The news: Sanofi is willing to pursue acquisitions beyond its typical $2 billion to $5 billion deal range, its CFO said during its Q3 2026 earnings call. The drugmaker is seeking late-stage or marketed treatments in immunology, rare diseases, and vaccines as it prepares for Dupixent's patent expirations beginning in 2031.

Why it matters: Sanofi's growing reliance on its top drug adds pressure to find new sources of revenues before the drug faces competition following its patent expirations. Dupixent sales rose 35% YoY to about $6.5 billion in Q3, accounting for 39% of Sanofi’s sales. The drug is approved for nine conditions. Combined sales of Sanofi’s recently launched medicines totaled about $1.6 billion in Q3, just 24% of Dupixent’s sales, showing the gap those newer products must close. Sanofi’s willingness to spend more reflects a broader trend. Average biopharma deal size rose to $3.1 billion in H1 2026 from $2.7 billion in 2025, per a July IQVIA report.

Sanofi is also developing new immunology treatments, but those drugs remain years from reaching the market. Under an expanded partnership with Regeneron announced this month, the companies will develop four new drug candidates. Only one has entered clinical trials, with the other three expected to begin testing in 2027.

Implications for pharma companies: Acquiring late-stage or marketed drugs would likely help Sanofi diversify revenues before Dupixent’s patent expirations. But those deals may also require it to move quickly on launch planning for late-stage treatments and coordinate sales and physician outreach for acquired products.

Sanofi isn't alone in preparing for patent-related revenue losses. DrugPatentWatch estimates that $200 billion to $400 billion in branded drug revenues may be at risk from patent expirations by 2030. With many major drugmakers seeking new revenue sources, competition for promising acquisition targets could drive up deal prices, putting more pressure on drugmakers to deliver the sales needed to justify those investments.