Sanofi expands its partnership with Regeneron in an $8 billion deal
Article excerpt
(Update: analyst comments, stock price) Sanofi shares rose on Thursday, as the pharmaceutical group announced the expansion of its partnership with American Regeneron in the field of immunology. Around 10:30 AM, Sanofi stock gained 0.7%, to 73.18 euros, while the CAC 40 index fell 1.6%, weighed down by new tensions on interest rates. "The agreement is strategically coherent and represents a first concrete step in the new management's desire to quickly strengthen the pipeline [portfolio of products in development, editor's note]," commented Invest Securities in a note sent to its clients on Thursday. Appointed at the end of April, the group's new CEO, Belén Garijo, is tasked with restructuring the R&D portfolio before the patent expiration of the group's flagship drug, Dupixent, starting in 2031. Thursday's announcement is positive "because beyond the strategic alliance, it demonstrates that the new management is acting quickly to renew Sanofi's project portfolio and preserve the long-term value of its immunology franchise beyond the Dupixent patent expiration," Oddo BHF stated. "The expansion of the alliance with Regeneron is the first step to improve Sanofi's long-term prospects and should be seen as a clear sign of progress under the leadership of [Belén Garijo]," added Jefferies. Now that an agreement has been reached with Regeneron, investors will likely focus on...
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Under this agreement, Regeneron will receive 1 billion dollars upon signing, as well as up to an additional 7 billion dollars in future milestone payments.
