Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 26

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 26
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 are also subject to the risk that contract research organizations or other vendors (for instance regarding digital activities) retained by us, or our collaboration partners may not perform effectively. Any conflicts, difficulties or litigation with our partners during these agreements or at the time of their renewal or renegotiation, or any disruption in the relationships with our partners, may affect the development, manufacturing, launch and/or marketing of certain of our products or product candidates and may cause a decline in our revenues or otherwise negatively affect our results of operations. We are subject to the risk of non-payment by our customers (1) Our customers, which consist principally of wholesalers, distributors, pharmacies, hospitals, clinics, and government agencies, present risks related to delayed payments or even non-payment. This risk is accentuated by recent concentrations among distributors and retailers, as well as by ongoing uncertainties in global credit markets and economic conditions, in particular in emerging markets. As a result, we may be affected by fluctuations in the buying patterns of such customers. The United States presents specific customer credit risk issues because of the concentrated pharmaceutical distribution system: in 2024 our three main customers represented respectively 15% , 11% and 8% of our consolidated net sales, respectively. We are also exposed to large wholesalers in other regions, particularly in Europe. An inability of one or more of these wholesalers to honor their debts to us could adversely affect our financial condition (see Note D.34. to our consolidated financial statements included at Item 18. of this annual report). In certain countries, some of our customers are public or subsidized health systems. The economic and credit conditions in these countries could further extend the average collection period for accounts receivable, putting additional strain on our working capital.

(2) The information in this section supplements the disclosures required under IFRS 7 as presented in Note B.8.7. to our consolidated financial statements, provided at Item 18. of this annual report.

| 10 | SANOFIFORM 20-F2024 |

| PART I                  |
| ITEM 3. Key Information |

Global economic conditions and an unfavorable financial environment could have negative consequences for our business (2) Over the past several years, growth of the global pharmaceutical market has increasingly been tied to global economic trends. In this context, a substantial and lasting slowdown or instability of the global economy, major national economies or emerging markets could negatively affect the global pharmaceutical market's growth and, as a result, adversely affect our business. For example, unpredictable geopolitical conditions that currently exist in various parts