Morgan Stanley’s Best Overweight & Quality Stocks: Top 25 Stocks

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

Number of Hedge Fund Holders In Q2 2024: 57

Average Analyst EPS % Revision: -0.2%

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a commercial stage and profitable biotechnology company. It generated $13.4 billion in revenue in the trailing twelve months and was profitable as well courtesy of its $4.3 billion in profits over the same period. This makes the stock relatively stable when compared to riskier biotech companies, and Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s shares are up by 16% year to date. The firm’s hypothesis depends on sales of commercialized treatments such as Eylea. During the first and second quarters, the high dose variant of the drug’s sales were $200 million and $304 million, respectively. This drug is key to Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s hypothesis as sales of the standard Eylea dropped during Q1 and were relatively flat during Q2. Additionally, the stock dropped by more than 4% in September after Amgen secured a court ruling in favor of its Eylea biosimilar. However, over the long term, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s robust pipeline of COPD, hives, small cell lung cancer, and allergy treatments can inject more life into the stock.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN’s management shared details about its pipeline during the Q2 2024 earnings call:

“In June, the European Commission approved DUPIXENT for COPD in patients with raised blood eosinophils, marking the first global regulatory approval for DUPIXENT in COPD. This approval enables DUPIXENT to address the approximately 220,000 eosinophilic COPD patients in the EU that are currently uncontrolled on maximum and eligible therapy. The approval also represents the first biologic approved to treat this disease.

We continue to work with the FDA regarding its ongoing review for this indication and expect their decision by the September 27 PDUFA date. We and our partner, Sanofi, are prepared for US launch that many pulmonologists, respiratory key opinion leaders and their patients have been eagerly anticipating. There is a high unmet need in COPD with Type 2 inflammation with approximately 300,000 eligible patients in the United States and our potential launch represents a significant driver for DUPIXENT’s continued growth. LIBTAYO global net product sales were $297 million in the second quarter, an increase of 43% on a constant currency basis. Despite intense competition, LIBTAYO has maintained its leadership position in non-melanoma skin cancers, while making impressive inroads in non-small cell lung cancer.”