8. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
5-Year Net Income Growth: 15.87%
5-Year Revenue Growth: 15.57%
TTM Net Income: $4.32 Billion
Number of Hedge Fund Holders: 57
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is another biotechnology company that ranks 8th on our list of high-growth NASDAQ stocks that are profitable in 2024. It engages in the development of new drug treatments aimed at treating various diseases, including cancer, eye diseases, and allergic conditions.
Medicines including EYLEA, Dupixent, Librato, and Praluent are some leading first treatment medicines for the company driving considerable revenue. Moreover, the drug development methods employed by Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) set it apart from its competitors. It uses AI to speed up the process of drug discovery and development. Its Regeneron Genetics Center is an AI-driven genetic research center that has one of the world’s largest genetic research databases which is used in developing new treatments.
Despite these strategic edges, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) recently came under some competitive pressure when one of its competitors developed a biosimilar medicine to EYLEA, which treats an eye disease called wet age-related macular degeneration (AMD). The company has filed a lawsuit against the FDA approval for this biosimilar medicine but the trial is yet to begin. This has scared away some investors.
However, here’s what you might not know about Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). EYLEA still has an edge over this competitor as the high-dose version of the medicine allows patients to treat the disease in less doses thereby becoming one of the key selling points for the company. Moreover, in the second quarter sales of EYLEA and EYLEA HD came in with a 2% increase year-over-year to $1.53 billion. The overall revenue of the company was $3.55 billion, up 12% during the same time.
Another point of relief for investors is that EYLEA is not the main growth driver for the company. Eczema treatment Dupixent is one of the key drivers of growth for the company and its sales grew 27% year over year to $3.56 billion indicating that even if the lawsuits goes south the growth engines will continue firing. Moreover, the company has some 50 programs in the pipeline which advocate for continued growth of the company.
Bronte Capital Amalthea Fund made the following comment about Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2023 investor letter:
“In the last quarterly letter, we discussed the problems in our long book. These were:
a) companies that sell technical products to improve the conversion of grain into meat (such as animal genetics and feed additives), and
b) Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), which had received a “Complete Response Letter” (an FDA rejection) for their new longer-lasting wet age-related macular degeneration drug.
The first of these problems has persisted. Grain prices remain high relative to meat prices and the stocks in question have followed their quality European peers down. The two losers in this sector are Genus and DSM-Firmenich…” (Click here to read the full text)
