Regeneron Pharmaceuticals REGN is a biotech company with a bright outlook. Already a big player in the field, they became a household name last month when their COVID-19 antibody cocktail was administered as one of a battery of drugs to treat President Donald Trump after his coronavirus diagnosis.
Since then, the company has announced that the FDA is reviewing their REGN-COV2 antibody cocktail for emergency authorization. While Regeneron’s CEO, Leonard Schleifer, acknowledged that the company couldn’t promise a timeline for the authorization, he also announced that the company plans to have 80,000 doses ready by December 1. Plans to have 300,000 doses prepared by February of 2021 are also underway, in keeping with the federal government’s agreement from this past June to purchase 300,000 doses for $450 million if the drug proves effective.
The company received a boost again last week after their Q3 earnings report (ending Sept. 30) was released, beating expectations across the board. Their stock jumped over $30 in a matter of hours – though this is still a blip compared to their $588.81 price tag.
The good news started with Regeneron’s 32% year-over-year increase in sales, bringing Q3 numbers up to $2.29 billion. Their biggest moneymaker continues to be Eylea, an eye disease treatment that netted $1.32 billion in the last quarter alone. Regeneron also noted that Dupixent, an eczema and asthma medication, was up almost 70% for the quarter, bringing sales to $1.07 billion.
The company’s Q3 report also reflected an increase in their 2020 research and development expenses, due at least in part to research around the coronavirus; their expectations raised from $2.6-$2.73 billion to $2.75-$2.82 billion for the year. They also confirmed that R&D funding would likely continue to be high through the first few months of 2021.
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What Does this Mean for Regeneron’s Stock Prices?
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Regeneron Pharmaceuticals (REGN) By the Numbers
Regeneron Pharmaceuticals ticked up 0.28% on Thursday on volume of 935,000 trades, ending the day at $588.81 per share. This is a small increase over the 10-day price average of $569.62, though barely above their 30-day average of $581.50. Overall, Regeneron’s stock is up over 57.7% in 2020.
It’s not just Regeneron’s stock prices that are climbing, however. The company has seen good news more or less across the board in the last fiscal year, thanks to a barrage of clinical studies, new treatments, and arrangements with other corporations.
For instance, their revenue is up almost 17.6% in the last year, with 57.4% growth reported over the last three fiscal years. This brings their total revenue from $5.87 billion to over $7.86 billion in a relatively short time span.
Furthermore, their operating income has seen a 39% increase over the last fiscal year, compared to 50% growth in the last three. This bumps their operating income from $2 billion to nearly $2.25 billion.
This increase in revenue is accompanied by Regeneron’s rising EPS, as well – a whopping 164% growth over the last three fiscal years from $10.34 to $18.46 per share. Their ROE is the metric to decline in the last year from 22.6% to 21.3%.
Overall, Regeneron is well-positioned to continue seeing positive numbers in the near future. They’re currently trading with a forward 12-month P/E ratio of 17.53, while their revenue is expected to grow by 14.7% over the next year.
So, What’s the Verdict?
If the numbers are anything to go by – and we believe they are – Regeneron Pharmaceuticals has a bright future ahead of them. Our AI agrees, as our deep learning algorithm rated the company C’s in Technicals and Low Momentum Volatility, B in Quality Value, and an A in Growth.
Thus, Regeneron Pharmaceuticals regenerates its Top Buy rating from this time last month for the month of November.
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