Paul Hudson: Yes. And I think before I come — I’ll throw it to Brian on Dupixent in a second, but also, I think it might be worth recognizing although, we have a new head of R&D that has a more unique profile, both, if you like, skilled in science, but also in capital allocation, given its background. And it’s unique, and I think that’s already being put to work for us because there’s a great awareness for how we spend and how we create a return firstly for patients and investors investment. Brian, $13 billion, And how confident are you of the formula status?
Brian Ford: Thank you, Luisa, so much for the question. We’ve always had very good formulary status, and we’ve worked very closely from the very beginning with the strategy with the payers. And as we’ve said before, today, even we have more than 70% of our coverage is actually commercial coverage. And so we feel very good about the negotiations going into 2024. But I would start by saying, as we talk about the confidence, not only with the payers, but the companies we have in EUR 13 billion, it begins with the profile. We’ve got a profile that is quite unique, targeting IL-4, IL-13. We have 5 indications now in atopic dermatitis. We have 5 years’ worth of data now in our label, both in the EU and in the U.S. We’re down to the age of six months of age for young babies.
So we have quite an incredible profile, and you look at the growth that we continue to generate year-on-year, it’s quite impressive. And so be hard not to be confident in a brand like this. And so I think as we shared with you before, we shared with you, I think, back in 2019, the way point of EUR 10 billion first, we went back, it wasn’t that long ago in 2022 — the beginning of 2022, just over a year ago, we gave a new — point of a little bit greater than EUR 13 billion. And now here we are talking about reaching close to EUR 13 billion next year. It’s quite impressive. So we feel very confident, I think, in the continued growth of this brand and a leading profile across all the indications that we compete in. .
Paul Hudson: Thank you, Brian. Maybe just add then finally to that. With our delivery on Beyfortus and — the great work that’s been done to prepare ourselves for Tzield and the deliver on DUPIXENT. There’s a sort of operational alpha about this Company, and it makes you feel very confident about money well spent bringing great medicines through can get launched really well in this Company. And I think it’s important not to lose sight of that.
Eva Schaefer-Jansen: Next question is from Emily Field from Barclays.
Emily Field: Maybe just to piggyback on one of the last answers. You talked about doubling down on some of the programs that you’re advancing. I was just wondering if we could get some more granularity on that because I think, at half year results, we talked about amatelimab and frexalimab going into Phase III. So are these studies going to be larger than initially planned? And then second question, just on Gen Med, if you could provide some color, I know you gave a number of products that you’re targeting for ’25, just maybe more on the sales expectation and just the impact of that sales expectation to overall BOI margin. Are those higher-margin products that are coming off just so we can think about the moving parts getting to 2025 BOI margin. .
Paul Hudson: Okay. Maybe just a quick response for me. The — we’ll go through this at R&D Day. I understand that why you asked the question, going more broadly with amnitelimab, potentially going more broadly with — potentially, when we look at the oral small molecule TNF, we have only shared one piece of data, I think, in psoriasis from recollection with an intent to go to a couple of indications. When you look at the IRA, you look at a small — you go, you know what, if we like the data, we’re going to have to run parallel studies to bring this thing through to fully prosecute it. They’re the sort of things that we’re starting to say to ourselves that frexalimab beyond MS. These are the things we’ll talk with you about at R&D Day in December.
But these are not inexpensive things to do, but are two good opportunities to miss, particularly with our ability to deliver and to launch. So again, December 7, we have a few hours on this, and it will be up to us to demonstrate that to you. But I think you’ll see it. I think when you may be asking the question, okay, why now, what’s different? Its urgency, it’s confidence, it’s breadth and it’s a sheer intent to go all in to create massive future value. And we can perhaps do it in an optimized fashion. It just is not worth it at this point. The big — the win is too big over the longer term. I think, Olivier, there was a question around Gen Med?
Olivier Charmeil: Yes. So thank you, Emily, for your question. So we are going to continue to simplify our portfolio. We are a little bit in advance versus our plan. We are now aiming at 85 product families for 2025 when initially we were aiming at 125 coming more than 350. It’s very much directed by profile and gross margin. We want to focus our resource on the drivers that are going to drive profitability and brands that are going to drive growth. . What does it lead to in terms of sales profile? As Jean-Baptiste mentioned, we are no longer aiming to maintain Gen Med sales into ’25 at the level of 2020. But we remain very, very committed to our guidance in terms of BOI margin between 220 and 225 and we are well on track here due to, of course, the pressure we put on OpEx, the efforts that are done by our colleagues from manufacturing to improve the cost of goods.
Eva Schaefer-Jansen: Next question is from Peter Welford from Jefferies.
Peter Welford: First question, I guess, is going back to a point you to some extent, already covered, but I guess just curious why the decision now to talk about 2024, 2025 EPS and highlight the increasing R&D. I guess we would never — outside world have known the increase in R&D plans until potentially the seventh of December R&D Day. So I should just outline, you know, why disclose that, the spending sort of now, but then give the details of the seventh of December? What was the urgency, I guess, in this sort of six weeks, if you like, preview rather than necessarily giving us all the information together then at the Capital Markets event. And then just secondly, if I just come back to Gen Med. Obviously, you’ve done the Tzield deal.
I mean you’ve actually upgraded the sales outlook for the flat portfolio of newly launched brands. We’ve also seen Resinrock launch as well. Can we just ask with regards to the change in the product families. And I appreciate that obviously, you’re pruning the portfolio. But equally, obviously, there’s a lot of growth assets within that. So could you just perhaps give us some sort of clarity in terms of what sort of growth we should profile or I think we should be looking for, for that business? I appreciate that on the stabilizing. Is this a business where you think the current trend is going to continue? Or is it likely to accelerate given the commentary in the outlook section about more aggressive pricing dynamics that you’re seeing for that business?
Paul Hudson: Okay. Peter, thank you very much. Jean-Baptiste, a little comment on ’24, perhaps even a comment on ’25 and a little bit around why don’t wait until R&D Day? .
Jean-Baptiste de Chatillon: Yes. Well, that’s a great question. But I think I tried to answer it just before that once you’ve made a decision through the governance and we had our Board meeting yesterday, we had different options, but we opted for this doubling down in R&D and science. So it’s good practice to communicate without differing. Then on 2025, as I said, and it’s difficult to understand why the R&D would plateau in ’25 versus ’24. But you have to keep in mind that reallocation exercise we are doing now with Zuman,, I must say, but it will still deliver the bulk of it in ’25, not in ’24 so that will come to give more leeway to the development of our I&I pipeline and vaccine pipeline. You have also to think that the studies on COPD and tolebrutinib will be dwindling and these costs will disappear, giving more room also to embark spend for our I&I pipeline and vaccine pipeline, as I said.
So this is one point. On COGS and Dupi, remember that we will have the full impact of the improvement of COGS in 2025. And globally, the other elements of our saving plan will also mainly deliver in ’25. So that’s why we are concluding that we will have a strong rebound in 2025.
