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Sanofi sells Regeneron stocks

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Sanofi creates a chain reaction among pharma companies.

Yesterday, the pharmaceutics giant Sanofi announced that it plans to sell its shares in Regeneron Pharmaceuticals.

Sanofi bought the stocks in 2004, and it owns approximately 23.2 million shares, which means 20.6% of Regeneron. The latter itself wants to repurchase its shares worth $5 billion. The overall value is $13 billion. The decision came shortly after Regeneron stocks reached an increase of 57% in the past six months. 

Goldman Sachs and Bank of America will be the underwriters of the transaction, which will comprise of $3.5 billion in cash and $1.5 billion from Goldman itself. 

If Sanofi manages to sell its stake in the company, it will be the most significant public offering in the health-care industry ever made. The money Sanofi will get from the transaction will go to "further our ability to execute on our strategy to drive innovation and growth" as the company wants to expand its research in oncology.  

According to the companies, their partnership won’t stop as they have drugs in development. 

The move made by Sanofi backs-up the rumor that it might repurchase a 9.4% stake in L’Oreal SA. By extension, it means that L’Oreal could buy back the 23% stake that Nestle owns from it.

Regeneron stock price lost 5% in pre-market trading. Sanofi dropped by 1%.

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Sources: reuters.com, yahoo.com, seekingalpha.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.