A Biotech Giant Poised for a Comeback
Regeneron Pharmaceuticals (NASDAQ: REGN) has had a rollercoaster ride in 2024, with its shares experiencing a significant decline in recent months. Despite this, many Wall Street analysts believe the correction is overdone and predict a potential 50% surge in the company’s stock price over the next year.
Key Growth Drivers
Regeneron’s success has largely been driven by two main products: Dupixent, an eczema treatment developed in partnership with Sanofi, and Eylea, a medicine for wet age-related macular degeneration comarketed with Bayer. While Eylea has faced stiff competition from Roche’s Vabysmo, Regeneron has developed a high-dose formulation to counter this challenge.
Challenges Ahead
However, Regeneron is now facing biosimilar competition for the original Eylea, with Amgen recently winning a ruling to launch its biosimilar version, Pavblu. This could lead to a decline in Eylea-related sales and revenue.
Strong Financial Results
Despite these challenges, Regeneron reported strong financial results in the third quarter, with revenue increasing by 11% year over year to $3.72 billion. Combined U.S. sales of Eylea and Eylea HD came in at $1.54 billion, a 3% increase from the previous year.
Dupixent: A Shining Star
Regeneron’s other growth driver, Dupixent, is performing well, with total worldwide revenue increasing by 23% year over year to $3.82 billion. The medicine recently received FDA approval for treating COPD, an indication that could add several billion dollars in annual sales.
Libtayo and Pipeline Developments
Regeneron’s lineup also features Libtayo, a cancer medicine developed in partnership with Sanofi, which reported sales of $289 million in the third quarter, a 24% increase from the previous year. The company has a deep pipeline and expects several key data readouts in 2025, including itepekimab, a potential medicine for COPD in former smokers.
The Verdict
While Regeneron faces challenges ahead, its strong lineup of products and pipeline developments make it an attractive investment opportunity for those willing to hold onto its shares for the long term. With a potential win in its patent infringement case against Amgen, Regeneron could meet the Street’s average price target. However, uncertainty surrounding the case’s outcome makes it difficult to predict a 50% surge in the next 12 months.
Leave a Reply