Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 33

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 33
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 with veto rights only on certain matters, we will not control operational decisions and Opella’s success will depend on its ability to retain talent and skilled professionals and take advantage of the opportunities that lie ahead in its segment. Therefore, our remaining holding in Opella may fall in value if Opella’s strategy does not deliver the expected benefits. The globalization of our business exposes us to increased risks in specific areas As part of the presentation of our strategy in December 2019, we identified our strong presence in China among our core drivers, with revenue amounting to 6.5% of our net sales in 2024. The difficulties in operating in emerging markets, a significant decline in the anticipated growth rate or an unfavorable movement of the exchange rates of currencies against the euro could impair our ability to take advantage of growth opportunities and could adversely affect our business, results of operations or financial condition. For instance, if a long-lasting epidemic and prolonged or repeated restrictive measures to control the outbreak were to result in an economic slowdown in any of our targeted markets, it would reduce our sales due to lower healthcare spending on other diseases and fewer promotional activities, and could significantly impact our business operations. Furthermore, it is not possible to predict if or how such health crisis would impact any affected jurisdiction, or to what extent (see also “— Global economic conditions and an unfavorable financial environment could have negative consequences for our business” above).

| SANOFIFORM 20-F2024 | 13 |

| PART I                  |
| ITEM 3. Key Information |

Emerging markets also expose us to more volatile economic conditions; legal, regulatory and political instability, both globally and locally (including a backlash in certain areas against free trade); competition from multinational or locally based companies that are already well established in these markets; the inability to adequately respond to the unique characteristics of emerging markets (particularly with respect to their underdeveloped judicial systems and regulatory frameworks); difficulties in recruiting qualified personnel or maintaining the necessary internal control systems; difficulties that may adversely affect our ability to supply our products, potential exchange controls; weaker intellectual property protection; higher crime levels (particularly with respect to counterfeit products); and compliance issues including corruption and fraud (see particularly “— Claims and investigations relating to ethics and business integrity, competition law, marketing practices, pricing, human rights of workers, and other legal matters could adversely affect our business, results of operations and financial condition” above). Given the increasing globalization of our business, if relations between the United States, European Union countries and other governments deteriorate, our business and