(By Balachander) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) said its partner Sanofi SA (NYSE: SNY) plans to raise its stake in the drug maker by acquiring shares in open market.
REGN stock, which has risen 24 percent in the last 3 months, gained 2.79 percent to trade at $170.50 on Monday. SNY shares jumped 3.42 percent to trade at $48.11.
France-based Sanofi, which currently owns roughly 16 million shares or 17 percent of Regeneron, plans to own in excess of $500 million in voting securities.
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Under a December 2007 investor agreement, Sanofi is bound by certain "standstill" provisions including an agreement not to acquire more than 30 percent of Regeneron's class A stock and common stock.
These standstill provisions are effective until the fifth anniversary of the expiration or earlier termination of a license and collaboration agreement between the companies, the Tarrytown, New York-based Regeneron said.
Sanofi and Regeneron have both developed cancer drug Zaltrap, which has been approved by the U.S. Food and Drug Administration (FDA) and European regulators as a treatment for colorectal cancer. The companies have also agreed to colloborate on other drugs.
REGN shares have been trading in the 52-week range of $94.22 to $188.95.