First Read Sanofi Feedback from Post-2Q26 sell-side breakfast

Research evidence excerpt

First Read Sanofi Feedback from Post-2Q26 sell-side breakfast

Forecast returns

Forecast price appreciation 20.9%

Forecast dividend yield 6.2%

Forecast stock return 27.2%

Market return assumption 7.8%

Forecast excess return 19.4%

Company Description

Sanofi is a French pharmaceuticals company with three divisions: pharma, vaccines and

consumer health. Key franchises in pharma are immunology and rare diseases. Sanofi has a

collaboration with Regeneron, which has yielded drugs such as Praluent (cholesterol

lowering), Dupixent (atopic dermatitis and other conditions) and Kevzara (rheumatoid

arthritis). Dupixent in particular is a blockbuster (26% of sales in 2025), with a peak sales

target of EUR13bn. Recent M&A activity includes the acquisition of Provention Bio in 2023 to

further strengthen the group's autoimmune portfolio.

Valuation Method and Risk Statement

All biopharma companies face risks around R&D pipeline success/failure, regulatory oversight

& approval decisions, PBM/country drug pricing negotiations, competitor product

developments, patent challenges and product liability. Sanofi company-specific risks include:

(1) increased volume/price Dupixent competition in atopic dermatitis from the launch of new

entrants; (2) higher/lower than expected market penetration for new launches Altuviiio and

Beyfortus; (3) accelerating investment in R&D to drive Dupixent replacement power; (4)

increased Vaccine opt-out by patients in the US market following changes to CDC vaccination

schedule.

Valuation: We value Sanofi based on a multiple of 2026/27E underlying UBS EPS, informed by

peer valuations, growth relative to peers and our Pharma Values NPV.

Regeneron Pharmaceuticals Inc:

REGN Valuation method: Our price target is derived using a 1-year forward P/E multiple,