales and EPS growth. Sales advanced by 13.6%, supported by pharma launches and recent acquisition. Business EPS was up by 14%. We obtained five regulatory approvals, all in immunology, achieved one positive phase 3 study readout for Venglustat in rare disease, and reported encouraging phase 2 data for lunsekimab in respiratory disease. Finally, we reiterated our guidance for 2026 and the commitment to deliver profitable growth. With this, I would like to thank you for the interest in Sanofi, and we will now close the call.

Speaker #1: Thanks , Rajesh , for the question .

Speaker #9: Okay , so thank you , Rakesh , for this last question . So we had a very strong start to . 226 with double digit sales and EPS growth .

Speaker #9: Sales advanced by 13.6% , supported by pharma launches and recent acquisitions and business EPS was up by 14% . We obtained five regulatory approvals , all in immunology , achieved one positive phase three study readout for vein clustered in rare disease and reported encouraging phase two data for leukemia .

Speaker #9: In respiratory disease . And finally , we reiterate our guidance for 2026 and the commitment to deliver profitable growth . With this , I would like to thank you for the interest in Sanofi , and we will now close the call

Operator: The recording has stopped.

Speaker #13: The recording has stopped

Steve Scala: I will now close the session. Everybody, have a great day.

Operator: Goodbye

Q1 2026 Sanofi SA Earnings Call

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