Berenberg Says Sanofi, Regeneron's Expanded Immunology Collaboration Extends 'Dominance' in Atopic Diseases

12:51 AM EDT, 10/07/2026 (MT Newswires) -- Berenberg views Sanofi's (SAN.PA) expanded immunology development collaboration with Regeneron Pharmaceuticals (RGO.F) worth up to $8 billion as a strategy to "replay the playbook" and extend their "dominance" in atopic diseases. "Sanofi and Regeneron are ready to move forward on four early-stage assets to replace Dupixent on its patent expiry after 2031. The new development collaboration will improve on the dominant, exquisite biology of Dupixent (anti-IL-4/-13), adding value for patients in the form of lower dosing frequency and more specific targeting by disease. Given the terms of the new collaboration, we estimate that the new assets need to deliver over EUR12bn of sales to achieve a return above cost of capital. Sanofi can now move forward to deploy its EUR30-40bn of balance sheet capacity on business development," according to a Tuesday note. Outside this partnership, the research firm said catalysts for Sanofi are "limited," and the French drugmaker needs mergers and acquisitions to replenish its late-stage pipeline. Key upcoming readouts include phase 3 data for frexalimab in multiple sclerosis and phase 2 data for brivekimig in hidradenitis suppurativa, both expected in the second half of 2027. On the earnings side, analysts revised their full-year 2027 and 2028 sales projections up by 0.3%, while raising EPS forecasts for both years by 0.5%. Conversely, the 2026 EPS estimate was nudged down by 0.1%. Berenberg affirmed its buy rating and price target of 105 euros on the stock.