By Colin Kellaher

 

Regeneron Pharmaceuticals Inc. shares fell more than 5% on Tuesday after long-time partner Sanofi SA said it would exit its nearly 21% stake in the biotechnology company.

Sanofi, which currently owns about 23.2 million Regeneron shares, said it plans to sell the majority of its holdings in a public offering, while Regeneron will buy back $5 billion in stock from the French drug maker.

The Tarrytown, N.Y., company said it will fund the repurchase with $3.5 billion of cash on hand and $1.5 billion of fully-committed bridge financing from Goldman Sachs Bank USA.

Shares of Regeneron, which formed its collaboration with Sanofi in 2007, were recently down 5.1% to $540.65.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

May 26, 2020 10:13 ET (14:13 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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