Photograph of Sanofi headquarters in Paris on May 31, 2023 (AFP/Archives/ALAIN JOCARD)
The pharmaceutical giant Sanofi is the target of an investigation by the French justice system for price manipulation and dissemination of false or misleading information in its financial communication around its flagship drug Dupixent.
The National Financial Prosecutor’s Office (PNF) opened a preliminary investigation in March targeting Sanofi for “dissemination of false or misleading information and price manipulation, entrusted to the financial brigade” and relating “to the financial communication of the Sanofi group”, indicated Tuesday a judicial source, confirming information from La Lettre.
When asked, this judicial source did not indicate whether searches or police custody had taken place to date.
The investigation concerns a “problem in estimating sales of Dupixent”, the French pharmaceutical group’s flagship product, a source close to the matter added.
According to La Lettre, it is the financial communication surrounding the launch of the molecule at the end of 2017 which is in the crosshairs of the justice system.
– “Not aware” of the investigation –
Questioned by AFP, Sanofi claims not to be “aware of any preliminary investigation by the National Financial Prosecutor’s Office into its 2017 accounts or otherwise” and “reserves the right to take legal action against any false or defamatory allegation”.
“As a listed company, the financial information that Sanofi publishes is accurate, precise and sincere, and is also duly audited by two auditing firms,” assures the group in a written reaction sent to AFP.
On the Paris Stock Exchange, Sanofi shares closed Tuesday down 0.61% at 84.42 euros.
Developed since 2009 by Sanofi and its American partner Regeneron against asthma and severe eczema, and launched on the market in 2018, Dupixent quickly established itself as Sanofi’s growth engine.
It compensated for the drop in sales of the previous blockbuster, Lantus, in the treatment of diabetes, which has faced competition from generics since the patent expired in 2015.
Dupixent – its scientific name dupilumab – is a monoclonal antibody approved to treat various diseases, such as nasal polyposis (sinus pathology), prurigo nodularis (skin disease) or even eosinophilic esophagitis (chronic lung disease). ‘esophagus).
– The Dupixent nugget –
More than 750,000 patients worldwide are treated with this drug, approved for one or more of these indications in more than 60 countries, according to Sanofi.
Since his arrival as CEO of the group in 2019, Briton Paul Hudson has focused on the potential of Dupixent, with the objective of expanding sales and obtaining new therapeutic authorizations.
The results are dazzling: sales, which were around 380 million euros in the third quarter of 2019, climbed to 2 billion euros at the end of 2019. And the drug is marketed in 34 countries compared to 18 countries at the arrival of Paul Hudson.
Between 2020 and 2021, they increase from 3.5 to 5 billion euros.
In the third quarter, Dupixent “is approaching 11 billion euros in sales at an annual rate”, Mr. Hudson indicated at the end of October during the presentation of quarterly results.
Investors, however, are wondering about the group’s dependence on this medicinal nugget, the patent for which will expire in 2031.
At the end of October, Sanofi sought to reassure them by announcing that it was strengthening its investments in research and development to develop innovative drugs likely to become new engines of growth. But these investments will weigh on profitability and the group had to abandon its margin objective for 2025, which greatly displeased the market.
To support these R&D expenses, the group, which wants to focus on innovative drugs and vaccines, has announced a savings plan totaling up to 2 billion euros between 2024 and the end of 2025.
He met with investors on December 7 in New York, with the new head of global R&D Houman Ashrafian, to provide them with details on the distribution of investments dedicated to research.
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© 2023 AFP
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