Insider trading occurs when a person trades in a company’s securities while aware of material nonpublic information about that company. The most typical examples of insider trading are selling shares before bad news causes the share price to drop, or buying shares before good news causes the shares to go up.
Sanofi considers an insider any individual possessing significant confidential, price-sensitive information regarding Sanofi, its affiliates and listed partners. Consequently, this insider must abstain from trading shares of the relevant company, from selling performance shares, or from exercising options.
Insider trading can occur when shares are bought or sold before the announcement of news that could have a positive or negative effect on the market price of shares in Sanofi or in a current or potential partner, and the purchase or sale of these shares is based on inside information in relation to, among other factors:
- financial results
- proposed acquisitions or divestments
- important clinical trial results
- issuing marketing approval for a new product
- losing or gaining a major contract
- ongoing litigation.
The rules on insider trading apply not only to Sanofi shares, but also to the shares of any third party with which the company has a relationship.