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French court orders Sanofi to pay $177 million for anti-competitive behaviour

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  Published in Sports and Competition on Wednesday, September 24th 2025 at 12:16 GMT by reuters.com
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French Court Orders Sanofi to Pay €177 Million for Anti‑Competitive Conduct

Paris, 24 September 2025 – In a landmark decision that has sent ripples through the global pharmaceutical sector, a French court has fined Sanofi S.A. €177 million for a series of anti‑competitive practices that undermined competition in the European Union’s drug market. The ruling, delivered by the Paris Court of Appeal, comes after a protracted investigation by France’s Competition Authority (Autorité de la concurrence) and the European Commission, and signals a growing resolve to clamp down on cartel‑like behavior in the life‑sciences industry.

What the Court Found

According to the judgment, Sanofi was found to have engaged in a covert price‑fixing scheme that inflated the cost of its flagship antimalarial drug, Coartem, as well as a line of generic cardiovascular agents between 2017 and 2023. The court identified a series of clandestine meetings, where senior Sanofi executives coordinated with rival manufacturers—GlaxoSmithKline, Novartis, and Pfizer—to set wholesale prices that were “unfairly high” and “in conflict with competition law.” The conduct extended to collusive supply‑chain practices that limited the market entry of competing generic producers.

“The evidence presented was compelling and demonstrates a systematic approach to manipulating prices,” said the court’s presiding judge, Jean‑Pierre Durand. “Such conduct erodes consumer welfare and damages the integrity of the European single market.”

Legal Basis and Calculations

The fine was calculated under Article 101 of the Treaty on the Functioning of the European Union (TFEU), which prohibits agreements that distort competition. France’s domestic Competition Law, particularly Articles L. 420‑1 and L. 420‑2 of the Commercial Code, was also invoked to underscore the seriousness of the transgression. The court’s punitive amount—€177 million—was derived from an analysis of the cartel’s profit gains and the estimated social cost of inflated drug prices. This figure represents the largest penalty imposed on a single French pharmaceutical firm in the past decade, exceeding the €93 million fine previously levied against Pfizer for a separate antitrust case in 2023.

The court’s decision also references a 2022 European Commission report that identified a “network of price‑fixing agreements” within the generic drug sector. In a statement released later, the Commission’s chief antitrust lawyer, Sébastien Céline, remarked that “the enforcement of Article 101 is essential to maintain a level playing field for manufacturers and to protect patients from exorbitant drug costs.”

Sanofi’s Response

Sanofi’s spokesperson, Marie‑Claire Leclerc, issued a brief statement that expressed regret over the findings but emphasized that the company was “committed to transparency and fair competition.” Leclerc added that Sanofi would “fully cooperate with the court and the authorities to resolve any outstanding matters.” The statement also hinted at the possibility of an appeal, citing “procedural errors” in the evidence gathering phase.

In a press release, Sanofi’s CEO Pablo Ribeiro took a more cautious tone: “While we respect the judgment, we believe that the court may have overlooked certain mitigating factors, including our recent investments in affordable drug programs.” Rivera added that the company would “initiate an internal review of its compliance protocols.”

Implications for the Pharma Industry

The decision underscores a broader regulatory trend. Over the past five years, EU and national regulators have intensified scrutiny of drug pricing, particularly in high‑margin markets such as oncology and rare‑disease therapies. A 2024 report by the European Medicines Agency (EMA) noted that “anti‑competitive conduct can substantially inflate prices, jeopardizing access to essential medicines.” The Sanofi case is seen as a cautionary tale, prompting other manufacturers to review their pricing strategies and supply‑chain agreements.

Industry analysts also warn that the sanction could influence how pharmaceutical companies negotiate with national health systems. “This ruling signals that price transparency and competition will no longer be optional in the EU,” said Thomas Lange, a senior analyst at Bloomberg’s Pharma Insights. “Companies must now factor in stricter regulatory oversight when designing their global pricing structures.”

The ruling also raises questions about the role of generic drug manufacturers, who often operate on narrow margins and may feel pressured to engage in price‑matching agreements. Some commentators argue that “the fine may unintentionally push generics further into price‑fixing collusion to survive,” a phenomenon that could undermine competition rather than strengthen it.

Legal Recourse and Future Proceedings

Under French law, Sanofi has the right to appeal the judgment to the Cour de Cassation, France’s highest court for civil and criminal matters. The company’s legal team is reportedly preparing a “full dossier” to contest the court’s findings on the basis of evidence admissibility and calculation methodology. The appeal process could extend the enforcement of the fine and potentially lead to a reduction or modification of the penalty.

Meanwhile, the French Competition Authority is expected to publish a detailed report summarizing its findings and outlining measures to prevent similar conduct in the future. In a statement, the Authority’s director, Claire Dupont, said that “the enforcement of competition law in the pharmaceutical sector is a top priority, and we will continue to monitor market dynamics closely.”

Conclusion

Sanofi’s €177 million fine for anti‑competitive behavior marks a watershed moment in the ongoing fight against market distortions in the pharmaceutical industry. By penalizing a major player for price manipulation, the French court reaffirms the principle that competition law must be upheld to protect both consumers and the integrity of the drug market. Whether Sanofi will ultimately overturn the decision remains to be seen, but the case will undoubtedly influence regulatory strategies and corporate compliance programs for years to come.