Sanofi Plans to Sell Stake in Regeneron Pharmaceuticals for $11.7 Bn
Sanofi has announced its intent to sell its equity investment in Regeneron Pharmaceuticals, a Tarrytown, New York-based biopharmaceutical company, through a registered public offering and related share repurchase by Regeneron to provide Sanofi with approximately $11.7-billion. Sanofi currently holds approximately 23.2 million shares of Regeneron’s common stock, representing approximately 20.6% ownership.
Sanofi is selling 11.8 million Regeneron shares through a registered offering at $515 per share. Regeneron will repurchase 9.8 million shares for $5 billion while underwriters have the option to purchase another 1.2 million Regeneron shares. In sum, Sanofi would gain approximately $11.7 billion.
Regeneron 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 approximately 400,000 shares of Regeneron’s common stock, which Sanofi is retaining in support of its ongoing collaboration with Regeneron. Sanofi says that registered offering and share repurchase will have no impact on the ongoing collaboration between it and Regeneron. The transaction has been approved by Sanofi’s and Regeneron’s Boards of Directors.
The companies have had a clinical and commercial collaboration dating back to 2003 that has resulted in five approved treatments to date with additional candidates currently in clinical development. Sanofi originally purchased a shareholding in Regeneron in 2004.