Core Points - Sanofi, a global leader in vaccines, is under investigation by the French judiciary for allegations of "tax fraud laundering" and "criminal conspiracy" [2] - The investigation is linked to loan financing arrangements provided by Société Générale, which reportedly facilitated tax avoidance strategies for several large French companies, including Sanofi [2] - Sanofi is accused of manipulating transfer pricing by inflating royalty fees paid to its Irish subsidiary for diabetes drug patents, resulting in a 30%-40% reduction in tax revenue for France from 2019 to 2023 [2] Summary by Sections Investigation Details - Over 30 law enforcement officers conducted a raid at Sanofi's headquarters in Paris on November 25 [2] - The investigation has been ongoing since January of the previous year and has now entered a criminal phase, potentially leading to coordinated audits across multiple EU countries [2] Financial Implications - The French tax authorities have traced €400 million in funds transferred through Sanofi's Irish subsidiary, suspecting tax evasion [3] - The funds were reportedly routed through Dublin to entities in Bermuda and the Netherlands, raising concerns about discrepancies between transferred funds and reported R&D expenditures [3] Company Response and Market Impact - Sanofi maintains that it has complied with all applicable laws and regulations and intends to protect its legal rights while cooperating with authorities [3] - Following the news of the investigation, Sanofi's stock price has dropped approximately 3.5% [3] - This marks the second investigation for Sanofi this year, with a previous inquiry related to alleged antitrust violations concerning its vaccine manufacturing practices [3]