Sanofi SA shares plunged 5.13% in pre-market trading on Thursday, as the French pharmaceutical giant's first quarterly report under new CEO Belén Garijo failed to reassure investors despite a significant upgrade to its full-year sales forecast. The stellar performance of blockbuster drug Dupixent was overshadowed by deepening concerns over the company's shrinking research pipeline and a lack of transformative strategic updates.

The earnings report showed Sanofi posting strong second-quarter results, with revenue reaching €11.6 billion and core operating profit of €3.29 billion, both well above analyst expectations. Dupixent, the anti-inflammatory drug co-developed with Regeneron, surged 38% to €5.15 billion in sales, prompting the company to raise its 2030 sales target for the drug to €25 billion. However, the optimism was short-lived as investors zeroed in on the company's R&D overhaul. Under Garijo's leadership, Sanofi terminated more than eight development projects during the quarter, including experimental eczema drug amlitelimab—once viewed as a potential successor to Dupixent—as well as itepekimab for lung disease and balinatunfib for psoriasis. The company recorded an asset impairment loss of €952 million related to these pipeline setbacks.

With key patents for Dupixent expected to expire in the early 2030s, the market has grown increasingly anxious about Sanofi's ability to fill the looming revenue gap. Analysts noted that the lack of a "wow factor" strategic update from the new CEO, combined with the aggressive culling of internal drug candidates, was enough to offset the positive guidance raise. The stock's year-to-date decline of approximately 3% also reflects broader underperformance relative to industry peers, as the pipeline drought continues to weigh heavily on valuation.