We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sanofi to Sell Stake in Regeneron, Existing Deal Unchanged
Read MoreHide Full Article
Sanofi (SNY - Free Report) announced its intent to sell most of its equity investment in its collaboration partner, Regeneron Pharmaceuticals (REGN - Free Report) , worth almost $13 billion as of Regeneron’s closing price on Friday.
Sanofi currently holds approximately 23.2 million shares of Regeneron common stock, which represents approximately 20.6% ownership.
Sanofi plans to sell a portion of its stake in Regeneron through a registered public offering. Regeneron will repurchase its common stock worth $5 billion from Sanofi following the successful completion of the public offer. Following the completion of public offering and share repurchase, Sanofi will continue to hold approximately 400,000 shares of Regeneron.
Please note that there is a lock-in period related to the collaboration agreement with Regeneron that is set to expire at the end of 2020. Sanofi will be able to raise funds following the expiration of the lock-in period.
The companies together have developed five important medicines including Kevzara (sarilumab) and Praluent (alirocumab).
We note that Sanofi had hinted at monetizing its stake in Regeneron in December 2019 while announcing a new strategic framework.
Shares of Sanofi have declined 5.8% so far this year compared with the industry’s decrease of 2.6%.
Under the new framework, the company had back then announced that it is planning to discontinue all its research activities in diabetes and cardiovascular area and focus on high-growth franchises included under its Specialty Care global business units.
The company may invest the proceeds from the stake sale to acquire or add oncology candidates to its pipeline, which is a lucrative avenue.
Sanofi and Regeneron had announced their intention to restructure their antibody collaboration into a royalty-based agreement for Kevzara and Praluent last year. However, the terms of the agreement related to blockbuster drug, Dupixent (also included in the antibody collaboration) will remain unchanged.
Meanwhile, the companies are evaluating Kevzara as a treatment for severe COVID-19 patients.
Lilly’s earnings estimates increased from $6.77 to $6.81 for 2020 and from $7.93 to $8.02 for 2021 over the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters, the average beat being 8.24%. Share price of the company has increased 16.6% so far this year.
Bristol-Myers’ earnings estimates increased from $6.10 to $6.14 for 2020 and from $7.32 to $7.35 for 2021 over the past 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters, the average beat being 7.94%. Share price of the company has increased 19.5% so far this year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Sanofi to Sell Stake in Regeneron, Existing Deal Unchanged
Sanofi (SNY - Free Report) announced its intent to sell most of its equity investment in its collaboration partner, Regeneron Pharmaceuticals (REGN - Free Report) , worth almost $13 billion as of Regeneron’s closing price on Friday.
Sanofi currently holds approximately 23.2 million shares of Regeneron common stock, which represents approximately 20.6% ownership.
Sanofi plans to sell a portion of its stake in Regeneron through a registered public offering. Regeneron will repurchase its common stock worth $5 billion from Sanofi following the successful completion of the public offer. Following the completion of public offering and share repurchase, Sanofi will continue to hold approximately 400,000 shares of Regeneron.
Please note that there is a lock-in period related to the collaboration agreement with Regeneron that is set to expire at the end of 2020. Sanofi will be able to raise funds following the expiration of the lock-in period.
The companies together have developed five important medicines including Kevzara (sarilumab) and Praluent (alirocumab).
We note that Sanofi had hinted at monetizing its stake in Regeneron in December 2019 while announcing a new strategic framework.
Shares of Sanofi have declined 5.8% so far this year compared with the industry’s decrease of 2.6%.
Under the new framework, the company had back then announced that it is planning to discontinue all its research activities in diabetes and cardiovascular area and focus on high-growth franchises included under its Specialty Care global business units.
The company may invest the proceeds from the stake sale to acquire or add oncology candidates to its pipeline, which is a lucrative avenue.
Sanofi and Regeneron had announced their intention to restructure their antibody collaboration into a royalty-based agreement for Kevzara and Praluent last year. However, the terms of the agreement related to blockbuster drug, Dupixent (also included in the antibody collaboration) will remain unchanged.
Meanwhile, the companies are evaluating Kevzara as a treatment for severe COVID-19 patients.
Sanofi Price
Sanofi price | Sanofi Quote
Zacks Rank & Stocks to Consider
Sanofi currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked large-cap pharma stocks are Eli Lilly and Company (LLY - Free Report) and Bristol-Myers Squibb Company (BMY - Free Report) . While Lilly sports a Zacks Rank #1 (Strong Buy), Bristol-Myers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lilly’s earnings estimates increased from $6.77 to $6.81 for 2020 and from $7.93 to $8.02 for 2021 over the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters, the average beat being 8.24%. Share price of the company has increased 16.6% so far this year.
Bristol-Myers’ earnings estimates increased from $6.10 to $6.14 for 2020 and from $7.32 to $7.35 for 2021 over the past 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters, the average beat being 7.94%. Share price of the company has increased 19.5% so far this year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>