Financial Data and Key Metrics Changes - Net sales increased by 10.1% at constant exchange rates in Q2, primarily driven by immunology, biopharma launches, and Befortus [16][26] - Business EPS was €1.59, up 8.3%, reflecting strong sales performance and improved gross margin [18][26] - Gross margin improved by 1.5 percentage points, largely due to an improved product mix and efficiencies [16][18] Business Line Data and Key Metrics Changes - New launches generated close to €1,000,000,000 in sales, representing 10% of total sales [7][10] - Dupixent sales reached €3,800,000,000, up 21% in Q2, driven by strong demand across geographies [10][11] - Vaccine business sales increased by 10.3%, benefiting from the late flu season in the Northern Hemisphere [11][12] Market Data and Key Metrics Changes - Dupixent sales in the U.S. reached €2,800,000,000, up 22.7%, leading in new to brand prescriptions [10] - Outside the U.S., sales exceeded $1,000,000,000, driven by volume growth in key markets [10] - Anticipated sales split for flu vaccines is about 75% in Q3 and 25% in Q4, with total sales expected to decrease by a mid-teens percentage due to competitive pressures [25][26] Company Strategy and Development Direction - The company refined its 2025 sales guidance to high single-digit percentage growth at constant exchange rates, reflecting confidence in growth drivers [6][26] - The completion of the Blueprint Medicines acquisition strengthens the company's position in rare immunology diseases [13][14] - The company is committed to sustainability, aiming for all new medicines and vaccines to incorporate eco-design principles by 2025 [15][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year business outlook, supported by strong performance from growth drivers [6][26] - The company is navigating uncertainties from potential U.S. tariffs and EU exports, with updates to be provided as more information becomes available [27][28] - Management remains optimistic about the pipeline and the potential for new product launches to drive future growth [41][45] Other Important Information - R&D expenses increased by 17.7% due to a lower base of comparison last year, with underlying R&D expenses up around 7% [17][18] - The company is executing a €5,000,000,000 share buyback program in 2025, with over 80% already completed [21][22] Q&A Session Summary Question: R&D transformation and pipeline progress - Management acknowledged the progress in R&D but noted that the share price is lagging, awaiting further pipeline developments [41][42] - Confidence remains in the Phase III trials and the potential for achieving €10 billion in sales by 2030 [42][43] Question: Development spend and margin outlook - R&D expenses are expected to be slightly up in H2, with SG&A increasing at half the rate of sales growth [50][52] - Management anticipates BOI margin growth alongside absolute growth in the coming years [54][56] Question: Dupixent performance in China - Dupixent has seen over 30% volume growth in China, despite pricing pressures [58][59] Question: Expectations for amlitilumab and tariffs - The company has not factored potential tariff impacts into its 2025 guidance, expecting limited effects due to existing inventory [63][64] - Amlitilumab is expected to provide comparable efficacy to existing treatments with a longer dosing interval [66][67]

Financial Data and Key Metrics Changes - Net sales increased by 10.1% at constant exchange rates in Q2 2025, primarily driven by immunology, biopharma launches, and Befortus [15][25] - Business EPS was €1.59, up 8.3%, reflecting strong sales performance and improved gross margin [15][25] - Gross margin improved by 1.5 percentage points due to an improved product mix and efficiencies [15] Business Line Data and Key Metrics Changes - New launches generated close to €1,000,000,000 in sales, representing 10% of total sales [6][7] - Dupixent sales reached €3,800,000,000, up 21% in Q2, driven by strong demand across geographies [7][8] - Vaccine business sales increased by 10.3%, benefiting from the late flu season in the Northern Hemisphere [9][10] Market Data and Key Metrics Changes - Dupixent sales in the U.S. reached €2,800,000,000, up 22.7%, leading in both new to brand prescriptions and total prescriptions [8] - Outside the U.S., sales exceeded $1,000,000,000, driven by volume growth in key markets [8] - Anticipated sales split for flu vaccines is about 75% in Q3 and 25% in Q4, with total sales expected to decrease by a mid-teens percentage due to competitive pressures [24][25] Company Strategy and Development Direction - The company refined its 2025 sales guidance to high single-digit percentage growth at constant exchange rates, reflecting confidence in growth drivers [5][25] - The completion of the Blueprint Medicines acquisition strengthens the company's position in rare immunology diseases and enhances its pipeline [12][18] - The company is committed to sustainability, aiming for all new medicines and vaccines to incorporate eco-design principles by 2025 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year business outlook, supported by strong performance from growth drivers [5][25] - The company is navigating uncertainties from potential U.S. tariffs and EU exports, with updates to be provided as more information becomes available [26] - Management highlighted the importance of maintaining a strong market share despite competitive pricing pressures in the flu vaccine market [24][25] Other Important Information - The company is executing a €5,000,000,000 share buyback program in 2025, with over 80% already completed [20] - The anticipated negative year-on-year BOI impact from Regeneron reimbursement is approximately €300,000,000 in 2026 and €800,000,000 in 2027 [22] Q&A Session Summary Question: R&D transformation and pipeline progress - Management acknowledged the progress in R&D but noted that the share price is lagging, indicating a need for pipeline advancements [42][43] - Confidence remains in achieving the targeted increase in Phase III trials and the potential for significant sales by 2030 [43][46] Question: Development spend and pricing pressures - R&D expenses are expected to be slightly up in H2, with SG&A increasing at half the rate of sales growth [51][55] - Management confirmed that pricing pressures in the flu market are being addressed, with expectations for continued market share despite competitive dynamics [72][75] Question: Dupixent growth in China - Dupixent has seen over 30% volume growth in China, with management optimistic about future growth despite pricing pressures [60][62] Question: Expectations for amlitelemab and tariffs - Management emphasized the importance of efficacy and treatment duration for amlitelemab in the atopic dermatitis market [68][69] - No significant impact from tariffs is expected for 2025 due to existing inventory [66][67]

Core Insights - Sanofi reported a strong financial performance in Q2, with revenues reaching €10 billion (approximately $11.4 billion), marking a 10.1% increase year-over-year [1] - For the first half of the year, total revenues amounted to €19.889 billion (approximately $22.6 billion), reflecting a growth of 9.9% [1] - The company invested €3.717 billion (approximately $4.2 billion) in R&D, which constitutes 18.7% of total revenues [1] Revenue Breakdown - In the U.S. market, Sanofi generated the highest revenue of €9.535 billion (approximately $10.88 billion), a growth of 16.4% [3] - European sales reached €4.144 billion (approximately $4.72 billion), growing by 1.8% [3] - Revenue from the Chinese market was €1.388 billion (approximately $1.58 billion), with a minimal growth of 0.1% [3] Strategic Transformation - Since 2020, Sanofi has undergone significant restructuring to shift from a diabetes-focused company to a leader in immunology, reallocating resources towards immunology and inflammation [3] - The sales of Dupixent, a key product in the immunology sector, reached €7.312 billion (approximately $8.3 billion) in the first half of the year, with a year-over-year growth of 20.7% [3] Product Performance - Sales for the COPD treatment, Dupixent, reached €3.8 billion, while newly launched products generated €900 million in sales [3] - Vaccine sales totaled €1.214 billion in Q2, reflecting a growth of 10.3%, and €2.54 billion for the first half, with a growth of 10.9% [5] - The primary contributors to vaccine revenue included the PPH vaccine, which generated €1.361 billion, accounting for over half of the vaccine income [5] Investment in Rare Diseases - Sanofi has focused on the rare disease sector, launching 12 products including Altuviiio for hemophilia A, which achieved sales of €542 million in the first half of the year [4] - Another significant product in the hemophilia sector is an RNAi therapy that generated $1 million in revenue within three months of its launch [4] Future Prospects - Sanofi is increasing investments in the vaccine sector, having agreed to acquire Vicebio for up to $1.6 billion to enhance its vaccine development capabilities [5] - The company has 82 projects in its R&D pipeline across four major disease areas, with potential milestones expected in the second half of 2025 [6]

Financial Performance - Sanofi reported Q2 2025 net sales of €10 billion, a 10.1% increase at CER [16] - Gross profit increased by 12.4% to €7.742 billion, with a gross margin of 77.5% [59] - Business EPS grew by 8.3% to €1.59, reflecting operating income growth and lower share count from buyback [59, 61] - The company refines 2025 sales guidance to high single-digit percentage growth [15, 19] Key Products & Pipeline - Dupixent sales reached €3.832 billion in Q2 2025, a 21.1% increase [16, 119] - Vaccines sales grew by 10.3%, driven by Beyfortus [16] - Pharma launches contributed €969 million to sales [21] - Ayvakit sales increased by 52.5% [43] Strategic Initiatives - Sanofi is actively redeploying capital through organic investment, BD/M&A, growing dividend, and share buyback [62] - The company completed the acquisition of Blueprint Medicines on July 17, 2025 [46, 64] - Sanofi is reducing environmental impact across the portfolio, with reductions in carbon footprint, water use, and resource depletion [50]

Group 1 - Sanofi's stock dropped over 4% in pre-market trading, reaching $47.23, following the release of its Q2 earnings report [1] - The company reported Q2 sales of €9.994 billion, meeting expectations with a year-on-year growth of 6%, and a 10.1% increase at constant exchange rates [1] - Excluding one-time items, the operating profit for the quarter was €2.461 billion, which fell short of the expected €2.57 billion due to rising R&D costs and higher profit-sharing with partner Regeneron Pharmaceuticals [1] Group 2 - Driven by strong demand for its flagship anti-inflammatory drug Dupixent, vaccines, and new therapies, Sanofi raised its full-year sales guidance, now expecting high single-digit growth instead of mid to high single-digit growth at constant exchange rates [1] - The company confirmed its forecast for a low double-digit growth in net profit for the year, which includes all expenses related to newly acquired businesses [1]

Group 1 - The meeting between the Vice President of China Council for the Promotion of International Trade, Nie Wenhui, and the Vice President of Sanofi Group for Greater China, Zhu Hailuan, focused on enhancing Sino-French corporate exchanges [1] - Discussions included promoting international cooperation in industrial and supply chains [1] - The meeting aimed to better serve foreign enterprises' development in China [1]

Core Viewpoint - Sanofi's SAR446523, a GPRC5D monoclonal antibody, has received orphan drug designation from the FDA for the treatment of relapsed or refractory multiple myeloma, highlighting the company's commitment to developing innovative therapies for this rare disease [1][2]. Group 1: Product Information - SAR446523 is an investigational IgG1-based monoclonal antibody designed to target GPRC5D, which is highly expressed on plasma cells, and aims to enhance antibody-dependent cellular cytotoxicity [3]. - The drug is currently undergoing a phase 1 clinical study in patients with relapsed or refractory multiple myeloma, with the clinical study identifier NCT06630806 [3]. Group 2: Disease Context - Multiple myeloma is the second most common hematologic malignancy, with over 180,000 new diagnoses globally each year, yet it remains incurable with a five-year survival rate of approximately 62% for newly diagnosed patients [4]. - There is a significant need for new therapeutic options, particularly for patients who are ineligible for transplants, due to high attrition rates in subsequent lines of therapy [4]. Group 3: Company Commitment - Sanofi is dedicated to advancing oncology treatments and aims to transform cancer care through the development of innovative therapies for rare and difficult-to-treat cancers [5]. - The company emphasizes its commitment to addressing urgent healthcare challenges and improving the lives of patients through its research and development efforts [6].

Core Viewpoint - Sanofi's SAR446523, a GPRC5D monoclonal antibody, has received orphan drug designation from the FDA for the treatment of relapsed or refractory multiple myeloma, highlighting the company's commitment to developing innovative therapies for this rare disease [1][2]. Group 1: Product Information - SAR446523 is an investigational IgG1-based monoclonal antibody designed to target GPRC5D, which is highly expressed on plasma cells, and aims to enhance antibody-dependent cell-mediated cytotoxicity [3]. - The drug is currently undergoing a phase 1 clinical study in patients with relapsed or refractory multiple myeloma, with the clinical study identifier NCT06630806 [3]. Group 2: Disease Context - Multiple myeloma is the second most common hematologic malignancy, with over 180,000 new diagnoses globally each year, yet it remains incurable with a five-year survival rate of approximately 62% for newly diagnosed patients [4]. - There is a significant need for new therapeutic options, particularly for patients who are ineligible for transplants, due to high attrition rates in subsequent lines of therapy [4]. Group 3: Company Commitment - Sanofi is dedicated to advancing oncology treatments and aims to transform cancer care through innovative therapies for rare and difficult-to-treat cancers [5]. - The company emphasizes its long-standing commitment to oncology and the development of first and best-in-class immunological and targeted therapies [5][6].

Core Insights - Americans are likely not saving enough for a comfortable retirement, with the median retirement savings at $87,000 as of 2022, indicating a significant portion of the population is underprepared [1][2] Group 1: Recursion Pharmaceuticals - Recursion Pharmaceuticals has developed an AI-powered platform that can virtually test drugs, significantly reducing the time and cost associated with traditional clinical trials, leveraging 36 petabytes of data [5][6] - The technology is already being utilized by major pharmaceutical companies like Roche and Sanofi, which enhances its credibility and market potential [6] - The company is currently unprofitable but is expected to reach a turning point in revenue and profitability, with the AI drug-development industry projected to grow at an annualized rate of nearly 32% through 2030 [8] Group 2: Shopify - Shopify enables businesses to create their own e-commerce platforms, facilitating $292.3 billion in sales in the previous year, a 24% increase year-over-year [11][14] - The global retail market is still largely untapped online, with only about 20% of spending occurring through e-commerce, indicating significant growth potential for Shopify [13][14] - Analysts predict Shopify will achieve approximately 20% top-line growth over the next three years, reflecting its strong market position [14] Group 3: Nio - Nio, a Chinese electric vehicle manufacturer, delivered 72,056 cars in Q2, marking a nearly 26% increase from the previous year, showcasing its production growth [16][20] - The electric vehicle market in China is thriving, with sales increasing by 25% to 1.1 million units last month, representing over half of the country's total automobile sales [17][19] - The International Energy Agency forecasts that EVs will account for 80% of China's car sales by 2030, supported by favorable policies, indicating a robust growth trajectory for Nio [19][20]

Core Insights - Sanofi's Sarclisa has received approval from the European Commission for the treatment of transplant-eligible newly diagnosed multiple myeloma (NDMM) in combination with bortezomib, lenalidomide, and dexamethasone [1][8] - The approval is based on positive results from the GMMG-HD7 phase 3 study, which demonstrated significant improvements in minimal residual disease (MRD) negativity and progression-free survival (PFS) for patients treated with Sarclisa-VRd compared to VRd alone [2][3][8] Study Details - The GMMG-HD7 study is a pivotal, randomized, open-label, multicenter, two-part phase 3 study evaluating Sarclisa in combination with VRd versus VRd alone in transplant-eligible NDMM patients [6][7] - The study enrolled 662 patients across 67 sites in Germany, with the first part focusing on induction therapy and the second part on maintenance therapy post-transplant [7][8] - The primary endpoints included MRD negativity after induction therapy and PFS after the second randomization post-transplant [8][9] Clinical Results - Sarclisa-VRd showed a statistically significant improvement in MRD negativity, with 53.1% of patients achieving continued MRD negativity compared to 38% in the control arm [3][8] - The final PFS analysis indicated a clinically meaningful improvement in PFS for patients treated with Sarclisa-VRd during induction, regardless of the maintenance therapy received [3][8] Regulatory and Market Position - With this approval, Sarclisa is now recognized as an established treatment option for multiple myeloma, with four approved indications globally, including two in the front-line setting [5][11] - The approval reflects Sanofi's commitment to addressing unmet needs in multiple myeloma care and improving treatment outcomes at every stage of the disease [5][12]