NEW YORK (TheStreet) -- Shares of Regeneron Pharmaceuticals, Inc. (REGN) are surging this afternoon, up 6.64 to $301.23, after Sanofi (SNY) increased its stake in the biopharmaceutical firm although it has said it doesn't plan to buy the company, according to the Wall Street Journal.
Sanofi now holds about 22.5% of Regeneron's shares outstanding, up from 20.5%, according to a regulatory filing released today.
Sanofi said it plans to acquire the additional shares on the market, in private transactions or through derivatives, the Journal said.
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Shares of Sanofi are up 0.43% to $53.40.
TheStreet Ratings team rates REGENERON PHARMACEUTICALS as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate REGENERON PHARMACEUTICALS (REGN) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."