Talk about an awesome return on an investment.
After buying Into Regeneron Pharmaceuticals (REGN) - Get Report for $20 a share back in 2003, Sanofi (SNY) - Get Report is cashing in on its investment in the ‘Covid-19 Cocktail’ maker to the tune of more than $13 billion as Regeneron continues its search for a vaccine.
The Paris-based drugmaker on Tuesday said it is selling its stake in Regeneron, whose stock price has ballooned in value in recent months as investors have bet that its efforts to produce a vaccine to treat Covid-19 will prove successful.
Sanofi said it will sell its stake in Tarrytown, N.Y.-based Regeneron, worth about $13 billion based on its current stock price, to focus its efforts on cancer-fighting treatments. For its part, Regeneron has agreed to repurchase $5 billion of its stock from Sanofi, the companies said.
Regeneron said that Sanofi also plans to sell approximately 12.8 million shares, a holding worth more than $7 billion based on Friday’s closing price. That will mark the largest public equity offering in the health-care industry on record, according to Bloomberg.
Sanofi’s decision to sell comes after Regeneron’s stock surged 57% in the past six months. The French drugmaker holds about 23.2 million Regeneron shares, or 20.6% of the U.S. pharmaceutical company, according to Bloomberg.
When Sanofi first purchased shares of Regeneron 2003, the stock traded below $20, compared with a closing price of $569.91 last Friday.
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