Regeneron: Sanofi Plans to Increase Stake to Over $500 Million of Stock
02/11/2013| 10:44am US/Eastern
By Melodie Warner
Regeneron Pharmaceuticals Inc. (>> Regeneron Pharmaceuticals Inc) said Sanofi S.A. (SNY, SAN.FR) notified the biopharmaceutical company of its intent to boost its investment in the company and push its ownership of voting securities to more than $500 million.
Sanofi currently holds about 17% of Regeneron's shares outstanding, according to FactSet Research.
Regeneron said a December 2007 investor agreement bonds the French drug maker to certain standstill provisions, including an agreement not to acquire more than 30% of Regeneron's Class A stock and common stock outstanding.
Regeneron said these standstill provisions are in effect until the fifth anniversary of the expiration of a license and collaboration agreement between the companies.
Sanofi and Regeneron have worked together on experimental cancer drug Zaltrap, among other things.
Shares of Regeneron rose 5.6% to $175.13 in recent trading and have climbed 24% in the past three months.
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