Sanofi 2Q‘26 Results - Second Opinion

Research evidence excerpt

Sanofi 2Q‘26 Results - Second Opinion

Global Research

31 July 2026ab

Sanofi Equities

France2Q'26 Results - Second Opinion

Pharmaceuticals

12-month rating Neutral

UBS view: Change takes time

Our Neutral position on Sanofi recognises the significant valuation gap to peers, but 12m price target €78.00

focuses on the scale of the pipeline replacement power gap given the dominance of Prior : €88.00

Dupixent to the P&L. The three stages of problem solving are well rehearsed: 1)

Price (30 Jul 2026) €72.77

Understand the Problem, 2) Develop Solutions and 3) Implement. The fact that Sanofi

has reached Stage 1) is a real milestone in our view. It is better than defending a pipeline RIC: SASY.PA BBG: SAN FP

of mediocre assets. But Sanofi is now an inevitable waiting game for Stage 2) and 3) of

Trading data and key metrics

the problem solving process. In our view, expecting answers this early was unrealistic.

52-wk range €90.44-72.49

Now we have to wait and see what solutions the management team decides upon. From

the call, it sounds like more strategic commentary may come at 3Q results when the new Market cap. €87.9b/US$101b

Head of R&D is onboard. For now, we see better opportunities in the sector. Shares o/s 1,208m (ORD)

Free float 89%

Changes to forecasts Avg. daily volume ('000) 2,548

We raise average 2026-30E sales by 1.8%, Core EBIT by 1% and Core EPS unchanged Avg. daily value (m) €191.7

(higher tax). Higher Dupixent US net price is the key driver on the topline, but that also Common s/h equity (12/26E) €73.9b

increases the REGN profit payaway faster which holds back EBIT. We assume higher tax P/BV (12/26E) 1.2x

is sustained as Sanofi will have fewer R&D credits while the pipeline is weak. For 2026 Net debt to EBITDA (12/26E) 1.1x