Sanofi plans to boost stake in Regeneron
Sanofi has announced its plans to buy more shares in US biotech, Regeneron Pharmaceuticals. The French drugmaker currently controls approximately 17% of Regeneron.
Due to a long-term partnership co-developing potential blockbuster drugs for high cholesterol levels and rheumatoid arthritis, Sanofi has a right to raise its stake in Regeneron to as much as 30%. But a 2007 agreement means Sanofi can’t purchase more than this amount.
Under terms of the partnership, Sanofi and Regeneron agreed to split any US profits from the medicines co-developed equally. Last year, the US FDA approved Zaltrap, co-developed by this partnership, for metastatic colorectal cancer.
However, analysts are saying that this does not necessarily mean that an acquisition is on the cards.
Sanofi boosting stake in Regeneron (Reuters)
Regeneron Says Sanofi Plans to Lift Stake (Wall Street Journal)
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