Sanofi has revealed its intent to sell its equity investment in Regeneron through a registered public offering and related share repurchase by the firm.
The French drugmaker currently holds around 23.2 million shares of Regeneron’s common stock, representing approximately 20.6% ownership, which it originally purchased in 2004.
Regeneron has agreed to repurchase $5 billion of its stock from Sanofi conditional on completion of the proposed public offering.
If the offering and repurchase are completed and the underwriters fully exercise their option to purchase additional shares, Sanofi will continue to own around 400,000 shares of Regeneron’s common stock, which it is retaining in support of the ongoing collaboration.
“Sanofi and Regeneron’s collaboration has been one of the most productive in the industry, creating significant value for both companies but more importantly, resulting in five important medicines for patients. Sanofi remains committed to continuing our collaboration with Regeneron which remains an integral part of our overall strategy, and this decision was fully aligned with Regeneron,” said Paul Hudson, Sanofi’s chief executive.
“The decision to divest our holdings is consistent with our efforts to enhance value creation for our shareholders. We believe the proceeds from this transaction will help further our ability to execute on our strategy to drive innovation and growth,” he added, further explaining the move.
The transaction has been approved by Sanofi and Regeneron’s Boards of Directors.
By: Selina McKee
Source: Pharma Times
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