Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 149

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 149
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) based on 25% of net sales in other territories. The share of commercial profits and losses due to or from AstraZeneca is recognized as a component of operating income, within the line items Other operating income or Other operating expenses . In addition, Sanofi and AstraZeneca share development costs 50 /50, with Sanofi’s portion recognized within the income statement line item Research and development expenses . On April 9, 2023, Sanofi and AstraZeneca simplified their contractual agreements for the development and commercialization of Beyfortus (nirsevimab) in the US. Sanofi thereby obtained control of all commercial rights to Beyfortus (nirsevimab) in the US, and ended the sharing of commercial profits between the two partners in that territory. In line with the terms of the revised agreements and in accordance with IAS 38, Sanofi recognized an intangible asset of €1.6 billion for the fair value of the additional US rights. On the same date, AstraZeneca and Sobi ended their participation agreement, signed in 2018, which transferred the economic rights for the US territory to Sobi. Sanofi simultaneously entered into an agreement with Sobi relating to direct royalties on US net sales of Beyfortus (nirsevimab). In line with the terms of that agreement, on April 9, 2023 Sanofi recognized a financial liability amounting to €1.6 billion . That liability is classified as a financial liability at amortized cost under IFRS 9. Other than royalty payments, subsequent movements in the liability comprise (i) the unwinding of discount and (ii) changes in estimates of future cash outflows for royalty payments. Those movements will be recognized in the income statement within Net financial income/(expenses) in accordance with paragraph B.5.4.6 of IFRS 9. As of December 31, 2024 the liability was remeasured by an amount of € 291 million . As of December 31, 2023 the liability was remeasured by an amount of €541 million , reflecting the strong success of the US launch of Beyfortus, which led to sales forecasts being revised upward from the initial estimate. The resulting adjustment was recognized within Financial expenses . For territories other than the US (except for China, which is now considered a “major market,” with profits/losses shared 50 /50 with AstraZeneca), the existing agreement between AstraZen