Sanofi Sells Its Stake in US Coronavirus Drugmaker Regeneron

Sanofi S.A. (Paris, France) has agreed to sell 11.8 million shares of Regeneron Pharmaceuticals, Inc. (Tarrytown, NY, USA) common stock through a registered offering at a price of USD 515 per share.

Regeneron will repurchase 9.8 million shares or USD 5 billion in common stock from Sanofi at the offering price less the underwriting discount. Sanofi expects to use the net proceeds of the offering and the repurchase to further execute on its strategy to drive innovation and growth. In connection with the offering, the underwriters have been granted an option to purchase up to 1.2 million additional Regeneron shares at the price payable by the underwriters in the offering, exercisable within the next 30 days. If the option is fully exercised, the offering and repurchase will together result in gross proceeds to Sanofi of USD 11.7 billion and the sale of Sanofi’s entire holding in Regeneron, excluding 400,000 Regeneron shares that Sanofi is retaining. The registered offering and share repurchase will have no impact on the ongoing collaboration between Sanofi and Regeneron.

“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, Chief Executive Officer, Sanofi. “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.”