Sanofi to Sell Regeneron Stake; Collaboration Unaffected
Sanofi announced its intention to sell its equity investment in Regeneron Pharmaceuticals through a public offering and related share repurchase. The company confirmed this will not impact their ongoing collaboration.
French pharmaceutical giant Sanofi has announced plans to sell its significant equity stake in U.S. biotechnology firm Regeneron Pharmaceuticals. The move involves a registered public offering of Regeneron shares and a concurrent share repurchase by Regeneron itself.
Sanofi currently holds approximately 20.6% of Regeneron's common stock, amounting to about 23.2 million shares. As part of the agreement, Regeneron has committed to repurchasing $5 billion worth of its stock from Sanofi, conditional on the public offering's completion. Should all options be exercised, Sanofi expects to retain approximately 400,000 shares.
The company stressed that the divestment will not alter the existing collaboration between Sanofi and Regeneron, which has been ongoing since 2003. This partnership has yielded five approved medicines and has several other drug candidates in clinical development. Sanofi CEO Paul Hudson stated that the collaboration remains a crucial part of Sanofi's overall strategy.
The divestment is intended to unlock capital for Sanofi to pursue its strategic objectives, focusing on innovation and growth. Sanofi indicated that the transaction aligns with Regeneron's goals and has received approval from the boards of directors of both companies. The offering will be managed by BofA Securities and Goldman Sachs.