Regeneron Pharmaceuticals is going to repurchase $5B of its shares from Sanofi without changing their over-a-decade-long partnership as the race for coronavirus vaccine development intensifies.
Recently, the French-based multinational pharmaceutical company Sanofi SA (NASDAQ: SNY) was heavily criticized by the French government after saying that the U.S. has the right to get the vaccine first should the drug prove effective since it has contributed the most in the development of its vaccine project. Now the U.S. drugmaker Regeneron Pharmaceuticals Inc (NASDAQ: REGN) said that it would repurchase around $5 billion worth of shares from Sanofi. A general feeling is that the U.S government is eyeing to be the first to receive its vaccine.
The U.S. government seems to be moving fast underground to control some of the multinational pharmaceutical companies to secure enough vaccines for its citizens. This is after health officials unanimously agree that no one single company can deliver its vaccine to the global population in a short period as needed.
It is a supremacy battle that might leave a huge chunk of the global population left out of the coronavirus vaccine doses in time. As a result, more damage caused by the ongoing coronavirus in undeveloped countries might be more severe than the developed before the human immune systems get acquainted with the coronavirus like any other common flu.
News publication Reuters reported that the U.S. drugmaker pharmaceutical company Regeneron is to repurchase around $5 billion worth of shares from French-based Sanofi. However, Regeneron claims that according to the agreement of the repurchase, the new deal will happen without altering their over decade long partnership.
It was confirmed by Sanofi, which said that it would continue to own the 400,000 Regeneron shares in order to support their partnership. Sanofi has been controlling total holding shares of about 20.6% in Regeneron.
“Sanofi remains committed to continuing our collaboration with Regeneron which remains an integral part of our overall strategy,” said Sanofi CEO Paul Hudson. He further added that the sale would greatly aid the company in executing its strategy to drive innovations and more growth.
In February, when the coronavirus was announced as a global pandemic, the U.S. Biomedical Advanced Research and Development Authority gave Sanofi $30 million to fund its quest for a coronavirus vaccine.
The matter gets more controversial after the French Socialist Party said the French government has given Sanofi around $162 million in recent years.
The battle contradicts the open letter that was signed by 140 world leaders earlier this month that reads:
“Governments and international partners must unite around a global guarantee which ensures that, when a safe and effective vaccine is developed, it is produced rapidly at scale and made available for all people, in all countries, free of charge.”
For more coronavirus updates please follow this link.
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