Despite increased R&D expenses and higher costs driven by ongoing restructuring and new product launches in 2024 and the start of 2025, Moody's anticipates that Sanofi will maintain leverage (Moody's-adjusted gross debt/EBITDA) below 2.0x in 2025-26 with EBITDA and cash flows supported by mid-single-digit sales growth and margin improvements from Dupixent and recent products launches like Beyfortus and Altuviiio. While discussions around policy changes for pharmaceuticals in the United States, such as tariffs and price adjustments, introduce some uncertainty, Moody's believes these developments are unlikely to have a significant impact on Sanofi's credit quality in most scenarios. Sanofi is well diversified geographically, with substantial manufacturing and research and development operations in the US, and has the financial flexibility to adapt its operations and supply chain if trade barriers arise. Sanofi has excellent liquidity. As of December 31, 2024, Sanofi had cash and cash equivalents of €7.4 billion, largely covering €4.2 billion of short-term debt.