Sanofi to Sell Stake in Regeneron Pharmaceuticals for Roughly $13B

French multinational pharmaceutical company Sanofi is selling a stake in Regeneron Pharmaceuticals Inc. valued at about $13 billion.

According to an announcement from both companies on Monday, Regeneron has agreed to repurchase $5 billion of its stock from Sanofi.

Regeneron has said that the French company also plans to sell approximately 12.8 million shares, a holding worth more than $7 billion based on Friday’s closing price.

“We believe the proceeds from this transaction will help further our ability to execute on our strategy to drive innovation and growth,” said Sanofi CEO Paul Hudson.

“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. The decision to divest our holdings is consistent with our efforts to enhance value creation for our shareholders,” Hudson also said.

Sanofi holds about 23.2 million shares of Regeneron’s stock, or 20.6% of the U.S. pharmaceutical company. Sanofi will continue to own about 400,000 shares. Regeneron said it will fund the share repurchase with $3.5 billion of cash and $1.5 billion of financing from Goldman Sachs Bank USA.

Bank of America Corp. and Goldman Sachs Group Inc. are the underwriters of the stake sale
This public equity offering will be the largest on record in the healthcare industry.

Both companies said that there will be no change to their ongoing partnerships.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.