Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 368

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 368
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 shared equally in profits and losses generated by the commercialization of collaboration products, except that Sanofi was entitled to an additional portion of Regeneron’s profit-share (capped at 10% of Regeneron’s share of quarterly profits) until Regeneron had paid 50% of the cumulative development costs incurred by the parties under the IO Discovery Agreement, as amended. In June 2022, Sanofi and Regeneron restructured their IO LCA. Under the terms of the Amended and Restated IO LCA, Regeneron holds exclusive worldwide licensing rights to Libtayo with effect from July 1, 2022. In July 2022, Sanofi received as consideration an upfront payment of $ 900million ( € 856million ), which was recognized within Other operating income on the date of receipt. The same line item also includes a regulatory milestone payment of $ 100million ( € 96million ) following the US FDA approval in November 2022 of Libtayo in combination with chemotherapy as a first line treatment for NSCLC (non-small cell lung cancer). In addition, Sanofi is entitled to royalties of 11% and to milestone payments ( € 116million in 2023, € 111million in 2022) linked to global net sales of Libtayo; those royalties are recognized within Other operating income in line with the pattern of sales . All of the cash inflows relating to the above items ( € 117million in 2024, € 196million in 2023, € 952million in 2022) are presented within Net cash provided by/(used in) operating activities in the consolidated statement of cash flows. The amendment to the terms of the IO LCA resulted in Sanofi recognizing an accelerated amortization charge of € 226million in 2022 ; this was allocated to the Libtayo product rights included within the residual carrying amount of the intangible asset recognized in July 2015 to reflect rights to an antibody targeting the immune checkpoint receptor PD-1 (programmed cell death protein-1) under the Sanofi/Regeneron alliance. The transaction also includes time-limited transitional services agreements with Regeneron which include manufacturing, distribution (for which Sanofi acts as agent), and promotion. Investor agreement In 2014 and 2020, Sanofi and Regeneron amended the investor agreement entered into by the two companies in 2007. Under the terms of the amendments, Sanofi accepted various restrictions