2. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Average Analyst Upside: 33.32%
Number of Hedge Fund Holders: 62
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a leading biopharmaceutical company focused on discovering, developing, and commercializing therapies for a range of diseases, including cancer, eye disorders, and allergic conditions. Currently, the company is advancing around 40 clinical programs, with interim results from a Phase II lung cancer study and pivotal data for itepekimab in COPD expected by 2025.
In its third-quarter 2024 results, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) surpassed analyst expectations, with notable revenue growth across its product lines. The company reported adjusted earnings per share of $12.46, beating the consensus estimate of $11.72, and revenue of $3.72 billion, up 11% year-over-year, exceeding the anticipated $3.66 billion. Sales of its blockbuster drug Dupixent, developed in collaboration with Sanofi, rose 23% year-over-year to $3.82 billion globally. Regeneron’s eye care franchise, led by Eylea HD and Eylea, posted U.S. sales growth of 3% to $1.54 billion, with Eylea HD alone generating $392 million. Libtayo, an immunotherapy for cancer, achieved a 24% increase in global sales, totaling $289 million.
On November 4, TD Cowen maintained its Buy rating and $1,230 price target for Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), reflecting strong third-quarter results and a discussion with CEO Len Schleifer. The analyst noted confidence in Eylea HD’s long-term growth prospects, despite a potential dip in Q4, and emphasized Dupixent’s status as one of the sector’s most promising launches for treating inflammatory conditions.
Baron Health Care Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2024 investor letter:
“We purchased Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a biopharmaceutical company that was built on a foundation in basic scientific research and antibody development. The company has successfully developed several blockbuster medicines, including Eylea and Eylea HD for retinal diseases (such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy) and Dupixent for immunological and inflammatory diseases (such as atopic dermatitis, asthma, and COPD). While Eylea is nearing the end of its patent life and faces potential biosimilar competition, the company has been transitioning patients to Eylea HD, which is a higher dose, longer-acting formulation of Eylea, and Dupixent is growing rapidly through indication expansion. Beyond the current product portfolio, Regeneron has an exciting new product pipeline with over 35 candidates in various stages of development, including a novel treatment for treating severe food allergy, a combination checkpoint inhibitor therapy for melanoma, lung cancer and other solid tumors, biospecific antibodies for blood cancers, and Factor XI antibodies for blood clot prevention, among others. Based on Regeneron’s track record of success discovering and developing new drugs, we are optimistic the pipeline will deliver some successes, which we think will drive upside in the stock.”
