Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 147

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 147
---
 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 $900 million ( €856 million ), which was recognized within Other operating income on the date of receipt. The same line item also includes a regulatory milestone payment of $100 million ( €96 million ) 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 ( €116 million in 2023, €111 million 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 ( €117 million in 2024, €196 million in 2023, €952 million in 2022) are presented within Net cash provided by/(used in) operating activities in the consolidated statement of cash flows.

| 66 | SANOFIFORM 20-F2024 |

| PART I                                               |
| ITEM 5. Operating and Financial Review and Prospects |

The amendment to the terms of the IO LCA resulted in Sanofi recognizing an accelerated amortization charge of €226 million 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, including “standstill” provisions that contractually prohibit Sanofi from seeking to directly or indirectly exert control of Regeneron or acquiring more than 30% of Regeneron’s capital stock (consisting of the outstanding shares of common stock and the shares of Class A stock). This prohibition remains in place until the earlier of (i) the later of the fifth