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1. Company Snapshot

1.a. Company Description

Sanofi, together with its subsidiaries, engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, and internationally.It operates through three segments: Pharmaceuticals, Vaccines, and Consumer Healthcare.The company provides specialty care products, including human monoclonal antibodies; products for multiple sclerosis, neurology, other inflammatory diseases, immunology, rare diseases, oncology, and rare blood disorders; medicines for diabetes; and cardiovascular and established prescription products.


It also supplies poliomyelitis, pertussis, and hib pediatric vaccines; and influenza, adult booster, meningitis, and travel and endemic vaccines.In addition, the company offers allergy, cough and cold, pain, liver care, physical and mental wellness, probiotics, digestive, and nutritional products; and other products, such as daily body lotions, anti-itch products, moisturizing and soothing lotions, and body and foot creams, as well as powders for eczema.Further, it has various pharmaceutical products and vaccines in development stage.


Sanofi has collaboration agreement with GlaxoSmithKline to develop a recombinant Covid-19 vaccine; and a research collaboration with Stanford University School of Medicine to advance the understanding of immunology and inflammation through open scientific exchange.It also has a collaboration and license option agreement with Prellis Biologics, Inc.The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011.


Sanofi was founded in 1973 and is headquartered in Paris, France.

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1.b. Last Insights on SAN

Sanofi's recent performance has been driven by several positive factors. The company's pipeline has been highlighted as a key strength by analysts, with Bank of America Securities maintaining a Buy rating and a price target of €115. Additionally, Sanofi has expanded its product pipeline through multi-billion acquisitions, despite missing Q2 earnings sales expectations. The company has also received FDA approval for its rare disease therapy, Waylivra, and has entered into a licensing agreement with Novavax to use its Matrix-M adjuvant in a pandemic influenza vaccine candidate program. Furthermore, Berenberg analysts note that Sanofi's profitability is healthier than it appears due to an accounting change.

1.c. Company Highlights

2. Sanofi's 2025 Performance: Strong Growth and Profitable Expansion

Sanofi's Q4 and full-year 2025 performance demonstrated robust growth, with sales reaching €11.3 billion and €43.6 billion, respectively. The company's business EPS grew by 26.7% in Q4 and 12.2% for the full year, driven by the successful launch of new medicines, including ALTUVIIIO, Qfitlia, and Wayrilz, which collectively grew by 34% in 2025. Dupixent, a key growth driver, achieved €4.2 billion in Q4 sales and €15.7 billion in annual sales, with over 30% growth in patients over the past year. The vaccine franchise, led by Beyfortus, recorded €1.8 billion in sales, with 9.5% growth. The company's free cash flow was €8.1 billion, representing 18.5% of sales.

Publication Date: Feb -02

📋 Highlights
  • 2025 Full-Year Sales:: Reached €43.6 billion, with Q4 sales at €11.3 billion, reflecting strong growth.
  • Dupixent Performance:: Achieved €15.7 billion annual sales (up 30% in patients) and €4.2 billion Q4 sales.
  • New Launches Growth:: ALTUVIIIO, Qfitlia, and Wayrilz grew 34% in 2025, driving portfolio expansion.
  • EPS Growth:: Business EPS rose 26.7% in Q4 and 12.2% annually, supported by strong sales and free cash flow of €8.1 billion.
  • 2030 Sales Target:: Aims for $22 billion in sales, guided by pipeline advancements and strategic capital allocation (e.g., €5 billion share buyback in 2025, dividend increase to €4.12).

Financial Highlights and Guidance

Sanofi's financial performance was characterized by a business EPS growth of 26.7% in Q4 and 12.2% for the full year. The company's guidance for 2026 includes high single-digit growth in sales and business EPS growth slightly faster than sales. The company expects vaccine sales to decline slightly, with Beyfortus growth assumed to be part of the overall vaccine guidance. As François-Xavier Roger mentioned, the company is confident in its ability to deliver profitable growth over the next five years.

Pipeline Updates and Regulatory Progress

Sanofi reported positive Phase III results for amlitelimab in atopic dermatitis and Dupixent in allergic fungal rhinosinusitis. The company obtained 20 regulatory approvals and 22 acceptances in 2025, including 9 priority reviews. Sanofi expects multiple regulatory submissions and decisions in 2026 and 2027, driven by its diversified pipeline.

Valuation and Growth Expectations

With a P/E Ratio of 12.43 and an EV/EBITDA of 9.94, Sanofi's valuation appears reasonable. Analysts estimate next year's revenue growth at 6.4%. The company's ROE (%) is 10.68, and ROIC (%) is 11.43, indicating a strong ability to generate returns. Sanofi's dividend yield is 4.95%, providing a relatively attractive income stream.

Capital Allocation and Business Development

Sanofi has a strong balance sheet, providing flexibility for business development. The company will focus on strategic opportunities in its four main therapeutic areas, plus potential white spaces, seeking scientific differentiation and financial returns. Sanofi has an upper limit of €15 billion for business development, which is a technical limitation to preserve its AA rating.

Outlook and Conclusion

Sanofi's strong performance in 2025, driven by the successful launch of new medicines and the growth of Dupixent, positions the company for continued profitable expansion. With a robust pipeline and a strong balance sheet, Sanofi is well-positioned to deliver long-term growth and create value for shareholders.

3. NewsRoom

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Manuela Buxo To Become Head of Sanofi’s (SNY) Specialty Care Global Business Unit

Feb -20

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Ex-Trump official-ran Altesa secures $75m in Series B funding round

Feb -20

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Alopecia Areata Market Set to Expand by 2036, Due to the Emergence of Novel Drug Classes Such as OX40L Inhibitors, IL-2 Inhibitors, IL-7Rα, and Others | DelveInsight

Feb -19

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Altesa BioSciences Closes Oversubscribed $75 Million Series B Financing to Transform Treatment of Chronic Lung Diseases

Feb -19

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Global Amyotrophic Lateral Sclerosis Therapeutics Market Size/Share Worth USD 1964 Million by 2035 at 11.5% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value, SWOT Analysis)

Feb -19

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Impact Podcast with John Shegerian Announces All-Star Roster for New Season

Feb -19

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End of Apogee (APGE) Drug Collaboration Leads to Revised Analyst Expectations

Feb -19

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Renowned Filmmaker and Creative Director Dr. Bob Gordon Joins Immorta Bio Strategic Advisory Board

Feb -18

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.49%)

6. Segments

Biopharma

Expected Growth: 6.5%

Sanofi's Biopharma growth of 6.5% is driven by strong performances of Dupixent (eczema treatment) and innovative pipeline assets. Increasing demand for biologics, expanding into new markets, and strategic partnerships contribute to this growth. Dupixent's sales growth and recent FDA approvals of new treatments, such as SAR440340, further boost the segment's performance.

Others

Expected Growth: 4.8%

Sanofi's growth of 4.8% is driven by strong performance in its pharmaceutical and vaccine segments, particularly with blockbuster drugs like Dupixent and Toujeo. Additionally, the company's consumer healthcare and emerging markets segments contribute to its growth, fueled by increasing demand for its products in these areas.

7. Detailed Products

Vaccines

Sanofi's vaccine portfolio includes vaccines for influenza, pertussis, polio, and other diseases.

Diabetes Care

Sanofi's diabetes care products include insulin and other treatments for type 1 and type 2 diabetes.

Rare Diseases

Sanofi's rare disease treatments include therapies for Fabry disease, Pompe disease, and other rare genetic disorders.

Multiple Sclerosis

Sanofi's multiple sclerosis treatments include therapies to slow disease progression and manage symptoms.

Oncology

Sanofi's oncology products include therapies for various types of cancer, including breast, lung, and prostate cancer.

Immunology

Sanofi's immunology products include therapies for autoimmune diseases such as rheumatoid arthritis and lupus.

Consumer Healthcare

Sanofi's consumer healthcare products include over-the-counter medications and vitamins for various health needs.

8. Sanofi's Porter Forces

Forces Ranking

Threat Of Substitutes

Sanofi faces moderate threat from substitutes due to the presence of alternative treatments and generics in the pharmaceutical industry.

Bargaining Power Of Customers

Sanofi's customers, including patients and healthcare providers, have limited bargaining power due to the company's strong brand presence and diversified product portfolio.

Bargaining Power Of Suppliers

Sanofi's suppliers, including contract manufacturers and raw material providers, have moderate bargaining power due to the company's dependence on them for high-quality inputs.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant R&D investments and regulatory hurdles, making it difficult for new entrants to challenge Sanofi's market position.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players, including Pfizer, Novartis, and Roche, competing with Sanofi for market share and innovation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.37%
Debt Cost 6.16%
Equity Weight 81.63%
Equity Cost 6.16%
WACC 6.16%
Leverage 22.51%

11. Quality Control: Sanofi passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Novartis

A-Score: 6.5/10

Value: 3.0

Growth: 4.2

Quality: 8.3

Yield: 7.5

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
GSK

A-Score: 6.3/10

Value: 4.7

Growth: 2.2

Quality: 7.1

Yield: 6.9

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Sanofi

A-Score: 5.9/10

Value: 6.2

Growth: 4.0

Quality: 8.0

Yield: 7.5

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
AstraZeneca

A-Score: 5.9/10

Value: 1.3

Growth: 7.6

Quality: 6.8

Yield: 3.1

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Roche

A-Score: 5.4/10

Value: 1.1

Growth: 3.0

Quality: 6.4

Yield: 5.6

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Bayer

A-Score: 4.4/10

Value: 7.0

Growth: 2.1

Quality: 2.7

Yield: 3.1

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

79.51$

Current Price

79.51$

Potential

-0.00%

Expected Cash-Flows