) jumped 7.41% to close the trading session on Jul 1 at $303.39 per
) decision to increase its stake in the former. Sanofi will hold
approximately 22.5% of Regeneron's shares outstanding going forward
as opposed to 20.5% earlier.
Sanofi is looking to buy the additional interest in the market or
privately, or by way of derivatives subject to regulatory framework
at an agreed-upon price. Sanofi and Regeneron have a long standing
agreement which stipulates that Sanofi will not acquire more than
30% of Regeneron's class A stock and common stock. Sanofi ruled out
an outright acquisition of Regeneron.
Sanofi's decision to boost its stake in Regeneron comes close on
the heels of the latter's highly successful eye drug Eylea
receiving a favorable opinion from the European Committee for
Medicinal Products for Human Use for an additional eye disorder
(diabetic macular edema).
Eylea is marketed for the neovascular form of age-related macular
degeneration and macular edema following central retinal vein
occlusion indications with approvals for additional indications
widely expected by year end. Regeneron has an agreement on Eylea
with the HealthCare unit of
Regeneron and Sanofi - No Strangers
Regeneron has an antibody development collaboration with the French
company. While releasing its first quarter results, in May 2014,
Regeneron stated that it is developing eight fully human monoclonal
antibodies with Sanofi.
The promising candidates being developed under the collaboration
include alirocumab, a proprotein convertase subtilisin/kexin type 9
(PCSK9) antibody, to lower low-density lipoprotein-cholesterol
levels (phase III), sarilumab - an antibody targeting the
interleukin-6 receptor (IL-6R) for rheumatoid arthritis (phase III)
and dupilumab - an IL4R antibody being developed for asthma, atopic
dermatitis and nasal polyposis (phase II). Furthermore, the
companies have an agreement on oncology drug, Zaltrap.
Regeneron carries a Zacks Rank #1 (Strong Buy). A healthcare stock
carrying the same rank as Regeneron is
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BAYER A G -ADR (BAYRY): Free Stock Analysis
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