Sanofi’s interim leadership sought on a Thursday earnings call to quell concerns that its sudden defense of Dupixent’s patents had anything to do with the departure of CEO Paul Hudson.
Sanofi’s interim leadership defended Dupixent’s patent strategy from all sides on Thursday, as analysts wondered why the sudden urgency to talk about the upcoming loss of exclusivity during a first quarter earnings call.
Veteran analyst Steve Scala of TD Cowen wondered if the departure of CEO Paul Hudson may be behind the abrupt change of direction or if Sanofi’s pipeline has become less certain.
“We’ve always been consistently saying that we have a very strong patent portfolio and that we tend to vigorously defend Dupixent,” explained general counsel Roy Papatheodorou on the call. The drug is approved for a variety of inflammatory diseases, including atopic dermatitis, asthma and chronic rhinosinusitis. The patent expiry is approaching, but Papatheodorou said the drug is covered by a web of patents extending out as far as 2045.
“There is a logic that we talk about it, because we get nearer to the LOE [loss of exclusivity] and we see that there is a very strong appetite from the investor community to understand what’s coming after Dupxient,” said CFO François Roger. “I don’t think there is any defensive view on that matter.”
Rather than any shift in strategy, the matter of Dupixent’s patent protection “was just put in writing,” Papatheodorou insisted, as the future of the Regeneron alliance that resulted in Dupixent is changing. In the next few years, Regeneron will reimburse less of the development costs, stepping down to zero by 2027.
Interim CEO Olivier Charmeil put to bed the idea that Hudson’s departure had anything to do with the new disclosures. “It has nothing to do with the change of CEO.” Hudson had, in fact, pledged to provide an update on Dupixent’s future in the first half of 2026.
Roger’s assertion that Dupixent is a “major product for us” could be considered an understatement. The immunology therapy is by far Sanofi’s best-selling product, bringing in €4.2 billion ($4.9 billion) for the quarter, an increase of nearly 31%. No other products in the pharma’s portfolio reached $1 billion in the quarter.
Sanofi and partner Regeneron are indeed working on follow-up programs with an eye toward Dupixent’s LOE period. Key to this next phase is itepekimab, which last year failed to meet analysts’ sky high expectations in a Phase 3 chronic obstructive pulmonary disorder trial.
Updating the situation on the earnings call, Sanofi’s leadership said that discussions are underway with the FDA on the design of a third Phase 3 trial. Additional late-stage readouts are expected in 2027 for itepekimab in chronic rhinosinusitis with nasal polyps.
Time for change
Overall, Sanofi’s sales grew 13%, with newly launched products like Ayvakit, Altuviiio and Sarclisa combining for €1.2 billion ($1.4 billion). After a period of decline, vaccine sales picked up by 2% to €1.3 billion ($1.5 billion).
Total revenue reached €11.2 billion ($13.9 billion), beating analyst consensus by 3%.
The Thursday call was the first without Hudson, who was suddenly let go in February to make way for Merck KGaA’s Belén Garijo. She will take the helm in the coming weeks. In the meantime, Charmeil, a longtime Sanofi veteran, has been serving as interim chief executive. He advised Garijo, herself a Sanofi alum, not to rush any strategic pivots.
“Take some time to make the right diagnostic. I think the company has considerably changed in the last five to 10 years. The way the company has modernized is very impressive,” Charmeil said. He cited the company’s improved presence in the U.S. and better prioritization—initiatives that occurred under Hudson’s leadership.
“It’s going to be a period after the diagnostic where she needs, of course, to be decisive,” he said. “And knowing her, I know that she will make the right choices.”
