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Tarrytown, New York-based Regeneron Pharmaceuticals, Inc. (REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases. Valued at $73.8 billion by market cap, the company's portfolio boasts nine marketed drugs - Eylea, Dupixent, Praluent, Kevzara, Libtayo, Evkeeza, Inmazeb Arcalyst and Zaltrap.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and REGN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the biotechnology industry. REGN has a strong product portfolio with marketed products like Eylea and Dupixent. The company's innovative pipeline and successful commercialization of products drive its financial performance. Strategic collaborations with Sanofi and Bayer enhance research capabilities. Regeneron's VelocImmune technology keeps it at the forefront of biotech innovation, generating revenue through shared profits and royalties.
Despite its notable strength, REGN slipped 43.3% from its 52-week high of $1211.20, achieved on Aug. 27, 2024. Over the past three months, REGN stock declined 10.5%, underperforming the Dow Jones Industrials Average’s ($DOWI)3.9% losses during the same time frame.
In the longer term, shares of REGN dipped 3.5% on a YTD basis and declined 28.8% over the past 52 weeks, underperforming DOWI’s YTD gains of 1.1% and 11.5% returns over the last year.
To confirm the bearish trend, REGN has been trading below its 50-day moving average since September 2024, with slight fluctuations. The stock is trading below its 200-day moving average since October, 2024.
REGN's stock performance has been lacking due to a projected sales growth of only 2.1% for the next year, indicating a slowdown in demand compared to previous years. In addition, rising costs have outpaced revenue growth over the last five years. Furthermore, diminishing returns on capital indicate increasing competition in the market, which is impacting the company's profitability.
On Feb. 4, REGN shares closed up more than 4% after reporting its Q4 results. Its adjusted EPS of $12.07 beat Wall Street expectations of $11.62. The company’s revenue was $3.8 billion, meeting Wall Street forecasts.
In the competitive arena of biotechnology, Incyte Corporation (INCY) has taken the lead over REGN, showing resilience with a 1.1% gain on a YTD basis and 18.5% uptick over the past 52 weeks.
Wall Street analysts are bullish on REGN’s prospects. The stock has a consensus “Strong Buy” rating from the 26 analysts covering it, and the mean price target of $962.68 suggests a potential upside of 40.1% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
