It was quite a Tuesday for Sanofi SA (SNY). While the pharma giant celebrated a major regulatory win in Europe, French tax investigators were literally walking through its Paris headquarters.
Tax authorities showed up unannounced at Sanofi's main office, accompanied by prosecutors and specialist aides, to search the premises as part of what's shaping up to be a significant financial investigation. According to Le Monde, French prosecutors confirmed that Sanofi is the subject of a preliminary investigation launched in January 2024 into alleged "money laundering of tax fraud," with potential complications including involvement by an organized group and possible criminal conspiracy.
The investigation apparently revolves around a financing structure Sanofi used through Société Générale that was connected to an acquisition more than ten years ago. Sanofi isn't exactly panicking—the company says it followed all applicable laws, is protecting its legal rights, and plans to cooperate fully with authorities. Still, surprise visits from tax investigators aren't exactly the kind of publicity any company wants.
Meanwhile, in considerably better news for Sanofi, the company announced alongside Regeneron Pharmaceuticals, Inc (REGN) that the European Commission approved Dupixent (dupilumab) for treating moderate-to-severe chronic spontaneous urticaria in adults and adolescents 12 years and older. That's a fancy way of saying persistent hives and itching that don't respond well to standard antihistamines and haven't been treated with anti-immunoglobulin E therapy.
The approval draws on data from two Phase 3 clinical trials in the LIBERTY-CUPID program. Both studies tested Dupixent as an add-on to standard antihistamine treatment versus antihistamines alone. The results showed that Dupixent significantly reduced urticaria activity—basically a combination measure of itch and hives—along with individual measures of itch and hive severity compared to placebo at the 24-week mark.
Even better, Dupixent increased the percentage of patients who achieved well-controlled disease and complete response at 24 weeks compared to placebo. For patients who've been struggling with chronic hives, this represents a meaningful new treatment option.
Price Action: REGN stock climbed 2.66% to $781.69, while SNY stock gained 1.55% to $49.91 at the last check on Tuesday.