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SANOFI SA — EXECUTIVE MEMO

"Building Momentum: Vaccines and AI Drug Discovery Strategy"

To: Executive Committee From: Chief Executive Officer Date: June 2030


SITUATION

Sanofi is executing well on three-pillar strategy: vaccines (RSV success), specialty care (growing 4-6%), AI drug discovery (accelerating).

RSV vaccine is blockbuster (€4.8B in 2030). AI drug discovery pipeline advancing. Company growing 26% since 2025.

Challenge: maintain momentum on vaccines while accelerating AI drug discovery to compete with Roche.


CURRENT STATE

Revenue: €55.8B (up 26% since 2025) Specialty care: 40% of revenue, 4-6% growth Vaccines: 20% of revenue, 6-8% growth RSV vaccine: €4.8B (growing 50%+ annually) Operating margin: 24.5%


KEY DECISIONS

1. Vaccine Portfolio Expansion - Invest €2-3B in dengue vaccine (next major opportunity) - Mpox vaccine commercialization - Lyme disease vaccine development - Target: vaccines 25% of revenue by 2035

2. AI Drug Discovery Acceleration - Hire 800+ computational scientists (catch up with Roche) - Invest €2-3B in AI R&D over 2030-2032 - Expand partnerships (Google, DeepMind, others) - Target: 12-15 Phase 1-2 programs annually by 2032

3. Generics Rationalization - Accept declining generics business - Divest underperforming assets - Focus capital on specialty/vaccines/AI


BOARD APPROVAL REQUIRED

  1. Vaccine expansion strategy (dengue, Mpox, Lyme)
  2. AI drug discovery acceleration (€2-3B R&D through 2032)
  3. Generics portfolio rationalization
  4. Hiring plan for computational scientists (800+)

Confidential board memo