Group 1: Fund Performance - Oakmark Global Select Fund delivered a return of 2.91% in the fourth quarter of 2025, lagging behind the MSCI World Index's gain of 3.12% [1] - Healthcare and financials were the top performance contributors, while consumer discretionary and consumer staples detracted from performance [1] Group 2: Sanofi Overview - Sanofi is a global pharmaceutical company known for developing biologics, vaccines, and healthcare solutions, particularly its blockbuster drug Dupixent [3] - As of January 14, 2026, Sanofi's stock closed at $47.89 per share, with a one-month return of -0.21% and a 52-week loss of 5.62% [2] - Sanofi has a market capitalization of $116.027 billion [2] Group 3: Investment Insights on Sanofi - The company has prioritized innovation through aggressive investment in research and development, cultivating a promising product pipeline [3] - Despite strong fundamentals, Sanofi's stock has been affected by a volatile vaccine market, investor concerns about patent cliffs, and minimal value ascription to its pipeline, creating an investment opportunity [3] - Sanofi is not among the 30 most popular stocks among hedge funds, with 32 hedge fund portfolios holding the stock at the end of Q3, up from 24 in the previous quarter [4]

Core Insights - Sanofi has received approval from the National Medical Products Administration in China for two innovative medicines: Myqorzo (aficamten) for obstructive hypertrophic cardiomyopathy (oHCM) and Redemplo (plozasiran) for familial chylomicronaemia syndrome (FCS) [1][2][9] Myqorzo (aficamten) - Myqorzo is a selective, small-molecule cardiac myosin inhibitor designed to improve functional capacity and relieve symptoms in patients with oHCM, the most common monogenic inherited cardiovascular disorder [2][7] - The approval was based on the positive results from the pivotal SEQUOIA-HCM phase 3 study (clinical study identifier: NCT05186818) [2] - Myqorzo has been designated as breakthrough therapy and orphan drug in the US, and breakthrough therapy in China, with a positive opinion for marketing authorization in the EU expected in Q1 2026 [8] Redemplo (plozasiran) - Redemplo is a small-interfering RNA (siRNA) medicine that suppresses the production of apoC-III, targeting triglyceride reduction in patients with FCS, a severe and rare disease characterized by extremely high triglyceride levels [3][11] - The approval was based on the positive results from the pivotal PALISADE phase 3 study (clinical study identifier: NCT05089084) [3] - Redemplo has received multiple designations including breakthrough therapy and orphan drug in the US, and is also approved in Canada and China for treating FCS patients [11][12] Hypertrophic Cardiomyopathy (HCM) - HCM is characterized by abnormal thickening of the heart muscle, leading to impaired heart function and various symptoms such as chest pain and shortness of breath [4][5] - It has two forms: obstructive HCM (oHCM) affecting two-thirds of patients and non-obstructive HCM affecting one-third [5] - Serious complications from HCM include atrial fibrillation, stroke, and it is a leading cause of sudden cardiac death in young people [6] Familial Chylomicronaemia Syndrome (FCS) - FCS is a rare disease leading to triglyceride levels exceeding 880 mg/dL (9.94 mmol/L), which can result in severe complications such as pancreatitis and diabetes [10] - The approval of Redemplo addresses a significant unmet medical need for patients suffering from this condition [3][11] Sanofi's Commitment - The approvals of Myqorzo and Redemplo highlight Sanofi's long-term commitment to providing innovative medicines to patients in China, particularly in areas with large unmet medical needs [2][9]

Core Insights - The market performance of Clopidogrel exceeded expectations, becoming a "blockbuster" drug that significantly supported Sanofi's growth and provided a capital foundation for subsequent acquisitions [1] Group 1: Company Growth and Strategy - Sanofi's merger with Genzyme initiated resource integration and product line optimization to consolidate its industry position, avoiding risks associated with patent cliffs [2] - Following the merger, Sanofi's sales surged, surpassing €30 billion in 2010, making it the fourth-largest pharmaceutical company globally [2] - Sanofi invested $17 billion in acquisitions from 2008 to 2010, enhancing its over-the-counter and generic drug lines, thereby reducing reliance on single blockbuster drugs [2] Group 2: Diversification and Innovation - After 2010, Sanofi expanded into the orphan drug sector, acquiring Genzyme for $21 billion, which helped elevate its revenue and establish it as a leader in orphan drugs [3] - Sanofi's total sales grew from €30.4 billion in 2010 to €34 billion in 2015, demonstrating resilience against the patent cliff of Clopidogrel [3] - The company underwent strategic adjustments post-2016, forming five key business segments and optimizing operations through asset swaps and acquisitions [4] Group 3: Long-term Growth and Future Prospects - Sanofi successfully navigated patent cliff crises, maintaining low debt levels while introducing new potential products like U300 insulin and Dupixent [4] - The company is actively exploring emerging fields such as RNAi and tumor immunotherapy to ensure long-term growth [4] - Sanofi's development history illustrates the importance of innovation and adaptability in a competitive market environment [5][6]

Core Insights - The CEO of Sanofi, Paul Hudson, indicated that the U.S. is expected to experience a slight decline in vaccine demand this year due to misinformation and increased scrutiny from the current administration [1] Company Summary - Sanofi's leadership is addressing challenges in vaccine demand, highlighting external factors such as misinformation and political scrutiny that may impact public perception and uptake [1]

Core Viewpoint - Sanofi, a French société anonyme, has disclosed its total number of voting rights and shares as of December 31, 2025, in compliance with French commercial regulations. Group 1: Share Information - The total number of issued shares is 1,219,502,152 [1] - The number of real voting rights, excluding treasury shares, is 1,341,770,035 [1] - The theoretical number of voting rights, including treasury shares, is 1,353,630,675 [1]

Core Viewpoint - Dynavax Technologies Corporation is being acquired by Sanofi for nearly $2.2 billion, with a cash tender offer of $15.50 per share, indicating strong market interest and potential for growth in the biopharmaceutical sector [1]. Company Overview - Dynavax Technologies Corporation specializes in advanced vaccines, including a hepatitis B vaccine and an immune response booster [1]. - The CEO, Ryan Spencer, expressed confidence that the acquisition will enhance the company's ability to address public health needs through Sanofi's commercial reach and development capabilities [1]. Acquisition Details - Sanofi announced the acquisition on December 24, with a total deal value of approximately $2.2 billion [1]. - The cash tender offer is set at $15.50 per share, reflecting a premium for Dynavax shareholders [1]. Market Context - The acquisition highlights the growing interest in biopharmaceutical companies that focus on innovative vaccine development, particularly in the context of public health [1]. - While Dynavax presents a potential investment opportunity, there are suggestions that certain AI stocks may offer greater upside potential with less risk [1].

Core Insights - Sanofi's Teizeild (teplizumab) has received approval from the European Commission to delay the onset of stage 3 type 1 diabetes (T1D) in patients aged eight years and older with stage 2 disease, following a positive opinion from the European Medicines Agency [1][2] Group 1: Drug Approval and Market Impact - Teizeild is the first disease-modifying drug for T1D authorized in the European Union and is already approved in the United States and other countries for similar indications [2] - The approval is based on the TN-10 phase II study, which demonstrated significant delays in progression from stage 2 to stage 3 T1D, with a median time of 48.4 months for the Teizeild group compared to 24.4 months for the placebo group [5][6] - The study showed that 57% of patients treated with Teizeild remained in stage 2, while only 28% in the placebo group did, with fewer adverse events reported [6] Group 2: Financial and Strategic Context - Teizeild was added to Sanofi's portfolio in 2023 after the company acquired Provention Bio for $2.9 billion, which originally developed the drug [7] - In the first nine months of 2025, Tzield recorded global product sales of €47 million, reflecting a 33.3% increase at constant exchange rates, with €44 million from the United States [8] Group 3: Stock Performance and Comparisons - Over the past year, Sanofi's shares have declined by 1.7%, contrasting with a 21.9% rise in the industry [4] - Sanofi currently holds a Zacks Rank of 3 (Hold), while competitors like Amicus Therapeutics and Indivior have stronger rankings, with Indivior's stock increasing by 208.3% over the past year [9][10]

Summary of Sanofi's Presentation at JP Morgan Healthcare Conference Company Overview - **Company**: Sanofi - **Event**: JP Morgan Healthcare Conference - **Key Speakers**: Paul Hudson (CEO), François-Xavier Roger (CFO), Houman Ashrafian Core Industry Insights - **Growth Rate**: Sanofi reported an 8.7% growth through Q3, with expectations of approaching double-digit growth in the near future, potentially maintaining this for over five years [8][9] - **Blockbuster Products**: The company has launched Altuvio, generating close to $4 billion in revenue, aimed at offsetting potential losses from Dupixent [8] - **R&D Challenges**: Sanofi acknowledged challenges in R&D but emphasized ongoing transformation and modernization efforts [9] Financial Outlook - **Earnings Growth**: The company aims to grow EPS despite the anticipated loss of exclusivity (LOE) for Dupixent [9] - **Diversified Growth Profile**: Growth is expected to be well-diversified, with Dupixent contributing about one-third, existing marketed products another third, and new launches the final third [24] - **Profitability Focus**: Sanofi is committed to profitable growth, with expectations for gross margin increases and disciplined spending [24][25] Pipeline and R&D Developments - **Upcoming Trials**: Significant readouts are expected in immunology, including Amlitelimab and Dupixent data later in the year [10][12] - **Combination Therapies**: Sanofi is exploring combination therapies in asthma and other areas, indicating a strong commitment to rare diseases and oncology [11][12] - **New Mechanisms**: The company is open to adding new mechanisms to its portfolio, including bispecifics and other innovative treatments [46][47] Regulatory and Market Challenges - **U.S. Pricing Policy**: Sanofi is navigating complex U.S. pricing negotiations, with a focus on maintaining manageable impacts on their business [15][16] - **Vaccine Policy**: The company is adapting to changing vaccine policies, particularly regarding Beyfortus and RSV, emphasizing the importance of real-world evidence for market acceptance [20][21][70][71] Product Launches and Market Performance - **Beyfortus**: Lauded as the most successful pediatric vaccination launch, with strong efficacy and quick market acceptance due to its cost-effectiveness for healthcare systems [71][72] - **Dupixent**: Continues to show strong growth, with expectations of maintaining its position as a dominant player in the market [62][63] - **Altuvio**: Positioned to become a blockbuster, offering a unique treatment option for patients with hemophilia [66][68] Strategic Business Development - **M&A Discipline**: Sanofi remains disciplined in business development and M&A, focusing on high-quality programs and maintaining a strong balance sheet [30][31] - **Future Investments**: The company is looking to invest in therapeutic areas and potentially white spaces, with no immediate pressure to act [30] Conclusion Sanofi is positioned for sustained growth through a diversified product pipeline, strategic R&D investments, and a focus on profitability. The company is navigating regulatory challenges while capitalizing on successful product launches and maintaining a disciplined approach to business development.

Investment Rating - The report indicates a positive investment outlook for the pharmaceutical sector, with the overall performance of the Shenwan Pharmaceutical and Biological Index increasing by 7.8% during the week, outperforming the Shanghai Composite Index which rose by 3.82% [2][3]. Core Insights - The pharmaceutical sector's overall valuation stands at 30.6 times earnings, ranking 10th among 31 Shenwan primary industries [5]. - The report highlights significant developments in the long-term care insurance system transitioning from pilot programs to full establishment during the 14th Five-Year Plan, with coverage reaching nearly 300 million people and fund expenditures exceeding 100 billion yuan by the end of 2025 [11]. - Notable advancements in drug commercialization include the launch of Novo Nordisk's oral GLP-1 weight loss drug Wegovy in the U.S., with monthly costs ranging from $149 to $299 for self-paying patients [13][14]. - Moderna has submitted a New Drug Application (NDA) for its seasonal flu vaccine mRNA-1010, showing promising efficacy results in clinical trials [15]. - Arrowhead has reported positive mid-stage results for its RNAi therapies ARO-INHBE and ARO-ALK7, demonstrating significant reductions in visceral and liver fat [16][17]. - GSK's hepatitis B drug Bepirovirsen has shown statistically significant functional cure rates in its Phase III trials [18]. - Recent approvals for innovative drugs in China include BeiGene's BCL-2 inhibitor and Sanofi's APOC3 siRNA drug, which addresses familial chylomicronemia syndrome [19][21]. Summary by Sections Market Performance - The Shenwan Pharmaceutical and Biological Index increased by 7.8%, ranking 6th among 31 Shenwan primary industries [2][3]. - Various sub-sectors showed positive growth, with medical devices and medical outsourcing leading with increases of 10.8% and 11.1%, respectively [5]. Industry Dynamics - The long-term care insurance system is set to expand significantly, with a focus on providing care for the elderly and disabled [11][12]. - The report emphasizes the importance of innovation in drug development, particularly in RNAi therapies and small nucleic acid drugs, which are gaining traction in clinical settings [16][18]. Company Developments - Significant partnerships and collaborations are highlighted, such as the $8.88 billion research collaboration between Insilico Medicine and Servier focusing on oncology [20]. - The report notes the successful commercialization of several new drugs, including BeiGene's and Sanofi's recent approvals, which are expected to impact market dynamics positively [19][21]. - The establishment of new companies and subsidiaries, such as the brain-computer interface subsidiary by Xinwei Medical, indicates a strategic shift towards innovative technologies in healthcare [22].

Group 1 - Sanofi is considered one of the most undervalued blue chip stocks currently available for investment [1] - Barclays downgraded Sanofi from 'Overweight' to 'Equal Weight' with a price target of EUR 85, citing concerns over limited late-stage pipeline depth and the impending loss of exclusivity for Dupixent [2] - The FDA accepted a supplemental BLA for Tzield for priority review, which could extend its use in children with stage 2 type 1 diabetes, with a decision expected by April 29, 2026 [3] Group 2 - TD Cowen reiterated a 'Hold' rating for Sanofi, highlighting pipeline risks and anticipating a sharp decline in long-term sales despite diversification from the Dynavax acquisition [4]