Sanofi Eyes €25B Dupixent Future, Expands M&A Hunt Ahead of Patent Loss

Sanofi is prioritizing continued growth in Specialty Care while preparing for the loss of exclusivity of Dupixent in the early part of the next decade, according to Manuela Buxo, the company’s executive vice president and head of Specialty Care. Speaking at a Morgan Stanley fireside chat, Buxo said the company’s two main objectives are sustaining its current commercial momentum through the rest of the decade and building the foundation for growth beyond Dupixent’s anticipated loss of exclusivity. She described Specialty Care as a central contributor to Sanofi’s current performance and said the company is pursuing stronger R&D productivity alongside business-development and M&A activity. Sanofi has identified immunology, rare diseases and vaccines as core strategic areas. The company is also conducting an enterprise strategy review to determine whether it should add a fourth therapeutic focus, Buxo said. That decision is expected in the coming months, though she did not identify a leading candidate among potential areas such as neurology, ophthalmology or oncology. Buxo said Sanofi remains interested in early-stage scientific opportunities but has added greater emphasis on later-stage and commercial-stage transactions. The company will evaluate targets based on scientific quality, strategic fit, differentiation, unmet medical need and financial returns. “Both of it is possible,” Buxo said when asked whether Sanofi could pursue a series of smaller transactions or one transformative deal. “We are looking at larger deals. We are looking at more small to medium-sized deals and a combination of those.” She declined to reiterate previously discussed financial capacity figures, but said Sanofi’s balance sheet and cash generation could support larger transactions or multiple smaller deals while maintaining financial discipline. The company is working to become more nimble in its dealmaking process through a smaller executive committee, coordination with its board and the arrival of new R&D head Paulo Fontoura, she said. China remains a commercial market and a potential source of innovation, according to Buxo. She said Sanofi has launched Dupixent, SARCLISA and Qfitlia in China, while also considering local opportunities that may fall outside its global strategic focus. The company also sees potential for Chinese R&D and partnerships to support global innovation, although pricing pressure remains a consideration in the market. Buxo said Sanofi’s ongoing litigation with Regeneron is separate from the companies’ operational relationship. She characterized the legal matter as narrow and in early stages, while des...