Market Capitalization $112.8 Billion

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F BUY November 19, 2017 BUY RATING SINCE 04/25/2017 TARGET PRICE $56.90 SNY BUSINESS DESCRIPTION Sanofi researches, develops, manufactures, and markets therapeutic solutions. The company operates in two segments, Pharmaceuticals and Vaccines. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income EPS RETURN ON EQUITY (%) SNY Ind Avg S&P 500 Q NA Q NA Q NA P/E COMPARISON Sector: Health Care Sub-Industry: Pharmaceuticals Source: S&P Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History HOLD HOLD BUY Volume in Millions COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History TARGET PRICE $ SNY EPS ANALYSIS¹ ($) Ind Avg S&P 500 RECOMMENDATION We rate (SNY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any nesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, increase in stock price during the past year, expanding profit margins and growth in earnings per share. Although no company is perfect, currently we do not see any significant nesses which are likely to detract from the generally positive outlook. HIGHLIGHTS The net income growth from the same quarter one year ago has significantly exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income increased by 10.1% when compared to the same quarter one year prior, going from $1, million to $2, million. Q Q Q Q Q Q Q NA = not available NM = not meaningful Q Q Q Q Compustat fiscal year convention is used for all fundamental data items. Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. The gross profit margin for is rather high; currently it is at 64.86%. Regardless of SNY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNY's net profit margin of 17.96% compares favorably to the industry average. 's earnings per share improvement from the most recent quarter was slightly positive. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, reported lower earnings of $1.80 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($3.27 versus $1.80). PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -2% 12% UNFAVORABLE 20% BMY LLY EBITDA Margin (TTM) AZN JNJ FAVORABLE AGN NVO MRK PFE 50% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $61.3 Billion and $373.1 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -2% 12% AGN UNFAVORABLE -14% Earnings Yield (TTM) BMY FAVORABLE GSK LLY JNJ NVO SNY MRK NVS AZN PFE 6% Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -1.5% and 11.4%. Companies with NA or NM values do not appear. INDUSTRY ANALYSIS US pharmaceutical companies are involved in the discovery, manufacturing, distribution, and research of generic and branded drugs. The industry accounts for 27.3% of the healthcare sector and is capital-intensive with exorbitant R&D costs. Most companies are mature and characterized by high margins and higher dividend pay-outs. Major players include Pfizer (PFE), Bristol-Myers Squibb (BMY), Abbott Laboratories (ABT), and Eli Lilly (LLY). The industry employs more than 400,000 in the US. The 50 largest companies control over 80% of the market. The industry faces unprecedented challenges from stringent environmental regulations and patent expirations on billion-dollar products. Industry experts believe that generic competition will wipe out more than $60 billion from US industry sales over the next five years as more than three dozen drugs lose patent protection. Merck lost a $3 billion patent protection for its osteoporosis drug Fosamax in 2008 while Eli Lilly lost an estimated 90% of Zyprexa sales. The FDA is rejecting more drugs on safety concerns and a lack of compelling evidence of definite advancement from existing drugs. The US government enacted the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) in 2003 to provide prescription drug benefits to the elderly and disabled. Medicare Part D, a component of MMA, which came into effect in 2006, altered the revenue model of pharma companies. Horizontal and vertical integration has created health maintenance organizations (HMOs) and pharmacy benefit management firms (PBMs). In order to cut costs and remain competitive, the US pharma majors have been outsourcing research to low-cost service providers in India and China. The promising era of personalized medicine has begun. Dozens of exciting new drugs for the treatment of dire diseases such as cancer, AIDS, Parkinson's, and Alzheimer's are either on the market or are very close to regulatory approval. The industry has shifted its focus from blockbuster drugs (chemistry-based drugs) to specialized products, geared towards specific disorders. Growth in American drug purchases will continue to be supported by a rapidly aging population, inflation, and the introduction of expensive new drugs. PEER GROUP: Pharmaceuticals Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) SNY , , , NVO NOVO NORDISK A/S , , , LLY LILLY (ELI) & CO , , , AZN ASTRAZENECA PLC , , , AGN ALLERGAN PLC ,322 NM 15, , JNJ JOHNSON & JOHNSON , , , NVS NOVARTIS AG , , , PFE PFIZER INC , , , GSK GLAXOSMITHKLINE PLC , , , MRK MERCK & CO , , , BMY BRISTOL-MYERS SQUIBB CO , , , The peer group comparison is based on Major Pharmaceuticals companies of comparable size. PAGE 2

3 COMPANY DESCRIPTION Sanofi researches, develops, manufactures, and markets therapeutic solutions. The company operates in two segments, Pharmaceuticals and Vaccines. It offers Cerezyme and Cerdelga for Gaucher disease, Myozyme and Lumizyme for Pompe disease, Fabrazyme for Fabry disease, and Aldurazyme for mucopolysaccharidosis Type 1; and Aubagio, an oral immunomodulatory and Lemtrada, a monoclonal antibody to treat multiple sclerosis. The company also provides Jevtana, a taxane derivative for prostate cancer; Taxotere, a taxoid for various cancers; Eloxatin, a platinum agent for colorectal cancer; Thymoglobulin, a immunosuppressive and immunomodulating agent; Mozobil, a hematopoietic stem cell mobilizer for hematologic malignancies; and Zaltrap, a protein for metastatic colorectal cancer. In addition, it offers Lantus, Apidra, and Insuman human insulins; Toujeo, an oral sulfonylurea; Lyxumia/Adlyxin, a GLP-1 receptor agonist; and Soliqua 100/33/Suliqua, an insulin glargine and lixisenatide combination to treat diabetes; and Praluent, a cholesterol-lowering drug and Multaq, an anti-arrhythmic drug to treat cardiovascular diseases. Further, the company provides Plavix, an anti-platelet agent for atherothrombotic conditions; Lovenox, a heparin for the prophylaxis and treatment of venous thromboembolism and acute coronary syndrome; Aprovel and CoAprovel anti-hypertensives; Renagel and Renvela oral phosphate binders for patients undergoing dialysis; Synvisc and Synvisc-One viscosupplements for patients with osteoarthritis; Stilnox for treatment of insomnia; and Allegra, an anti-histamine for the treatment of seasonal allergic rhinitis and uncomplicated hives. Additionally, it offers consumer health care products and generic medicines; and pediatric, influenza, adult and adolescent booster, meningitis, and travel and endemic vaccines. The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May Sanofi was founded in 1973 and is headquartered in Paris, France. 54, Rue La Boetie Paris FRA Phone: Employees: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of SNY shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 3.5 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, SNY has a growth score better than 60% of the stocks we rate. Total Return 2.0 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 30% of the companies we cover. Efficiency 2.5 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 40% of the companies we review. Price volatility 2.5 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 40% of the stocks we monitor. Solvency 5.0 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 90% of the companies we analyze. Income 4.5 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 80% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial FINANCIAL ANALYSIS 's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit Q4 FY E 2017(E) 3.42 E 2018(E) INCOME STATEMENT Net Sales ($mil) 11, , EBITDA ($mil) NA NA EBIT ($mil) 3, , Net Income ($mil) 2, , BALANCE SHEET Cash & Equiv. ($mil) NA NA Total Assets ($mil) NA NA Total Debt ($mil) NA NA Equity ($mil) NA NA PROFITABILITY Gross Profit Margin 64.86% 65.74% EBITDA Margin NA NA Operating Margin 25.69% 27.95% Sales Turnover NA NA Return on Assets NA NA Return on Equity NA NA DEBT Current Ratio NA NA Debt/Capital NA NA Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) 2,522 2,574 Div / share EPS Book value / share NA NA Institutional Own % NA NA Avg Daily Volume 1,146,748 1,546,685 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 4/25/2017. As of 11/16/2017, the stock was trading at a price of which is 11.9% below its 52-week high of $50.65 and 16.1% above its 52-week low of $ Year Chart HOLD: $ HOLD: $39.05 BUY: $46.40 $55 $50 $45 $40 MOST RECENT RATINGS CHANGES Date Price Action From To 4/25/17 $46.40 Upgrade Hold Buy 8/23/16 $39.05 Downgrade Buy Hold 7/28/16 $42.60 Upgrade Hold Buy 12/22/15 $42.80 Downgrade Buy Hold 11/16/15 $43.12 No Change Buy Buy Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 11/16/2017) 43.95% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: VALUATION BUY. This stock's P/E ratio indicates a discount compared to an average of for the Pharmaceuticals industry and a discount compared to the S&P 500 average of The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, proves to trade at a discount to investment alternatives within the industry. Price/Earnings SNY Peers Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. SNY is trading at a discount to its peers. Price/Projected Earnings SNY Peers Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. SNY is trading at a discount to its peers. Price/Book SNY NA Peers Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. Ratio not available. Price/Sales SNY 2.81 Peers Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SNY is trading at a significant discount to its industry on this measurement. DISCLAIMER: Price/CashFlow SNY NA Peers Neutral. The P/CF ratio is the stock s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. Price to Earnings/Growth SNY 0.27 Peers 0.72 Discount. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. SNY trades at a significant discount to its peers. Earnings Growth lower higher SNY Peers Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. SNY is expected to have an earnings growth rate that significantly exceeds its peers. Sales Growth lower higher SNY 6.97 Peers Lower. A sales growth rate that trails the industry implies that a company is losing market share. SNY significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at PAGE 5