Drugmaker Sanofi to raise over $11 billion via sale of Regeneron shares

© Reuters. FILE PHOTO: Sanofi logo is seen in Paris

PARIS (Reuters) – Sanofi (PA:) will raise over $11 billion (8.93 billion pounds) from the sale of 21.6 million shares in its U.S. partner Regeneron (O:), the French drugmaker said on Wednesday, adding it would use the proceeds for innovation and general growth.

Earlier this week, Regeneron had said it would repurchase about $5 billion of its shares directly from Sanofi, without altering their over-a-decade-long partnership.

Sanofi is selling the Regeneron shares at $515.00 per share – a discount of around 5.5% to Regeneron’s closing price of $545.21 on May 26, and raising gross proceeds of $11.1 billion.

Sanofi will continue to own approximately 400,000 shares of Regeneron’s common stock.

Sanofi could end up raising $11.7 billion, if the underwriters on the deal exercise their option to buy up a further 1.2 million Regeneron shares.

The collaboration between Sanofi and Regeneron dates back to 2003 and has resulted in five approved treatments to date – including eczema drug Dupixent – with additional candidates in clinical development.

Investment banks Bank of America (NYSE:) Securities, Goldman Sachs (NYSE:), Barclays (LON:), BNP Paribas (PA:), Citigroup (NYSE:), JP Morgan and Morgan Stanley (NYSE:) worked on Sanofi’s Regeneron stake sale.

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