Paul Hudson: Thank you, JB. Okay. To Gen Med, I’ll throw it to you, Olivier for a second, but just the general context, I think you know this, you said it. You have pricing headwinds that are simply too strong to be offset by volume even though our volume performance is pretty phenomenal. And that’s an industry phenomenon, by the way, that’s not as a post pandemic sort of fiscal deficit — attention. I think we’ve coped very well, but it won’t offset. The Tzield and — and the sort of growth profile of the segment at the core, if you like, of Gen Med, Olivier? .
Olivier Charmeil: So thank you for your question, Peter. On the — our growth is going to be continued to be driven by the growth of the core assets. We are very happy with the performance of Rasuvo. We are well ahead of our plan. We think that it will continue. And we’ll talk more about a function of indication during the R&D meeting in December. We continue to be happy with the very strong growth in the international region, including China, by — of [indiscernible]. And of course, [indiscernible] is doing extremely well in Europe, where in a very growing market and we are able in some countries to continue to grow our market share. . Just to give a little bit of color. I’m just back from Ispat. I’ve met lot of key opinion leaders on Tzield that was with Paul.
And we are really happy, we are in line with what we had initially planned. In the U.S., we knew that it would be a slow ramp up. We know that the feedback from key opinion leaders and the product is extremely high. We are working through a very focused approach on a limited number of centers, it’s about cleaning, it’s about ways of working. It’s about getting organized. We now have a little bit more than 110 patients and we have done a lot of progress since we took over Provention Bio in terms of making much shorter the period of time between when patients enter into the funnel and what they get infused. So everything that we see and the action plans that we have put in place makes us comfortable that Tzield will be a multibillion asset.
Eva Schaefer-Jansen: Next question is from Graham Parry from BofA.
Graham Parry: So first one is just I think clearly, the series of announcements this morning caught the market off guidance — the share price reaction. And I think what would help is if you can help people with narrowing of the scenarios for the ’25 earnings recovery. So you said flat absolute R&D because I think you even actually — just based on the savings you’re talking about, and as your cost savings come through as well. And given that you have this big step-up into 2024, that’s clearly going to see earnings down. But is it fair to assume, therefore, that the cut to earnings that people will be putting through their models is going to be less in 2025 than ’24 because you’ve got revenue growth in these other savings coming through.
. And then secondly, just what sort of aspirational growth are you targeting post 2025 through these investments again, think that some sort of communication of great — at the end of the decade would be helpful for investors as well. And then lastly, on consumer, clearly, the argument for value creation here would be that appears in consumer trade or much higher multiples in Sanofi. But that rationale goes out of the window if you sell it for cash and then reallocate that capital into another deal. So perhaps some comfort for investors here would be what the preference on options is a spin-off preferred here. Or if not, what are the return hurdles through a transaction on the other side? Would it be EPS accretion? Or would it be MPV positivity?
Just help us with understanding that as well. .
Paul Hudson: Okay, JB this looks like a few for you you and I from Graham Parry. So why don’t we start with a little bit of ’24 and the shape.
Jean-Baptiste de Chatillon: Well, I think Graham [indiscernible] is hitting a very important point is that something we have not reminded enough is that we enjoy an incredible and pretty unique growth profile of our top line. And that’s for the years to come. What we are doing today is having in mind that we want to deliver for ’26 onwards, three to 5 launches of assets with EUR two billion to EUR 5 billion — sales potential. And that’s very important today to remind this player value creation to a greater value creation in the midterm. The top line growth is untouched in the years to come, and I think it’s pretty easy to read and will not even be bolstered with success like the one you see on [indiscernible] should I say something about CHG .
Paul Hudson: Yes, ’25, a little bit more color on ’25.
Jean-Baptiste de Chatillon: Well, I think I give the — that was a missing piece that was that we will be growing in ’25. So there’s a strong rebound fueled by late R&D savings, reallocation, improvement on COGS, deep transformation of the Company, a second step in this transformation. All of this is really leading to a strong demand as soon as 2025 with the growth profile, which is untouched — I think it’s really too early to be more precise. We said we had a preferred route. But whatever the route we take, we’ll keep in mind the best interest of investors. .
Eva Schaefer-Jansen: Next question is from Tim Anderson from Wolfe .
Timothy Anderson: I just want to, again, stay on the guidance. How much of the pressure to earnings in ’24 and ’25 from below the line items versus on the revenue side, you’re talking about Gen Med guidance no longer being the same as what it was. That would suggest there’s some portion revenue shortfall on the top on the revenue side that drives the earnings reduction as you’re suggesting the Street build in for ’24 and ’25. So can you kind of apportion the lowering to revenue reduction versus things that are below the line. And then on the below-the-line stuff, it sounds like it’s not just R&D, it’s not just tax, but that’s also stepped up promo of certain brands, and I’m wondering if you have specifics to share there.
Paul Hudson: Okay, JB. On the pressure on earnings from below the line. .
Jean-Baptiste de Chatillon: I think the — is everything which is below the top line. I understood. Okay, got it. Yes. Well, yes, because top line is pretty clear, you’re right, and it’s growing steadily. So I tried to give you that this step up — so many difference is really R&D. Of course, it’s altered by the shape of the decrease in Gen Med but mainly, it’s really this decision of going all in, in developing the pipeline. You’ve seen that we’ve not been shy or mainly we went just recently, you’ve seen two big deals appearing the]indiscernible] TL1, which is a great complement to our immunology story and also in vaccine, the [indiscernible] Paul just presented, there are big potential. So in this endeavor to look for EUR three billion to EUR 5 billion peak sales. That’s where we are. It’s R&D, the main driver of the change.
Eva Schaefer-Jansen: The tax regulation changes?
Jean-Baptiste de Chatillon: Well, tax regulation changes — thank you, Eva. It’s Pillar 2. As you know, we have a tax setup, which had really improved a lot in the past 5 years, very steadily, decreasing the effective tax rate. With this minimum 15% taxation, some of the players, and we are one of them are hit by this change in regulation. That’s the way it is.
Eva Schaefer-Jansen: Next question from Peter Verdult from Citi.
Peter Verdult: Yes. Thanks. Pete Verdult, Citi. I wanted to talk more about the pipeline, but I’ll probably — to wait for December given share price reaction. So apologies team, it’s to on financial and commercial. Just again, just to go back to the guidance. I know, Sanofi doesn’t guide on revenues, but in your prepared remarks, you did call out revenue growth expectations in ’24. Can I push my luck and explore your comfort or the upside potential to where market expectations are currently, which is around mid-single-digit growth in 2024. And then secondly, [indiscernible] JB, Beyfortus in September at the launch, the message was custodies are great. The demand has been phenomenal. [indiscernible] are now being reported. So I just want to gauge how quickly you can ramp the capacities further near term, given the analog benchmarks, you’re using a clearly sort of undercooking what’s happening in reality. .
Paul Hudson: Thank you. Pete, I look forward to questions in R&D Day. JB, I’m not sure there’s much to add, frankly, on beyond 2024 on revenue growth. .
Jean-Baptiste de Chatillon: We’re not guiding, but our confidence, I think you can feel it to the team. We are a growing story and a growth story and such will happen. No, I don’t think we can be much more precise at that stage. But I think maybe [indiscernible] .
Paul Hudson: So Thomas, maybe give you a little bit of our time to talk about the incredible launch.
