Regeneron Pharmaceuticals, Inc.
) recently announced that it has received a notification under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR
). As per the notification, Sanofi seeks to acquire Regeneron
shares through open market and direct shareholder purchases.
Sanofi is looking to increase its ownership in Regeneron above
the HSR Act notification threshold of $500 million.
NOVO-NORDISK AS (NVO): Free Stock Analysis
REGENERON PHARM (REGN): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
VALEANT PHARMA (VRX): Free Stock Analysis
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Investors have reacted positively to the news. Both Regeneron and
Sanofi stocks were up 2.7% and 3.2%, respectively, on the news.
Sanofi and Regeneron have a long standing agreement as per which
Sanofi will not acquire more than 30% of Regeneron's class A
stock and common stock.
Sanofi and Regeneron collaborate on oncology therapy, Zaltrap
(aflibercept). Last week, Sanofi and Regeneron received
encouraging news with the European Commission (EC) approving
Zaltrap. The EC cleared Zaltrap as a combination therapy (with
5-fluorouracil, leucovorin, irinotecan - FOLFIRI) for treating
patients suffering from metastatic colorectal cancer who are
either resistant or whose disease has progressed following
treatment with an oxaliplatin-containing regimen.
We note that Zaltrap is already approved in the US for the above
indication. The US Food and Drug Administration (FDA) approved
Zaltrap for the indication in August last year. Approval of
Zaltrap in the EU has boosted the drug's sales potential.
Sanofi and Regeneron both carry a Zacks Rank #2 (Buy).
) are examples of pharma stocks which are more favorably placed.
Both companies carry a Zacks Rank #1 (Strong Buy).