Sanofi ups stake in Regeneron
pharmafile | February 13, 2013 | News story | Sales and Marketing | AMD, Regeneron, Sanofi, Zaltrap
Sanofi is increasing its stake in Regeneron Pharmaceuticals by buying shares on the open market and from existing shareholders.
The French manufacturer currently owns 17% of Regeneron – making it the firm’s largest shareholder – but it cannot increase its holding to more than 30% under so-called ‘standstill’ provisions from a 2007 agreement.
Sanofi has enjoyed success with Regeneron recently, the companies celebrating EU and US approval of Zaltrap, the drug they co-market for metastatic colorectal cancer (mCRC).
Even though the drug is late to the market and has failed in studies for prostate, lung and pancreatic cancer, it is still predicted to make peak annual sales of up to $400 million.
The two firms have also pledged to get up to 30 more antibodies into clinical development by 2017, with Sanofi providing $160 million in annual research funding until then.
Since 2007 Sanofi has shelled out $1.1 billion in funding for Regeneron’s antibody R&D activities overall.
There are various reasons why Sanofi may want to increase its shareholding now: while speculation has inevitably fallen on a possible takeover, it may also be a sign of confidence in products the companies have in their pipeline.
The first is SAR236553, a subcutaneously administered, fully-human antibody being investigated in Phase III for lowering low-density lipoprotein (LDL-C or ‘bad’) cholesterol.
Meanwhile SAR231893 is an anti IL-4Rα monoclonal antibody which will enter Phase IIb this year in asthma and atopic dermatitis.
Regeneron also collaborates with Bayer HealthCare on wet AMD drug Eylea and observers have suggested that one possible motive behind Sanofi’s move is to make it more difficult for a rival to acquire the biopharma firm.
Regeneron does not give the impression of idly waiting for a takeover. It confirmed in November that it will invest almost $70m to expand its manufacturing in New York, and last month urged shareholders to reject an unsolicited ‘mini-tender’ offer by TRC Capital Corporation to buy up to one million shares.
Sanofi itself has grand ambitions, making no secret of its bold plans for expansion in China, for example, although it has forecast modest growth between 2012 and 2015, expecting a compound growth rate of 5% for the period.
Adam Hill
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