6. Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 68
Upside Potential as of February 19: 46.81%
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) discovers, develops, and commercializes life-transforming medicines for a range of serious diseases. With a portfolio of approved therapies, including EYLEA, Dupixent, and Libtayo, and a robust pipeline targeting eye diseases, inflammatory conditions, cancer, and rare diseases, it’s advancing innovative treatments and improving patient outcomes globally.
Dupixent, with over a million patients globally, saw global sales rise 15% to $3.7 billion in Q4 2024. US sales alone rose 10%. EYLEA/EYLEA HD generated combined US sales of $1.5 billion in Q4, capturing 46% of the anti-VEGF (vascular endothelial growth factor) market, with EYLEA HD sales reaching $1.2 billion for the full year. Libtayo saw global sales jump 50% to $367 million in Q4. These commercial successes translated to a 10% year-over-year revenue.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is expanding these franchises through new indications and product enhancements. For EYLEA HD, label expansions and a prefilled syringe are expected to drive uptake. Libtayo is targeting new approvals in skin and lung cancers. Dupixent is expanding into COPD, chronic urticaria, and bullous pemphigoid.
Baron Health Care Fun invested in Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) due to its strong track record in drug development, successful existing products, and promising pipeline. This was despite the upcoming patent expirations. It stated the following 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.”
