We continue to grow our dividend and expect to maintain that policy including in 2024 and regardless of the proposed CHC separation. In summary, I’m confirming that our capital allocation policy remains unchanged. On Slide 28, as Paul already mentioned, given the potential we see in our pipeline, we plan to grow our R&D spend in ’24, up from around EUR 6.8 billion expected in ’23. The spending level is already higher compared to EUR 5.5 billion in 2020 and is mainly driven by the investment in vaccines, R&D on the mRNA Center of Excellence. In pharma, we also benefited from reallocating investments, first from cardiometabolic and lately from oncology. We expect a further step-up in R&D spend in 2024 as we start a number of exciting mid- to late-stage programs in immunology, MS and vaccines.
In 2025, we expect to be able to reallocate spending from completed Phase III programs such as tolebrutinib on the COPD programs to new programs either internally derived or from business development. The simplification and streamlining of the Gen Med portfolio continue at pace. We reached the target number of around 100 bonded product families this year, two years earlier than initially guided at our Capital Markets Day in December 2019. More than EUR 1.9 billion of cash proceeds were generated. Due to continued pricing headwinds across the portfolio of other products and increased competition in the — market, we will no longer aim to stabilize Gen Med sales in 2025 at the 2020 level, but instead, we’ll continue to reduce our portfolio to around 85 branded product families, thus allowing for further efficiencies.
On Slide 30, we are launching efficiency initiatives, targeting up to EUR two billion savings across Sanofi to free up operational resources and support the accelerated R&D investments. We will be prioritizing our oncology R&D program and focus on those with first or best-in-class potential, reallocating resources on growth drivers and strategic TAs. We will also leverage procurement to generate additional savings. Lastly, we will modernize the commercial delivery by optimizing our country setup, expanding the hub strategy to increase centralization while refocusing R&D on most critical sites on technology platforms. On Slide 31, we are providing a first outlook for ’24 and ’25. For ’24 and ’25, we expect continued sales growth supported by our leading franchise on launches for Dupixent based on the strong double-digit growth rate that we report again today.
We expect sales to reach close to EUR 13 billion in 2024. Vaccine sales are expected to grow mid- to-high single digit in both years as per our prior guidance. On the P&L side, OpEx is expected to grow in 2024 due to a step-up in R&D investments. Capital gains from product divestments are expected at a similar level as in 2023. Due to changes to global tax regulation, the Company’s effective tax rate is expected to increase to 21%. Looking further out into 2025, we expect to see the full benefit from the reallocation of our planned efficiencies initiative on a relatively stable R&D expenses year-on-year as several large Phase III trials in MS on COPD will mature over the period. As a result, Business EPS in 2024 is expected to decline low single digit at constant exchange rate or remain roughly stable, excluding the impact of the expected tax rate change followed by a strong business EPS rebound in 2025.
So Paul, back to you to conclude.
Paul Hudson: Thank you, JB. I want to conclude by stressing again the impressive progress we’ve made since the launch of our Play to Win strategy in 2019. We said we would deliver and we did. Today, we are reconfirming our 2030 goal to make Sanofi modern science-driven health care Company, an industry leader in immunology and in vaccines with greater than EUR 22 billion and EUR 10 billion of sales by 2030, respectively. We are confident in our improved R&D productivity, driving a pipeline made up of at least 70% biologics and the vast majority of products being best-in-class or first-in-class. This lays a promising foundation to bring three to 5 products to market with EUR two billion to EUR 5 billion peak sales potential each in the second half of the decade.
We’re in a unique position compared to our competitors with a portfolio uncompromised by a meaningful loss of exclusivity for the remainder of the decade. We are looking forward to the long-term growth prospects opened by our decision to increase our R&D investments. With that, let’s open up the call for Q&A.
Eva Schaefer-Jansen: [Operator Instructions] The first question will be from Luisa Hector, Berenberg. Luisa?
Luisa Hector: Oh, hi there. Thank you for taking my questions. So, on the increased R&D investment, could you comment on essentially, why now? So why has it now become clear that you need to make this step up in your R&D spend? And can you give us any internal indicators reasons why we should be positive in this increased spend. Just sort of help us understand that the transformation is happening and that these dollars will be invested wisely. So that’s the first question on the R&D investment. And then maybe on Dupixent, just you’ve got your guidance there for EUR 13 billion for next year. So could you comment on how the formulary negotiations have gone to date and your level of confidence in that EUR 13 billion clearly Dupixent performing very well.
Paul Hudson: Okay, Luisa. J.B., maybe you make a comment on the R&D investments first.
Jean-Baptiste de Chatillon: Yes. I guess the question is why now on — is quite clear for us. We were committed to our 2025 BOI margin target since we announced it, and you have seen our journey towards it. As our successful readout of the past few months continued to come in, we worked on various options on how to develop them without wanting to take investments of our launches. And bearing in mind that the headwinds to Gen Med not being reversed. So those options included R&D phasing, selection, potential partnering. But we discussed various strategic options at our Board meeting yesterday, we decided to take on the option to accelerate and fund the full potential of our promising pipeline. We believe this is the best option for the long-term value of Sanofi, our shareholders and also for the patients who we serve.
Paul Hudson: And I’ll come to you, Houman in a second. And of course, we come off the back of things like amitelimaba, EADV, [indiscernible] mentioned. We — as you know, a lot of our development work is happening and discovery work is happening in immunology. And you know our probabilities — is higher plus the importance to bring everything forward with some urgency is also there. So coupled with what JB said, I think the timing is good to say it now. Houman, maybe something confidence as well why do we believe it will be more successful?
Houman Ashrafian: Thanks, Paul. And thank you, Luisa, for your question. Coming into this with relatively fresh eyes and an objective perspective on the portfolio, we really have the opportunity to figure out exactly how we were going to move forward. And having evaluated, especially our leading product, I personally felt with the support of the Excom and the broader group that it was important that we should double down on many assets, which we really wholly own and which could be transformational. Importantly, moving these assets forward in the service of patients and our shareholders across a broad front, which is critically important at this point for many reasons, including the macro and some of the legislative changes that are coming in, in the future and have already come in; one thing I should reassure you to the second — of your sentence was about how you can be reassured that we’re thinking about spending every dollar wisely.
Much of the expenditure will come through thoughtful reallocation towards the first and best-in-class assets. And we will ensure that every dollar is spent both in the service of our shareholders and importantly, in our patients really very carefully. And you’ll see that peppered throughout the conversation thus far.
Paul Hudson: Yes. And of course, at R&D Day, we can really put our cards on the table. I think that’s going to be important.
Houman Ashrafian: Yes, Paul, thanks for pointing to that. I invite you all at this point — December 7 R&D Day, and we look forward to sharing the details with you in greater detail there.
