On Tuesday, November 25 2025, French prosecutors and tax investigators entered Sanofi’s Paris headquarters as part of a broader probe into a Société Générale financing structure used in an acquisition more than a decade ago. The raid was the first public sign that the company is under scrutiny for alleged money‑laundering and tax‑fraud activities linked to that arrangement.
The investigation centers on a financing deal that allowed Sanofi to shift profits out of France through interest payments routed via Luxembourg affiliates, thereby reducing taxable income. Authorities are examining whether the structure constituted a tax‑avoidance scheme that crossed into fraud, and whether the company complied with French and EU tax laws during the period in question.
Sanofi has responded by stating it is fully cooperating with investigators and maintains that it has complied with all applicable laws. The company’s spokesperson emphasized that the financing arrangement was common practice among multinational firms and that Sanofi has no history of tax evasion or fraud.
Financially, Sanofi remains a robust player in the pharmaceutical sector. Its trailing‑twelve‑month revenue stands at $50.16 billion, with an operating margin of 21.82 % and a net margin of 19.95 %. The company’s market capitalization is roughly $121 billion. While the investigation could lead to penalties, restatements, or additional regulatory scrutiny, the current financial health suggests that any immediate impact may be limited.
Following the raid, Sanofi’s shares were up 1.7 % in Tuesday trading, reflecting investor confidence in the company’s cooperation and its strong underlying business fundamentals. The modest upside indicates that markets view the investigation as a potential headwind rather than a decisive threat to the company’s valuation.
The raid underscores significant legal and reputational risks for Sanofi. Potential penalties, restatements, or further regulatory action could materialize, and investors should monitor developments closely. However, the company’s solid financial position and proactive communication suggest that any adverse effects may be contained in the short term.
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