Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight

1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 62

Cramer noted that Regeneron Pharmaceuticals, Inc.’s (NASDAQ:REGN) sales did not live up to his expectations and said:

“Regeneron’s a quandary. I’ve gotta tell you, I expected sales to be better, they’re not. I don’t wanna give up on a stock down at $749, but I do prefer Eli Lilly even at $900 because you know, I think that $900 is the next stop for Lily at $813. I’m not sure what the next stop is for Regeneron.”

Regeneron (NASDAQ:REGN) develops and commercializes medicines for a variety of conditions. It also focuses on developing new treatments for a range of medical conditions. In the third quarter, the company’s higher-dose version of EYLEA, called EYLEA HD, underperformed in terms of quarterly sales.

For the quarter, EYLEA HD generated $392 million in sales, falling short of expectations for the second consecutive quarter. However, the company noted that net sales of EYLEA were positively impacted by an increase in wholesaler inventory levels for EYLEA HD at the end of the third quarter, contributing an additional $40 million in revenue. Despite this, management anticipates that EYLEA HD sales in the fourth quarter will be negatively affected as wholesalers absorb this inventory boost.

It should be noted that Regeneron (NASDAQ:REGN) management remains optimistic about the potential for EYLEA HD, particularly after its first year on the market. Marion McCourt, executive vice president of commercial, pointed out that positive feedback from both physicians and patients has helped EYLEA HD achieve billion-dollar brand status, signaling strong growth potential for the drug moving forward.

While we acknowledge the potential of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than REGN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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