French financial authorities probe drug gaint Sanofi over financial reporting irregularities
Nov. 7 (UPI) -- French drug giant Sanofi is under investigation by judicial authorities for allegedly putting out false financial reporting statements, possibly to manipulate the market.
Parquet National Financier prosecutors are eight months into a probe surrounding the dissemination of misleading information related to the drugmaker's financial communications, a judicial source told Bloomberg on Tuesday.
Sanofi insisted that as a listed company its financial information was "accurate, precise and sincere," fully audited by two auditing firms and denied knowledge of the investigation.
"Sanofi is not aware of any preliminary investigation on its 2017 accounts or other matter by the Parquet National Financier. We stand by the accuracy of our accounts," Sanofi said in a statement to CNBC.
French online news outlet La Lettre, which first reported the probe, said it was linked to the 2017 launch of Sanofi's blockbuster eczema jab, Dupixent.
The asthma and skin drug is the company's best-selling product with sales of Dupixent expected to top $10 billion in 2023. Sales could go much higher if trials to confirm its effectiveness in treating a chronic lung disorder are successful.
Sanofi's share price was down 0.5% at $90.20 a share in late afternoon trade on the Euronext exchange in Paris, after plunging as much as 2.5% earlier.
The stock had been trading at $107 or above for weeks prior to Sanofi issuing a shock 2024-2025 profits warning Oct. 27 and saying it was putting its consumer health business up for sale, sending the price spiraling down 20%.
