New
Sanofi (sny) Q4 2024 Earnings Call Transcript
Image source: The Motley Fool.
Sanofi (NASDAQ: SNY)
Q4 2024 Earnings Call
Jan 30, 2025, 9:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Thomas Kudsk Larsen -- Head of Investor Relations
Welcome to the Q4 and full year 2024 conference call for investors and analysts. As usual, you can find the slides on sanofi.com. Please turn to Slide 3. Here we have the usual forward-looking statements.
We would like to remind you that information presented in this call contains forward-looking statements, which are subject to substantial risks and uncertainties that may cause actual results to differ materially. We encourage you to read the disclaimer in our slide presentation. In addition, we refer you to our Form 20-F on file with the U.S. SEC and our French registration document for a description of these risk factors.
Should you invest $1,000 in Sanofi right now?
Before you buy stock in Sanofi, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sanofi wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $758,099!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of January 27, 2025
Financials reported are under the new reporting scope that excludes Opella consumer health. As usual, we will be making comments on our performance using constant exchange rates and other non-IFRS measures. Numbers used are in millions of euros and for Q4 2024, unless stated otherwise. Please turn to Slide 4.
First, we have a presentation, then we will take your questions. Because this is full-year results, we have a few more slides. We'll still have time for lots of questions as we added 15 minutes to the call time on top of the usual one hour. For Q&A, we have Brian, Olivier, Thomas to cover our global businesses, as well as Roy, our general counsel, and Brendan, head of manufacturing and supply.
[Operator instructions] With this, I'll hand you over to Paul.
Paul Hudson -- Chief Executive Officer
Well, thank you, Thomas. Hello everyone on the call. We made significant progress in 2024 toward becoming a focused science-driven biopharma company. Our strategic progress was emphasized by the decision to sell a controlling stake in Opella and further prioritize R&D.
On the business, we achieved double-digit sales growth with strong contribution from launches. This included Beyfortus that achieved blockbuster status in its first full year of sales. In R&D, we're pleased with the positive Phase 3 results of fitusiran, riluzabrutinib, and tolebrutinib. They provide the foundation for potential launches this year, underpinning our sustainable growth.
We are thrilled by the Phase 2 of duvacatode that is ready to move to Phase 3, pending regulatory feedback. Houman will share more pipeline details later. Looking at Q4 on Slide 6, we reported double-digit sales growth for a third consecutive quarter, supported by our key drivers, vaccines, Dupixent, and pharma launches. Taking a closer look at the launches on Slide 7.
In Q4, Beyfortus sales were as high as those in the first nine months of the year combined. We now have expanded RSV protection to more than 6 million babies around the world. In hemophilia, an increasing number of patients switched to Altuviiio from both factor and non-factor therapies. We're seeing strong patient benefits, and sales reached almost 0.25 billion euros in Q4.
We are confident in our expectations that Altuviiio will become a blockbuster this year. Moving to Slide 8. Dupixent exceeded the target of 13 billion euros in sales, driven by the demand for more than 1 million patients globally. In Q4, Dupixent grew by 16% from strong prescription trends in all geographies.
In the U.S., Dupixent continued its leadership in new-to-brand prescriptions across all indications, in line with the first nine months of the year. U.S. sales growth in the quarter reflected fewer business days compared to prior quarters and the normal year-end gross-to-net adjustments. In countries outside the U.S., Dupixent delivered more than 3.5 billion euros on a full-year basis.
In COPD, we are in the early stages of the launch, and we're seeing positive feedback from patients and prescribers. We expect the inflection point to be this year and COPD to become an important growth driver due to the large unmet medical needs. As we expand the benefits of Dupixent to more patients, we're pleased with the continued work on new indications, including EoE for children in the EU; CSU outside Japan; and BP, globally. New uses, increased penetration in approved indications, and further geographic expansion are all important future drivers for Dupixent.
Moving to Slide 9. 2024 marked a sales record for our vaccines business, crossing the 8-million-euro milestone, up by 13.5%. This performance was driven by Beyfortus, offering a marked reduction in hospitalization across more than 20 countries with all infant programs. We have the only RSV mAb with real-world data showing greater than 80% effectiveness in more than 100,000 babies.
Our flu franchise was resilient, keeping its status as the world leader. 2024 sales exceeded initial expectations, driven by our differentiated Fluzone High-Dose and Flublok. In Q4, we also made significant progress with our vaccines pipeline with the start of six new vaccine studies, including the Phase 3 study for a pneumo vaccine, PCV21, in children. Our R&D efforts in vaccines continue to be recognized by health authorities with the FDA granting Fast Track designation to our three new Phase 1/2 flu programs.
I'm pleased to share with you Sanofi's remarkable achievement in the 2024 Access to Medicine Index. We have improved our ranking and moving from eighth to third place, underscoring our commitment to global health. Important factors for this result are governance of access, R&D, and product delivery. The Sanofi Global Health Unit plays an important role by delivering crucial medicines from the Impact brand portfolio to 30 low- and middle-income countries.
Ending on such a positive note, I would like to take this opportunity to thank all Sanofians for their continued commitment to improve the lives of millions of patients. Thank you. I'll now hand over to Francois, our CFO, for more details on the financials.
Francois Roger -- Chief Financial Officer
Thank you, Paul, and hello to everyone. Before I begin, just a reminder that our Q4 and full-year results reflect our new reporting scope, excluding Opella. In the quarter, net sales increased by 10.3% at constant exchange rates to 10.6 billion euros, marking our third consecutive quarter of double-digit growth. As mentioned earlier by Paul, growth was driven by new product launches, as well as Dupixent.
Gross margin was 74.3%, down slightly from the previous year, primarily due to the absence of COVID revenues in 2024. Excluding this COVID impact, our gross margin increased by 0.8%. The increase in operating expenses was driven by R&D, reflecting a high activity level in the quarter and brought us in line with our commitments for the full year. Business EPS was 1.31 euros, mainly reflecting a lower gross margin and the increase in R&D and a higher tax rate following the OECD Pillar 2 implementation.
Now turning to our full-year results. Net sales increased by 11.3% at constant exchange rates to 41.1 billion euros, driven by our new product launches, including Beyfortus that became a blockbuster, as well as Dupixent that exceeded our ambition of 13 billion euros in sales. Gross profit grew by 10.3% at constant exchange rate to 31.1 billion with a gross margin of 75.7%. Our gross margin declined slightly due to the absence of any COVID revenue in 2024 and the remaining impact of the Aubagio LOE.
R&D expenses increased by 14.6% at constant exchange rates to 7.4 billion euros, fully in line with our ambition to step up investments in our pipeline in 2024. SG&A expenses increased by 4.5%, providing an attractive gross leverage benefit. Business EPS increased by 4.1% at constant exchange rates to 7.12 euros, exceeding our full-year guidance. We ended our 2024 business EPS more than 6 percentage points above our initial guidance at the beginning of the year.
These results reflect our ability to drive strong growth while investing for the future and while carefully managing our cost base at the same time. Looking ahead to 2025, we would like to provide an overview of anticipated key business dynamics, which may be helpful for modeling purposes. As a reminder, at the beginning of the year, we expect to see the usual impact from the annual reset of insurance deductibles which leads to higher utilization of our copay assistance program for specialty medicines in the U.S. market.
We anticipate only modest headwinds from the introduction of changes to Medicare Part D under the IRA. We continue to simplify our portfolio of other medicines, and we expect around 250 million euros of sales reduction from disposals. We expect Beyfortus to grow further with additional penetration on geographic expansion. Our gross margin is expected to increase in 2025.
R&D expenses will be slightly up, and there was a one-off Sobi item last year. SG&A will also slightly increase in preparation for upcoming launches, and we expect capital gains from portfolio simplifications to be again around 500 million euros. Our effective tax rate should remain broadly stable compared to 2024. For our 2025 guidance, we have decided to expand our disclosure by providing sales growth, in addition to EPS growth.
For 2025, we project sales to grow at the mid- to high single-digit percentage at constant exchange rates. This guidance now excludes any impact from hyperinflation, which accounted for about 1.8 percentage point of sales growth in 2024. We estimate a positive foreign exchange impact on sales of approximately plus 2% to 3% in 2025. Business EPS growth is expected to grow at a low double-digit percentage at constant exchange rates before foreign exchange and before share buyback impact.
We estimate a positive business EPS impact from currency of approximately plus 2% to 3% as well. Shifting to our free cash flow in 2024, which was mainly impacted by three one offs: first, the impact of price cuts of Lantus in the U.S. in H1 for 1.1 billion euros; second, the entire elimination of all factoring of receivables for 1.4 billion euros; and third, an unfavorable exchange rate impact of 0.8 billion euros, all of it resulting in a closing free cash flow of 6 billion euros. We expect our free cash flow ratio to be back to our historical levels steadily over 2025 and 2026.
The slight increase of our net debt at the end of 2024 reflects our strategic investments, including the acquisition of Inhibrx, as well as our value proposition to shareholders in the form of a growing dividend. Our net debt-to-EBITDA ratio, which is actually pretty close to our net debt-to-BOI ratio, was at 0.7 times at the end of 2024. This showcases a low gearing ratio and an optimal balance between strategic capital allocation and financial flexibility. In 2025, Sanofi will receive a cash consideration in the high single digit in billions of euros from the Opella transaction at the earliest in Q2 while retaining a significant stake in the company above 48%.
Let me conclude by confirming our existing capital allocation policy. Our primary focus is to invest in our business to drive growth, demonstrated by our increased investment in R&D last year, as well as ongoing investments in manufacturing, in AI, in digitalization, as well as in sales and marketing. We will continue to explore external growth opportunities to strengthen our four existing therapeutic areas and potentially cover white spaces. In all our external investments, we maintain strict discipline and focus on value creation for our shareholders.
Our preference remains for investments in the range of 2 billion euros to 5 billion euros each. We are committed to maintaining our AA credit rating in the short to medium term. In line with our commitments to shareholders, Sanofi intends to execute a share buyback program of 5 billion euros in 2025. These repurchases will be conducted preferably through block trades and in the open market.
Shares acquired will be canceled and will have an accretive effect to Sanofi's earning per share, mitigating part of the Opella dilution. This commitment underscores our confidence in Sanofi's future and our commitment to delivering long-term shareholder value. Our proposed dividend of 3.92 euros per share for 2024 marks the 30th consecutive year of dividend increase, further reflecting the emphasis we put on shareholder reward and the dependability of our dividend policy. With the proposed dividend and the share buyback combined, we will reward shareholders with almost 10 billion euros in 2025.
This would be a record year in terms of shareholder return for Sanofi. I now hand over to Houman to provide an update on the progress of our innovation pipeline.
Houman Ashrafian -- Global Head of Research and Development
Thank you, Francois. 2024 accelerated the transition into a company with increased focus on science with our pipeline starting to deliver meaningful benefits for patients and healthcare systems and growth opportunities for our company. We presented convincing clinical trial results in recent medical meetings, including for tolebrutinib in SPMS, rilzabrutinib in ITP, and fitusiran in hemophilia, the molecules from our pipeline that we are incidentally preparing for launch this year. As we look holistically at R&D productivity, scientific publications in high-impact journals underpin our commitment to developing science and bringing new medicines and treatments to patients.
We have an increasing trend of high-impact publications, and we now plan to closely track this leading indicator of improved productivity over time. Our pipeline has continued to deliver positive results, including eight positive Phase 3 readouts in 2024. We've initiated 18 mid- to late-stage studies with seven Phase 3s and six new molecular entities moving into the clinic. This increased level of activity is the main driver of R&D spend that Francois covered earlier.
On the regulatory side, we've made substantial progress with 21 acceptances of our regulatory submissions, including for the new -- for the three new molecules for the year. None of these are benefiting from priority review. We received 14 approvals supporting the ongoing new launches. Please turn to the next slide.
We are pleased with the significant process made for -- progress made for Sarclisa in 2024, including approvals of the MRO study in the U.S. and the EU last week. During the ASH meeting, data were presented in the frontline treatment option in multiple myeloma, both for patients eligible and ineligible for our autologous stem cell transplant. On the left, we have the PFS curve from the HD7 study, where Sarclisa, added to a standard frontline combination, demonstrated a 43% improvement in PFS based on a hazard ratio of 0.7.
We're very pleased that Sarclisa continues to shine in terms of patient benefits by offering a new standard of care. On the right, we referenced the IRAKLIA Phase 3 study of subcutaneous Sarclisa, meeting both co-primaries noninferiority end points, in addition to confirming a safety profile. Additional data from ongoing studies, in combination with different standards of care and across multiple lines of treatment, will support a broad application for a subcutaneous administration which we think will bring new benefits to patients and healthcare systems. The first regulatory submission is expected in the first half of 2025.
On Slide 21. Our commitment to rare diseases remains steadfast. Rilzabrutinib is one of the new additions to this portfolio with potential in ITP and far beyond. At ASH, we shared the Phase 3 data in ITP with rilzabrutinib meeting its primary end point of a durable platelet response in 23% of patients, compared to 0% on placebo at week 25.
In addition, a platelet response defined as a platelet count achieving at least 50 times 10 to the ninth per liter or a platelet count between 30 times 10 to the ninth per liter and 50 times 10 to the ninth per liter that are double from baseline, was achieved in 65% of our patients after only 15 days of treatment. As rilzabrutinib pleiotropically addresses the underlying immunological mechanisms of the disease instead of just boosting platelets per se as some existing medicines do, it confers an improvement in the quality of life of clinical symptoms and fatigue, even in nondurable response. We anticipate global approval this year and launch as the regulatory reviews are ongoing in EU, China, and in the U.S. for the PDUFA date of the 29th of August.
In addition, we now have meaningful benefit in wAIHA IgG4-related disease from our Phase 2 programs with IgG4 for being shared for the first time today. We're evaluating the move into Phase 3 with at least one of these two indications. As we remain committed to rare disease, we believe rilzabrutinib can bring significant patient benefit as we unleash the potential of pleiotropic immune modulation. On Slide 22, our partner Teva recently announced positive duvakitug Phase 2b results in IBD.
IBD remains an important unmet medical need in immunology where we are underrepresented today. Duvakitug represents a meaningful opportunity for Sanofi to begin to bring new science and benefit to IBD patients continuing immunology and far beyond. We saw a statistically significant and clinically meaningful benefit in ulcerative colitis and Crohn's disease with all end points met and faring pleasingly competitively within a TL1A class. It is the first and only TL1A to demonstrate a benefit in Crohn's disease, patients achieved strong placebo-adjusted responses across both indications as high as 27.4% clinical remission in UC and 34.8% endoscopic response in Crohn's disease, both at the high dose level tested.
Combined with a favorable safety and tolerability profile, these positive results offer an opportunity to advance the program into Phase 3 development and potentially offer an improved outlook for patients with moderate to severe inflammatory bowel disease relatively soon. Additionally, data will be presented at the ECCO meeting later this month. I'd like to conclude with my usual news flow slide now with 2026 news flow for the first time. We plan 12 Phase 3 readouts, 15 regulatory submissions, and 13 regulatory decisions in multiple jurisdictions increasingly capturing the improving value of our clients.
Importantly, we also see the intensity of the news flow increase over the coming two years, building on our earlier comments about our focus on improving R&D productivity. The cadence and the volume of the R&D drumbeat continued to quicken. We look forward to updating you on our progress. As I regularly say, we remain humble in the patient disease and regrettably not everything will work.
However, I'm optimistic that the impact of talented science-focused teams, coupled with our increasing exposure to breathtaking digital technologies, will drive this unique pipeline in our core-focused therapy areas in the service of patients. I would like to thank all of my brilliant R&D team members and colleagues across the company for the positive progress made this year. We are indeed chasing the miracles of science to improve people's lives. With this, I hand back to Paul for Q&A.
Paul Hudson -- Chief Executive Officer
Well, thank you, Houman. Thank you, Francois. We'll now call to questions. [Operator instructions]
Questions & Answers:
Operator
Yes. The first question will be from Luisa Hector from Berenberg. Luisa?
Luisa Hector -- Berenberg Capital Markets -- Analyst
Hi there. Thanks for taking my question. On the buyback, perhaps you could just comment on the rationale for the size, the 5 billion euros and how soon you might start the buyback, and then any color on plans for the rest of your proceeds. So essentially, just latest thoughts on M&A targets by development stage, therapy area, size, etc.
Perhaps then I could move to vaccines. I would like to ask Thomas some questions, maybe on the pneumococcal vaccine. So the Phase 3 entry, very exciting, perhaps a bit more color on what you're looking to show in Phase 3 and how you see the competitive landscape because there are others coming forward with vaccines perhaps with higher valence C2431, so how you see a 21 valent vaccine fitting in. Thank you.
Paul Hudson -- Chief Executive Officer
Thank you, Luisa. I counted eight questions. So OK, so buyback, sizing, timing, proceeds. Over to you, Francois.
Francois Roger -- Chief Financial Officer
Yes. So good morning, Luisa. See, the rationale for the 5 billion euros, actually, we wanted to mitigate part of the dilution of Opella. So I think that we are addressing that with the 5 billion euros.
What we did as well was to listen to you as analysts and to listen our shareholders as well, and we found that 5 billion euros was actually the amount that -- on which there was a consensus as well on your side. The starting point, we expect to start the share buyback in the middle of next week, actually, or relatively quickly. The rest of the proceeds, it's part of our capital allocation. You saw that, first and foremost, we want to invest in our business, which is what we did in R&D last year, which is what we do as well on a permanent basis in AI, in manufacturing.
There will be more coming in, in sales and marketing ahead of quite a few launches coming in. Obviously, we are looking as well very seriously at external growth opportunities, BD and M&A, without any pressure because we have a strong growth outlook ahead of us because we have a strong pipeline as well. I mean, Houman just covered it a few minutes ago. That being said, we have a strong balance sheet.
As you could see, we have a limited amount of debt as at the end of '24, so which gives us a certain number of opportunities, but we don't feel any pressure to go crazy on M&A and BD. So we will remain very disciplined while having the opportunity to complement whatever we have in our pipeline. So the main focus will be actually on our four therapeutic areas, which you know, plus potentially some white spaces, once again without feeling any pressure and always focused on creating value for our shareholders.
Paul Hudson -- Chief Executive Officer
Thank you. Thomas, PCV21, competitive landscape.
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
Thank you, Luisa. Indeed, Sanofi was very pleased to announce the start of the Phase 3 program for PCV21 panel product. The study is progressing as per plan. And in total, we are expecting to include more than 7,000 infants into the overall Phase 3 program.
More broadly and in line you're your question, as you know very well, first of all, it's exactly at the heart of what we're doing today at Sanofi vaccines. It's reaching either the pediatric for this Phase 3 program or the elderly segments, both segments where we are very well-positioned, so it fits perfectly with our portfolio. It will be nicely complementary. It's a big space today, but pediatric is about 70% of the pneumo business altogether.
And basically, as per the competitiveness of the program, I think I have a couple of things to highlight. First of all, PCV21 program is going to be the first pediatric vaccine against pneumococcal disease that will enter into a national immunization schedule, the first one with more than 20 valences. So I think that we position well as a starting point. As you've noticed also from our December announcement, we've announced a refocusing of the alliance with our partner SK, which means that it's a starting point.
It's not an ending point. We'll start with PCV21. And of course, our objective is to be competitive all over the marketplace. Therefore, we'll keep going forward with more and more valances.
So we appreciate, obviously, that other companies are working on other candidates in this space, but we do believe that we are very well-positioned to start a significant entry into that place, and we remain competitive in the future.
Paul Hudson -- Chief Executive Officer
Great. Very effective. The first is you said 21 valences and a years ahead in the pediatric market, which is the biggest segment of all in that market. OK.
Next question.
Operator
Next question is from Graham Parry from BofA. Graham?
Graham Parry -- Analyst
Great. Thanks for taking my questions. So firstly, on Dupixent and just the gross-to-net adjustment in the fourth quarter, can you just clarify that with just a one-off adjustment catch-up for channel mix, rebate levels through the whole year of 2025 and just the extent to which that drove the 150 million euro miss. Is that just the majority of that compared to, say, invoicing days? And then just any comments you've got on how that could progress into 2025.
And then secondly, on Beyfortus, just given clesrovimab potential for approval this year, possible inclusion in the season, do you -- are you -- what are you assuming in your guidance for the year on Beyfortus? Is it expected to grow? And then finally, on tolebrutinib, if you could just update us on the indication that you're expecting for tolebrutinib in non-relapsing SPMS. Is it classically defined non-relapsing SPMS you're discussing? Or is there any potential here to get a broader label for progression, independent of relapse activity? Thank you.
Paul Hudson -- Chief Executive Officer
Thank you, Graham. Brian, Dupi, gross to net and outlook to '25.
Brian Foard -- Global Business Unit Head, Specialty Care
Yes. Thanks so much, Graham, for the question. And I'll first start off by reiterating what Paul said in his opening remarks. We couldn't be more pleased with Dupixent's full-year performance, delivering greater than 13 billion euros.
As you guys know, we provided the target of 13 billion euros for the year, 23% growth this previous year. And again, it's underlying demand driven is what's happening here. So we have strong TRx growth across indications and across geographies, and that's the same actually for Q4. Q4 was really strong performance with double-digit growth in terms of sales and TRxs.
And it's just exactly as you said. I think you said it in your question. It was really due to the Q4 net sales reflect some one-off items in the U.S., so there's some true-ups there. And of course, there is a little bit of the fewer business days.
There's a little bit of each of the two mixes. But overall, again, really, this doesn't affect volume. We're in a really strong position as far as volume goes. And now having 2024 behind us, it even further reinforces our commitment to our longer-term guidance that we provided, so feel like we're in a very good shape exiting '24 and entering '25.
Paul Hudson -- Chief Executive Officer
And you see the script trends as we started the year, so very encouraging already. Beyfortus guidance, Thomas, and competitive set?
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
Yeah. So thanks for the question, Graham. First of all, maybe before we switch on to 2025, a couple of those on 2024, very happy about the first year of Beyfortus first full year of sales. We reached close to 1.7 billion euros, unprecedented pediatric immunization launch in the history of pediatric immunizations.
So I think that's a proof point of our capabilities. Now it's also a proof point of the capability of the product because you've seen that not only we are happy about the sales, but most importantly, we are very happy about the impact we have seen on hospitalization in the newborn population. Now moving forward from 2024 to 2025, we see further growth in 2025. That's very clear when you look at the penetration on the number of countries we can go to.
There's more penetration in some markets, and there's a couple of more markets notably in Europe or Asia where we could grow in the coming year in 2025 and after in 2026. So obviously, we also recognize that there are more competition coming down the road. You've pointed another molecule antibody that could come in 2025. We expect this other molecule antibody to come in 2025 in the U.S.
As we discussed before, I think first impact would be the fact that we will talk more about the importance of RSV prevention. So it will raise the importance of the awareness of RSV disease. That's the first thing. And then, of course, while there will be more competition down the road, we believe that we have a competitive profile with nirsevimab.
We have an extensive amount of reward dividends. You've seen many countries showing 80% or 90% reduction in hospitalization, and you've seen the very pristine safety on a large scale that is provided with the Beyfortus moving forward. So I think that from a real-world evidence, from the competitive profile, but we have also with a significant half life compared to the other molecular antibody, we are well-positioned to grow in 2025.
Paul Hudson -- Chief Executive Officer
Thank you, Thomas. Houman, tolebrutinib and potential label.
Houman Ashrafian -- Global Head of Research and Development
Yeah. So thanks for the question, Graham. Tolebrutinib has been submitted in line with our previous guidance last year. We're excited about the data for tolebrutinib, as you suggested, secondary progressive MS, and we are equally excited about the readout later in this year for PPMS.
This is a demonstration of Sanofi's commitment -- unwavering commitment to patients with MS.
Paul Hudson -- Chief Executive Officer
OK. Next question.
Operator
Next question is from Seamus Fernandez from Guggenheim. Seamus?
Seamus Fernandez -- Analyst
Hello. Thanks very much. I'll just go simple and try to abide by the one-question request. So actually, the question is for Paul and Houman sort of simultaneously.
If you each wouldn't mind offering up the catalysts that you're most excited about in 2025 in particular. I think most investors anticipate the results of itepekimab most eagerly but love to just kind of hear your thoughts on maybe your top three and if perhaps they might differ slightly. It would be fun to hear that as well.
Paul Hudson -- Chief Executive Officer
All right. So the old, which is your favorite child. For me, it's the one that called me most recently. But maybe Houman, you start, and I'll add.
Houman Ashrafian -- Global Head of Research and Development
Yeah. So I'll be very quick, top thre. I think we're excited about the launch of Dupi in COPD, which my beloved colleague, Brian, has already talked about. I think bringing itepekimab alongside that for patients with -- who are former smokers will be very exciting and reinforcing our position in pulmonary inflammation and immunology.
I think it's an exciting time for amlitelimab as we continue the quickening drumbeat, particularly in disorders like asthma and in hidradenitis suppurativa. And finally, I'm very excited about the ongoing activity around our -- and completely internally generated bispecific activity in lucitanib. So those are my three, but it would be remiss of me not to comment on our three launches that are coming up.
Paul Hudson -- Chief Executive Officer
I'm excited about all of our Phase 2 programs, just to give it. I think the quality of what we're putting in means that we're more confident what comes out, of course, the normal risks around that. Probably a bit of overlapping with you, I mean, the itepekimab in COPD is game changer in former smokers, so I think that is going to be really interesting. And I could pick from three or four other things.
But on the later stage, I think it's primary progressive MS with tolebrutinib. I think they're all a big deal, and I think we can go a bit deeper into Phase 2s. But it's exciting year for us. No LOEs, mid-, high single-digit growth, strong rebrand in EPS, and pipeline catalysts.
I mean, that's where we want to go, top-line pipeline. Next question.
Operator
Yes. Next question from Peter Welford from Jefferies. Peter?
Peter Welford -- Analyst
Hi. Thanks for taking my questions. I hope you hear me. So I'll ask these two.
Firstly, just on Beyfortus. Can you just comment there on two things, both in terms of -- you said growth for 2025. Can we expect U.S. growth within your assumption for 2025? And what's with regarding the actual doses that you shipped at the moment in the U.S.
or indeed other markets, have they been used? Or are there still doses at the moment that are outstanding that are presumably likely to be used during the first part of the year as the season continues? And then secondly, I just wonder if you can comment on the potential for Lunsekimig there. I think our catalyst has been pushed into 2026. Is that -- does that reflect any changes to the data you're awaiting or any change to the Phase 2? Or is that purely just a timing from the point of view of recruiting and getting sufficient data onboard for the decision in ASPA Phase 3? Thank you.
Paul Hudson -- Chief Executive Officer
All right. Peter, thank you. Thomas, on Beyfortus U.S. growth and doses shipped.
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
Yeah. We don't -- thanks for the question, Peter. We don't provide exact number of doses shipped by provider or to each country, but I can still give a bit more color on 2025 versus what happened in 2024. So I think what's at the heart of your question for 2024 is how did we deliver the growth on 2024 and what does that mean for -- how should you think about 2025.
So first of all, we had a significant increase in supply in 2024. All the teams have been remarkably working on both sides of the partners to deliver that. That has enabled us to deliver in Q4 2024 enough doses to cover for the 2024 needs and the Q1 2025 needs because, as you know very well, RSV is not flu. And therefore, you have babies being born in January and February and some more catch up.
So there will be RSV immunization in January, February, and March, and we've shipped doses in Q4 2024 for that to happen. So this is what accounted for. I still believe that when it comes to penetration, there is an opportunity to increase in the U.S. in the coming years.
Of course, as always, when it comes to VCR, it's year by year progressively. There's a lot going on in the U.S., as you know very well, so we'll know more in the coming few weeks. But when you look at the profile of the product, we believe that there is a good space for the product moving forward.
Paul Hudson -- Chief Executive Officer
Thank you, Thomas. Houman, Lunsekimig?
Houman Ashrafian -- Global Head of Research and Development
Yeah. So as I said, thanks for asking the question. We're very proud of Lunsekimig combining the potency of TSLP and IL-13, best in class, firstin class, unprecedented molecule with the best pheno data that's out there. Your specific question was about the implication of the move into '27 of that.
I just want to -- I want to take a step back. I think the -- Sanofi has adopted a new discipline. This is part of our credo now. We're an organization that is robust in our use of data.
And what all we've done, as you can see, by outlining and dimensionalizing our pipeline timing, what we've tried to do is align that beautifully with ClinicalTrials.org. That's all we're doing. There is no implication for Lunsekimig. In fact, our commitment, both to moderate to severe asthma, as well as high-risk asthma, underlines the importance of this potential molecule to both increase the efficacy ceiling and possibly drive durability.
So simple answer to your question, we remain super confident.
Paul Hudson -- Chief Executive Officer
Thank you. It is really actually quite an exciting product given, in particular, on high-risk asthma. I mean, really -- I've been in asthma for 35 years, and I think this is a real incredible opportunity. OK.
Next question.
Operator
Next question from Jo Walton from UBS. Jo?
Paul Hudson -- Chief Executive Officer
Jo?
Jo Walton -- UBS -- Analyst
Thank you. Can you hear me?
Paul Hudson -- Chief Executive Officer
Yeah.
Jo Walton -- UBS -- Analyst
Excellent. I have two questions, please. Firstly, can I push you a little bit more on vaccines? Perhaps you can give us some idea of what you think the penetration today in relevant infants is in the U.S. and what that would be compared to some other sort of early pediatric vaccines, just to give us a sense of what the upside for the market there is.
And also within vaccines, can you tell us a bit more about the proportion of your sales that go to, let's say, adolescents with mandates? Because I think people are fearful that while everyone is going to be allowed the choice to have a vaccine going forwards, perhaps some of the mandates that really pushed people to vaccination may weaken, anything to do with individual choice, and you do tend to see lower vaccination rates. So I'd like you to discuss that a little bit in more detail, if you could. And could you also just please tell us a little bit more about healthcare reform in the U.S., your assumption of how much more you're going to have to pay for the Part D for those patients who are in catastrophic cover? And whether you see any offsets in terms of increased volume from lower patient copays, more adherence, for example, for things like Dupixent in the elderly.
Paul Hudson -- Chief Executive Officer
OK. Thank you. And, Francois, maybe I'll meet you on the last part on the assumptions. Some very specific questions, Thomas.
I'm not sure that you can answer them specifically, but you can certainly share what you think.
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
Yeah. And if I cannot answer them specifically, please call. That's why we're having quarterly calls. It might be some other quarters on the road.
What I mean by that, sorry. Hi, Jo. And back to your first question on the penetration in the U.S. It will be today in January a bit premature because I said before, you have the full data a few weeks after injection, and we know very well that RSV immunization are going to go see in January, February, and March.
So it's a bit early to say. I would expect the significant percentage of the U.S. birth cohort has been protected against RSV this year, but -- which means more than the majority, more than half, if you wish. But it's way too early to be a bit more precise.
Wait for a couple of one or two earning calls, and we'll do a bit more. It will give you more idea of further room to play. But there is -- as for any immunization coming into the market, it takes two or three years to pick in terms of VCR. So I think that's what we should expect for the product, especially the whole category.
Now on your second question, which is very different on percentage of adolescents with a corresponding to mandated or potentially mandated immunizations in the U.S., I understand where the question is coming from. A bit early there. I would say that if you want to have an idea, the immunizations you're talking about are some boosters in adolescents and some meningococcal shots in adolescents, so mening and boosters. However, if you're looking at the heart of your question, I personally do not believe that mandatory or not mandatory situations will make a big difference into the taxation coverage rates.
So we are not specifically worried for that. Of course, it's something we are monitoring as a field. But when you look at the clear benefits risk of our products moving forward between disease and not disease, those one-time immunizations are very clear in terms of safety and benefits. So again, there are some decisions that will happen in the coming few months or quarters maybe.
Let's see. Let's not have too many hypotheses. But whether or not mandatory situation are removed, I do not foresee today a major impact on ourselves.
Paul Hudson -- Chief Executive Officer
Thank you. Maybe Francois will let you --
Francois Roger -- Chief Financial Officer
Francois speaking. On the Medicare Part D, as I said, we expect a modest impact. It has been fully built in our 2025 guidance and budget, obviously. You talked about the volume elasticity.
There isn't – it's very difficult to assess, but we don't expect a significant positive volume elasticity out of it. But maybe I'll let Brian complement what I said.
Brian Foard -- Global Business Unit Head, Specialty Care
Yeah. I think as Francois said, we're a little bit less exposed versus some of the other organizations as well based upon the nature of our portfolio. Again, more innovative medicines and vaccines, so you tend to have a little bit less exposure there. As well, you see a lot of our business, even for Dupixent that we've said, 70% of our business really primarily comes from commercial versus again in the government channels.
But nevertheless, I think, Jo, you hit the nail on the head a little bit. What we haven't seen yet is will we actually have a little bit of volume improvement based upon the 2,000 annual out-of-pocket cap for patients which could lead to improved compliance for patients as well? So that's really to be determined, but that could be a potential slight offset, if you will. But we feel like we're in a very good position as we enter into 2025.
Paul Hudson -- Chief Executive Officer
OK. Thank you. Next question.
Operator
Next question is from Richard Vosser from J.P. Morgan. Richard?
Richard Vosser -- Analyst
Hi. Thanks for taking my questions. Two, please. One on amlitelimab.
Just as we think about the asthma data that's coming up and the 12-week dosing, could you just talk through your level of confidence that you'll see no detrimental reduction in efficacy there through the data? And then secondly, question on itepekimab. Obviously, Dupixent in COPD has a broader label. The launch is going exceptionally well from the script trends. But what implications does that have for the residual opportunity for itepekimab in COPD? Thanks very much.
Paul Hudson -- Chief Executive Officer
OK. Houman?
Houman Ashrafian -- Global Head of Research and Development
Yeah. Thanks, Richard. Two quick answers, and thank you for both questions. So just categorically, I obviously haven't seen the data, just to be clear, but I don't expect based on the pharmacodynamics of amlitelimab in atopic dermatitis, a condition which is both clinically overlapping and pathophysiology overlapping, I don't expect any drop off at week 12.
In fact, what we saw with amli is progressive increase throughout the duration of atopic dermatitis over 52 weeks, so I'm actually comfortable that the pharmacodynamic half life of amli will continue to grow throughout the course of asthma. We remain studiously awaiting the outcome of the amlitelimab asthma result, which should be this half of the year. And then specifically talk about itepekimab, just to challenge a little bit of the underlying premise of the question, while we were appropriately rewarded with a broad label for dupilumab with type 2 inflammation and chronic bronchitis, I think that it's the population of former smokers is a very substantial one and one that we led to science with both genetically and in terms of characterization of the patients while IL-33 secretion is substantially increased in bronchoalveolar lavage. So actually, if anything, the opportunity is very substantial in the form of smokers that have significant morbidity and mortality, so you said, with COPD, and we remain steadfast in our view that in a success scenario, which we'll know fairly soon, the combination of products will reach a peak sales of more than $5 billion a year.
Brian, any further thoughts?
Brian Foard -- Global Business Unit Head, Specialty Care
Yeah. I'd like to complement that with, again, like other therapeutic areas or disease states that we've gone in with our immunology portfolio, again, we are the first mover into the marketplace. So the biopetentration rate today is, again, just what we're doing with Dupixent in COPD, number one. And so as we go in there with both of these agents, we're going to be able to continue to grow patients, I think, on those therapies.
But just nicely, as you said, this is going to open up the population. And across the two, we've shown you that two by two before in the past. Itepekimab plus Dupixent will open up the opportunity to reach more than 80% of the COPD population. Again, around 2 million patients if you think about it across the G7, if you will.
So they both uniquely sit in unique places. They overlap ever so slightly, I think, in the above 300 EOS level in the type 2 COPD patient population. But I think the complement of the two really shows that we're going after this disease state from all angles because there will be different patient populations that will benefit from both drugs.
Houman Ashrafian -- Global Head of Research and Development
Brian, just a quick addition before we go back to Paul, which is I just want to remind everybody that itepekimab works in the highest interval and the lowest interval population equally in terms of relative risk reduction, and we do have a life cycle management strategy for itepekimab with CRS with MP. Our Dupixent story is now being rolled out in conjunction with our extremely valued partners at Regeneron.
Paul Hudson -- Chief Executive Officer
Thank you, Richard, for allowing Houman an opportunity to hijack the call. Next question, please.
Operator
Next question is from Florent Cespedes from Bernstein/Societe Generale. Florent?
Florent Cespedes -- Analyst
Good afternoon. Florent Cespedes from Bernstein. Two questions, please, on the pipeline. First on R&D budget.
With a long list of Phase 2 products, how will you manage the R&D budget going forwards? Good problem to have, but any color would be great. And my second question is for Thomas. We see more and more vaccines projects on the pipeline and on the new slot tables. I like the Phase 3 and the RSV for toddlers.
Could you maybe elaborate a bit, even though for 2026, but how you see these projects nicely, good addition to your existing RSV franchise? Thank you.
Paul Hudson -- Chief Executive Officer
Thank you, Florent. Managing the R&D budget, Francois?
Francois Roger -- Chief Financial Officer
Yeah. So Florent, Good afternoon. So for 2025, we expect a moderate increase in terms of R&D spend and investment, but don't forget that this comes over 900 billion euros plus increase in 2024 over 2023. And don't forget either that, obviously, as it is the case every year, we have projects being completed and new projects coming in, new clinical trial coming in and out.
So we are comfortable with the amount that we have for 2025 with a slight increase over 2024. Once again, it is 900 million euros plus increase. For 2026, we have not provided any indication for the time being. We are working on it.
Paul Hudson -- Chief Executive Officer
Thank you. All right. Good. Thomas?
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
Thanks for the question, Florent. Indeed, I like the way you frame the question, Florent. We're really looking forward to beat an aggressive franchise. So the first proof was the Beyfortus that we just talked about at the beginning of the call.
And as highlighted before, we want to make sure that we complement that with an RSV toddler approach for second season and thereafter, as well as with an elderly approach moving forward with respiratory combinations. For the RSV toddler candidate you're talking about, indeed Phase 3 2026 readout will be an important one. Why am I particularly excited about this one? Because it really complements very well what we're doing on Beyfortus. First season, you get your newborn protected with Beyfortus.
Second season, you want to make sure that you're able to provide what we call complete protection, i.e., we're targeting by being an intranasal product. We go to the mucosal immunity and to prevent not only lower respiratory disease but also upper respiratory disease, which is why we're going for the intranasal approach. We think it makes a lot of sense. There's a significant burden of disease still in kids one year, two years, and three years of age, and we believe that we have a step forward that of any competitor in this area.
That's why we're so excited about it.
Paul Hudson -- Chief Executive Officer
Thank you, Thomas. OK. Next question, please.
Operator
The next question is from David Risinger from Leerink. David?
David Risinger -- Analyst
Yes. Thanks very much, and congrats on all the strong business momentum. So my two questions are, first, what amount of Nuvaxovid sales are factored into 2025 sales guidance? And second, should we expect top-line press releases on Phase 2 trial results? Or will we need to wait for you to provide updates on them in conjunction with quarterly results calls? Thank you.
Paul Hudson -- Chief Executive Officer
OK. Thank you. Nuvaxovid, Thomas?
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
So maybe -- thanks for the question, David. As you know very well, we've announced last year the collaboration with Novavax to make sure that we are really looking forward at building what we believe could be a competitive -- not only competitive but a winning ticket for flu and COVID-19 combination. We always highlighted a couple of things that I'd like to stress again year to date. First of all, the big objective of this alliance is really to get to the right combination vaccines, flu and COVID, and we believe this market to be well served needs to ensure that there is the right level of safety, efficacy, and making sure that we have thermostability.
And of course, when you have two winning leaders in Fluzone High-Dose and Flublok, that's why we're happy that we have received the Fast Track designation for both Phase 1, 2 trials with Nuvaxovid. Of course, in 2025 and 2026 months forward, we're going to start commercializing Nuvaxovid first and foremost in the U.S. This, in 2025, the first reason is to learn about the COVID-19 market. It will be our first time in the U.S., so we need to understand, first of all, how is the market behaving there on COVID-19 and if our hypothesis or the fact that there is room for actually a better-tolerable COVID-nineteen vaccine is indeed confirmed into the marketplace.
You know very well that there is a PDUFA date in the U. S. for this product in April. So let's make sure that we first move forward to the PDUFA date, the level we have.
And of course, we have not disclosed any sales targets specifically for COVID-19 in 2025 and 2026. But as you know very well, this has been already included with the guidance that has been shared with Francois. Again, it's going to be progressive learning, building on the market, and then really launching at scale our combination.
Paul Hudson -- Chief Executive Officer
Yeah. Thanks, Thomas. And I think you said it about safety. I mean, it'd be interesting to have a non-mRNA COVID opportunity.
And if that has a lower burden, we don't know. But from a safety perspective, and that leads to being a stronger choice, we'll find out.
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
It could be what changes the COVID-19 PCR rate, which has been collapsing recently.
Paul Hudson -- Chief Executive Officer
I think we all remember what it was like to get the safety challenges on route. But anyway, OK. Houman, over to you. Are you going to do press releases for Phase 2?
Houman Ashrafian -- Global Head of Research and Development
Well, let me start with a very simple comment that we are very conscious of our materiality requirements. We will remain great stewards of that. That's the very first point beyond anything else. Now speaking specifically about clinical trials, we're also conscious of the embargo requirements of major meetings, and we need to be very thoughtful about that.
So we will absolutely not commit to publishing top-line Phase 2 data as they come, except where they're material or as part of a broader story. Please watch the broad story development around R&D and pipeline at Sanofi as we go. We are now becoming a science company.
Paul Hudson -- Chief Executive Officer
Thank you. Well said. OK, next question.
Operator
Next question is from Peter Verdult from BNP Exane. Peter?
Paul Hudson -- Chief Executive Officer
Peter.
Pete Verdult -- BNP Paribas Exane -- Analyst
Hello there. How are you?
Paul Hudson -- Chief Executive Officer
OK.
Pete Verdult -- BNP Paribas Exane -- Analyst
OK. It's Pete Verdult here from BNP Paribas Exane. Two questions. Houman, just on TL1A, really interesting asset in light of your data in UC and in particular Crohn's.
And also given the market seems to describe all the value of this class to competing assets. So recent KOL checkpoint of biomarker-led strategies being keenly sought. So I'm just seeking confirmation from you and your partner, Teva, that a biomarker will be deployed in your Phase 3 program, timings on the Phase 3 start, and whether you're considering going beyond IBD in your clinical development program. And then a very quick one for Francois on Dupixent, just simply on profitability dynamics in light of the COPD launch accelerating volumes and the manufacturing changes that you're putting through.
The simple question, Francois, I'm not asking for numbers, but just -- will 2025 be a significant sort of gross margin driver as it relates to Dupixent? Or do we need to be a little bit more conservative and wait until 2026? Thank you.
Paul Hudson -- Chief Executive Officer
OK. Thank you. The biomarkers question.
Houman Ashrafian -- Global Head of Research and Development
Yeah. Hi, Peter. Congratulations. I should start by saying, the TL1A story, yeah.
We did a great deal around the TL1A, and we were quiet until the science began to speak for itself. Based on preliminary data, we're very excited about how competitive our molecule is. I don't share necessarily your KOL calls feedback that standard of care will require biomarker-based stratification as an obligatory option. But of course, we are active in thinking about how we design our Phase 3 trials to deliver the maximum value for patients.
And in terms of life cycle management options, we are working diligently with our partner Teva to establish the best path forward with life cycle management options. More on this space in February ECCO meeting, And with that, I'll hand over to Francois and Brian for the next level of question.
Francois Roger -- Chief Financial Officer
Yes, Peter. On the question of gross margin, let me give you a little bit of insight. First of all, if you look at it four, five years ago, we were 4 to 5 percentage points lower than our peers in terms of gross margin. We have gone a long way because if you look at it in '24, we were basically at par with our peers, which gives a good illustration of the way we manage our portfolio and we manage some efficiency program as well.
In 2025, we expect to see some further progress in our gross margin, which is partly coming from Dupixent, but not only. By the way, our growth even in 2024, and this is the case in 2025 and in the coming years, I would say we are not Dupixent dependent just to increase our gross margin. So it's a combination of factors, but there is a fair contribution from Dupixent, but it's not only Dupixent. And I must say, the other new product launches have a fair contribution to it as well.
Paul Hudson -- Chief Executive Officer
Thank you. Anything to add? No? OK. Good. And Peter, we'll allow a little bit more time in the next call given the length of your new title.
Right. Next question, please.
Operator
The next question is from Steve Scala from TD Cowen. Steve?
Steve Scala -- Analyst
Thank you so much. Also on TL1A, has the best-in-class profile held up when the data is cut by biologic-naive and biologic-experienced patients? So that's the first question. And secondly, are you highly confident FDA will not ask for additional data, such as the PPMS data, for approval of tolebrutinib? And is the every-week monitoring for three months likely to be what's in the label? Thank you.
Paul Hudson -- Chief Executive Officer
OK. I think we're straight to you, Houman.
Houman Ashrafian -- Global Head of Research and Development
Yeah. Well, I don't want to undermine the discussion at ECCO later this month in terms of biologically naive and biological experience. Suffice it to say that we warmly invite you to the ECCO meeting to come and see the breadth of our data. I think you'll be pleasantly surprised.
And then very specifically with PPMS and SPMS, as you know, we're working closely with the FDA who encouraged us to submit for SPMS. Now as you know, the results of the PPMS result comes out later in the year. You can infer exactly what the dataset requirement will be for SPMS in that regard. Of course, any decision is subject to regulatory final active review.
And then with respect to the label and monitoring, I think you'll see that the FDA will adhere pretty closely to the Phase 3 clinical trial protocol that's been the standard in this kind of space in terms of intensiveness and regularity of the monitoring, and we anticipate that that will play out in the label. We should be upfront and straightforward in saying that Sanofi will support any decision by the regulator to provide the most thoughtful and safe path for patients to take this disease-modifying drug.
Paul Hudson -- Chief Executive Officer
Thank you, Houman. Next question, please.
Operator
Yes. Next question is from Emmanuel Papadakis from Deutsche Bank. Emmanuel?
Emmanuel Papadakis -- Analyst
Thanks for taking the question. Yes, Emmanuel Papadakis, Deutsche Bank. So maybe a question for Francois on the outlook for the operating margin. Just talk a little bit about potential for margin leverage.
I know it's – presumably, we should see revenue growth beyond well beyond 2025. We obviously have some financial considerations to take into account, the Regeneron co-development lines, royalty lines perhaps. Just your thoughts on whether steady, modest margin improvement in the midterm is a reasonable assumption. And then maybe a question for Houman on one of the handful of Phase 2 -- interesting Phase 2 data points are due this year, Belinotanfib, the oral TNF.
The Phase 1 data last year showed moderate efficacy. You've emphasized the potential as a combination opportunity with biologics. In that setting, we do this right to say it relatively soon. What are you hoping to see in that? And is the plan to take it forward now as a biologic combination Phase 3? Thank you.
Paul Hudson -- Chief Executive Officer
OK, Francois.
Francois Roger -- Chief Financial Officer
Yes, Emmanuel. From the medium term, I don't want to give a guidance. But directionally, I can help you a bit. Obviously, we expect a strong level of growth in the coming years solid level of growth, let's say.
Gross margin should continue to increase as well over the next coming years, as I said earlier. R&D, still early to say because -- I mean, it depends on what readout will be in the coming months. Directionally, G&A, you can expect that there will be flat-to-declining growth for the G&A part, but the sales and marketing part could increase a little bit because we have a fairly heavy program coming in. You were mentioning one important item, which is the profit sharing with Regeneron and the end of the reimbursement for R&D there, which is coming at the end of '26, beginning of '27.
So this will put a little bit of pressure probably in '27 on BOI. That being said, not in absolute value, I can tell you anyway. Our BOI will increase in absolute value each and every single year, but there is a possibility that it could be a little bit under pressure as a percentage of sales in '27 from what we can see today. It's still early.
Let's not forget that we have other items that are coming in like the Ambrutra royalties, which is going to grow significantly in the future as well. So, I think that's directionally that's what I can tell you without once again, I'm not providing you guidance for the medium term in terms of UI.
Paul Hudson -- Chief Executive Officer
Thank you. And I think you mentioned what you mentioned, -- That's what I just mentioned. So I think that is an important point to consider. Houman, all TNFR-1?
Houman Ashrafian -- Global Head of Research and Development
Yes. Thanks for the question. Firstly, we had pleasing results last year. The data are on track as we always committed to releasing that in the first half of this year and that's exciting.
Just to dimensionalize that for you. Yes, of course, there's a logic for it to be used in combination treatment strategy, particularly in the modern era where we have seen the combination, cytokine blockade can both increase the efficacy ceiling or surpass the efficacy ceiling and also provide durability. But I just want to be clear that, as well as combination therapies, remember Sanofi is now becoming a premier immunology powerhouse, and we have network effects internally where we can combine our molecules to generate greater value for patients. Just to be clear, in Clark's psoriasis, not only is there optionality for combination therapy, but depending on the results, we'll certainly consider using it as monotherapy, as a pre-biologic small molecule TNFR-1 signaling inhibitor.
I should remind everybody, however, that rheumatoid arthritis will read out later in the year, and that's an even more classically TNF-mediated disorder. We're excited to see that in monotherapy and combination therapy, and there are further indications supporting our broad life cycle management strategy in immunology.
Paul Hudson -- Chief Executive Officer
Yes. Let me just add on. The RA data will be important in -- given the TNF driver. When I think the question was also what are you hoping to see? If safety is right, the combination opportunity is significant, and then we'll see our mono as well.
but we look forward to that. OK. Next question, please.
Operator
Next question is from Shirley Chen from Barclays.
Unknown speaker -- -- Analyst
Shirley Chen here on behalf of Emily Field. Just moving back to Beyfortus by chance. So when we're ordering and contracting for Beyfortus for the next ISV season happen, we're just trying to understand a bit more about how much of first-mover advantage we still have here for the next season. And how do you consider the pricing of Beyfortus year over year? So in 2024, we saw a slight price increase by 5% according to American pediatrics.
So would you keep this trend? Or would you consider the price slightly differently for next season due to the potential competition? Another question on broader vaccine business. So obviously, there's a lot of attention on nominee to action. So are you concerned about like vaccine hesitancy as impacting your broader vaccine business given how widely publicized this is, even if there are no changes in policy? Thank you.
Paul Hudson -- Chief Executive Officer
Great. Thomas?
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
Two great questions. Thank you very much, Shirley. First of all, on Beyfortus, maybe a couple of points on your questions on the ordering patterns and RSV. First of all, from an ordering pattern perspective, I think it's very important to be clear that RSV is not flu, so the product is not changing every year.
It's not a seasonal product because of that. Even though immunizations are much more focused on some part of the year, it's the same product all year long. You don't have the same fee book effect that you have, for example, in influenza. I think that's an important differentiator to have in mind.
Having said that, most specifically for 2025, I think the last thing your question was about the fact that is there a first-mover advantage? I would say yes, just because of the product profile. Again, if you look at our product profile, we have an unprecedented body of reward evidence, showing massive reduction of hospitalization for newborns in countries that have used Beyfortus. By the way, not the same drop in hospitalization in countries that have decided to go other ways than with Beyfortus. I think that's an important factor to look at.
Now there will be, maybe specifically for 2025, a little bit of a first-mover advantage, just because if you look at the U.S. market, physicians, practitioners have used Beyfortus this year are comfortable with it, have really appreciated not only the efficacy, but the safety profile. And now that we have full supply, we are able to deliver whenever they want it in 2025. So we're really moving forward with this.
On the price point of Beyfortus in 2025, we are seeing the situation as no erosion of price point in 2025. We will hold there. On the second part -- second question, sorry, that you had on vaccine hesitancy, I don't think we are in the position to make a lot of conjecture about the future. But a couple of points, I think, that are important and valid to your questions.
First of all, is vaccine hesitancy a concern? Yes. Vaccine hesitancy is a concern for any vaccines head on this planet. But also on the fact that actually when there is vaccine hesitancy, there is less protection, and there is more disease. Interestingly, and that's what I want to close this point on, it's interesting to see that after three or four years of soft flu vaccine coverage rate, you see a comeback of influenza in the U.K., in France, a little bit in Japan and many other markets, where actually there is an increase in the severity of the number of hospitalization due to influenza this winter.
I think it's a good wakeup call. And if vaccine intensity goes too much the wrong way, we will see more and more disease, so we need more vaccines. We are welcoming two delegates about those, about the safety and the dignity they provide, and products.
Paul Hudson -- Chief Executive Officer
Thank you. Next question?
Operator
Yes. Next question from Eric Le Berrigaud from Stifel. Eric?
Eric Le Berrigaud -- Stifel Financial Corp. -- Analyst
Yes. Good afternoon. Thank you. Two questions.
First on Sarclisa. Any chance to get a better understanding of what your ambition is with the drug? It's a two-player market where the other guy is having 95% market share. If you're successful in closing the gap, it could be an exceptional opportunity for you. But it was first about data, and now you have the data.
It was then about formulation. You will soon have formulation. So probably the remaining question is the willingness to invest and support on a commercial side, a relaunch, or a stronger launch based on those data. So where are you? What's the market intelligence telling you? Is it too late? Is it becoming too much your market? Are you not having too much time, given patented Blackstone royalties? Anything to help us understand whether it can be a blockbuster for sure but a multi-blockbuster maybe.
And the second question, a very short one, given the current dynamics with Altuviiio, is that one your next blockbuster and no later than this year? Thank you.
Paul Hudson -- Chief Executive Officer
I'll take the second part. It'll be a blockbuster this year, Altuviiio. Brian, Sarclisa, ambition.
Brian Foard -- Global Business Unit Head, Specialty Care
Yes. Thank you so much for the question. I think you framed it really nicely. If you look at that CD-38 marketplace, again, this is a marketplace where they've the physicians like the CD-38 target for multiple myeloma.
We estimate that that marketplace could be somewhere in the range of 16 billion ueros by the 2030 timeframe. Now, as Houman said, we've had a real strong drumbeat of new information coming out. Of course, really favorable data. I think putting us in the first-line therapy but also the recent data that we've had for the on-body device.
And I think that's not to be underestimated. The subcu formulation offers a significant advantage in terms of patient and nurse experience. Utilizing an on-body delivery device, we believe this could ease the use and reduce some of the treatment burden, along with the strong efficacy and safety that we provided. So we absolutely do not think it's too late.
We absolutely believe we have all of the elements we need now to compete in the marketplace. We are investing behind this asset as we said before, and we believe it's going to be a multi blockbuster.
Paul Hudson -- Chief Executive Officer
Yes. Maybe I'll just add to just, Altuviiio, blockbuster this year. Sarclisa is a potential blockbuster next year in -- with the on-body device opportunity for nurse to manage multiple patients simultaneously is still -- from an oncology office perspective, still a major advantage because we do have great data. We do have great data.
We do have incredible medicine. These things matter in a head-to-head race. Last question, I think.
Operator
Last question from Ricardo Benevides from Santander.
Unknown speaker -- -- Analyst
Ricardo, Francois speaking. Just a couple of questions. First of all, it's difficult for us to comment on something that is not real today. Very, very difficult to comment.
Just be aware of the fact that, we have a significant industrial base in the U.S., which about 25% of what we market from what is coming from the U.S. So, we are a little bit under index versus our commercial presence there. But once again, very difficult to comment on something that is still at the plan for discussion. That's it.
Francois Roger -- Chief Financial Officer
Ricardo, Francois speaking. Just a couple of questions. First of all, it's difficult for us to comment on something that is not real today. Very, very difficult to comment.
Just be aware of the fact that we have a significant industrial base in the U.S., which about 25% of what we market from what is coming from the U.S. So we are a little bit under index versus our commercial presence there. But once again, very difficult to comment on something that is still at the plan for discussion. That's it.
Paul Hudson -- Chief Executive Officer
OK. Thank you very much, Francois. Thank you to everybody for the comments. We've got a busy year, I think, ahead of us.
We made significant progress in 2024. We upgraded our EPS guidance twice and exceeded it. We continue to advance to becoming a focused science-driven biopharma company. And as we enter 2025, we provided you guidance today, including mid-to-high single-digits sales growth expectation and a strong rebound in earnings, as well as a solid outlook for our pipeline.
So thank you for your interest in Sanofi. With this, we'll now close the call. Thank you.
Duration: 0 minutes
Call participants:
Thomas Kudsk Larsen -- Head of Investor Relations
Paul Hudson -- Chief Executive Officer
Francois Roger -- Chief Financial Officer
Houman Ashrafian -- Global Head of Research and Development
Luisa Hector -- Berenberg Capital Markets -- Analyst
Thomas Triomphe -- Executive Vice President, Sanofi Pasteur
Graham Parry -- Analyst
Brian Foard -- Global Business Unit Head, Specialty Care
Seamus Fernandez -- Analyst
Peter Welford -- Analyst
Jo Walton -- UBS -- Analyst
Richard Vosser -- Analyst
Florent Cespedes -- Analyst
David Risinger -- Analyst
Pete Verdult -- BNP Paribas Exane -- Analyst
Steve Scala -- Analyst
Emmanuel Papadakis -- Analyst
Unknown speaker -- -- Analyst
Eric Le Berrigaud -- Stifel Financial Corp. -- Analyst
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
