Sanofi SA Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Graham Parry - Bank of America - Analyst : Great, thanks for taking my questions. So firstly on Beyfortus, so could you just confirm current guidance still only assumes the existing capacity and EUR1 billion of sales with approval of expanded supply being upside to that and then can you clarify the scale of the expanded capacity? So I think you've talked about two lines adding to one so can we just assume that's a tripling and can we read that your phasing comment on Beyfortus so more in fourth quarter and third quarter to mean that you might not have the manufacturing approved by the beginning of the season in September. And then secondly on Opella, just wondered if you could update us to the timelines in which you expect to be able to clarify to the market the route of separation as the sale versus spin and perhaps just help us understand the factors that go into the decision between the two at this stage. Thank you.

Question: Shirley Chang - Barclays - Analyst : Can you hear me? Thank you, Shirley Chang from Barclays asking questions for Emily Field. We have one question for flu vaccine. Can you please share with us the timeline for the COVID-19 and plus flu vaccine on the preparation with Novavax? In addition, how would you comment on the perspective of your vaccine over solo flu vaccine? Also notice you have a mRNA flu vaccine in Phase 1. How would this candidate provide potential synergy or other impacts on your current product launch time? Thank you.

Question: Seamus Fernandez - Guggenheim - Analyst : Thanks very much for the question. So I wanted to just drill into expectations for the COPD launch, hoping you could just provide us with a little bit of color on the trajectory of growth. We saw very strong growth from Dupixent in so many other launch categories, but this is a uniquely large one and just wanted to get some color there. And then just as a separate question, can you give us your thoughts on where you think the CD40 ligand has the most appropriate opportunity outside of multiple sclerosis? Thanks so much.

Question: Jo Walton - UBS - Analyst : Thank you. If I can return briefly to Beyfortus, I think we can work out for ourselves the level of demand in the US and assuming that you have capacity, how you might deal with that. But can you give us a sense of where demand is building outside of the US? Will there be significant new countries that you can supply this year or will other major markets really come in next year? So it's really trying to get a sense of the US, ex-US split. And on Fitusiran, which is now a filed asset, could you remind us where you think that's going to fit in for hemophilia space, please?

Question: Tim Anderson - Wolfe Research - Analyst : Thank you just on tolebrutinib just update on timing and then really what the most likely base case expectations should be I guess if I could distill it down to a single question. Do you think tolebrutinib will be approvable in some form or another based on the upcoming readouts or could it be a total zero? Thank you.

Question: Luisa Hector - Berenberg - Analyst : Hi there, thanks for taking my question. So on Dupixent and expansion into more indications. So first of all with CSU and doctors we speak to firstly absolutely love Dupixent and but they're also confident there is an effect in CSU. So I'm just wondering how we should think about study C, will it be sufficient for approval, what's the profile you're aiming for and how you put that in the context of the broader pipeline, rules of route and et cetera. And then perhaps just a comment on the UC Phase 2, when should you have the induction data in-house? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2024 / 12:30PM, SASY.PA - Q2 2024 Sanofi SA Earnings Call

Question: Florent Cespedes - Bernstein - Analyst : Good afternoon, Florent Cespedes from Bernstein. Two quick questions. First, a follow-up on Beyfortus. If you have the approval of the two manufacturing lines later this year, could you tell us how do you see the capacity for 2025 will be twice the current level you have today? So some color on this front would be great. Second question for Houman, which are in view the most important Phase 2 projects that will read out until the end of next year in your portfolio? It would be great to have this comment. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2024 / 12:30PM, SASY.PA - Q2 2024 Sanofi SA Earnings Call

Question: David Risinger - Leerink - Analyst : Yes. Thanks very much. And congrats on the strong second quarter execution. So I have two questions, please. First, assuming itepekimab generates compelling results in Phase 3 next year, could you please characterize the magnitude or multiple of its sales potential in COPD relative to Dupi in COPD? And second, could you also comment, Paul, on China's interest in Beyfortus and whether there's a potential path to launch in China late decade? Thank you.

Question: Gary Steventon - BNP Paribas Exane - Analyst : Hi, can you hear me now? Perfect, thank you. First question is just on vaccines. You're reiterating the mid -single digit growth target and also the Beyfortus blockbuster ambition, but there is a more refined low-single digit decline for flu, which is probably a bit weaker. So the question is on kind of where the other moving parts in vaccines are which still support the mid-single digit outlook. Is that purely just greater confidence in passing the Beyfortus blockbuster target offsetting flu, or is there something else in the wider portfolio to think about? And then secondly, just on Dupixent, could you just talk to how the performance of the approved indications is trending and that relative contribution to the unchanged EUR13 billion target for this year, and just whether there's any particular pockets of strength or weakness by indication relative to your expectations in that Dupixent number? Thank you.

Question: Ben Jackson - Jefferies - Analyst : Hi, thank you for the question. So firstly, on contracting for the Dupixent for 2025, are you able to give us any color on how the discussions with Fed have been going, considering the Part D redesign, but also the potential COPD indication by then? And then does the September approval versus the prior June expectation have any implications for inclusion and formulae for next year? And then secondly, if I may, we've obviously seen a quality to read out for a competitor to Beyfortus in the recent days. What gives you retained confidence in the differentiation of the asset and its commercial opportunity beyond perhaps just the compelling real world data that we've already seen? Thank you.

Question: Eric Berrigaud - Stifel - Analyst : Yes. Thank you. Two short questions. First, on the order revenue line into the P&L. We've seen less dynamic this quarter, but don't want to read too much into a quarter. Is there any chance you can guide us towards how we should see other revenues moving towards the end of the year and maybe for the following years? And then second question on Sarclisa, as you're moving closer to the launch of a very significant indication. So far, the drug is only a EUR1 billion in sales if we analyze where it is, but the in -roads indication is probably at least a couple of billion in potential. Could you maybe share the kind of costs and resources you're putting behind the upcoming launch and how you see competition versus Dara that should have CPU's data coming later. Third Q may be ready, but you're having a one year launch ahead of competition, and so how big could be that opportunity for the drug? Thank you.

Question: Peter Verdult - Citi - Analyst : Sorry jumping from one conference call to the other. Can you hear me? Good stuff. One for Houman and one for Paul, please just to end the call. Just to follow up on tolebrutinib, just given the absence of randomized Phase 2 data for an SPMS can you remind us why you are optimistic in this setting or is it just that it crosses the blood-brain barrier very well and is against placebo? And then Paul for you maybe I continue to at least swing the bat a little. Consensus has about 865 of earnings in for next year points to a very nice double-digit rebounding growth that for a stock trading on just 11 times. Now I realize this is not a forum or a guidance call for '25 but hopefully I can tempt you where you can't resist saying something or giving us a sense of your level of comfort where consensus sits. I know there are big swing factors, COPD, Beyfortus, GenMed but just wanted to kick the tide of you on where expectations sit for next year and the journey of growth for the remainder of the decade. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 25, 2024 / 12:30PM, SASY.PA - Q2 2024 Sanofi SA Earnings Call