Stock (Symbol) |
Regeneron (REGN) |
Stock Price |
$538 |
Sector |
| Healthcare |
Data is as of |
| December 28, 2015 |
Expected to Report |
| Feb 8 – Feb 12 |
Company Description |
 REGN, Inc. is an integrated biopharmaceutical company that discovers, invents, develops, manufactures and commercializes medicines for the treatment of serious medical conditions. REGN commercializes medicines for eye diseases, colorectal cancer, and a rare inflammatory condition and has product candidates under development in other areas, including hypercholesterolemia, oncology, rheumatoid arthritis (RA), asthma and atopic dermatitis. REGN’s marketed products include EYLEA (aflibercept) injection, ZALTRAP (ziv-aflibercept) injection for intravenous infusion and ARCALYST (rilonacept) injection for subcutaneous use. The Company has 17 product candidates in clinical development. Its product candidates consist of two trap-based clinical programs and 15 human monoclonal antibody product candidates. REGN has generated each of the antibodies using its VelocImmune technology. Source: Thomson Financial |
Sharek’s Take |
 The term fast-track is normally used for a drug the FDA expedients the review of which treats a serious condition. In this case I’m using it for Regeneron (REGN) which is on a fast-track of profit growth. REGN’s profits almost tripled in 2014 due to Eylea treats molecular degeneration, the leading cause of blindness in the US, which works better than competing drugs Avastin and Lucentis. The drug, which accounts for two-thirds of company revenue, also just gained approval for the treatment of diabetic retinopathy in patients with diabetic macular edema and there are plans to expand the drug even further. Regeneron now has another blockbuster, one that could potentially be bigger than Eylea. Praluent, which lowers “bad” LDL-cholesteral in patients with heart disease who need more than the standard treatment, was approved by the FDA in July. The wholesale cost is $40 a day but the company has been giving some away as insurance companies try to figure reimbursement policies. This new drug could one day prove to prove to prevent heart attacks and strokes. Regeneron also has a good pipeline of 15 other drugs in development, including sarilumab, which treats rheumatoid arthritis, and dupilumad which could help asthma and/or atopic dermatitis. The company is working on a drug that targets cancer as well. In my eyes, this is the best Biotech stock for investors searching for rapid growth, sales are growing around 50% and REGN has upside of more than 40% to my 2017 Fair Value. |
One Year Chart |
 I’ve been a fan of this stock for years, but felt the price was always too high. Then the Biotech sector got hit in September and I was able to pick the stock up on a dip. If you didn’t get in yet, this is still a good time to buy as REGN’s P/E is a modest 36. I feel the stock is worth 40-something times earnings. |
Fair Value |
 REGN made its huge move on the back of Eylea, which produced more profits than analysts predicted, so the stock soared with profit estimates. Now this new drug could be even better. My Fair Value of 42x earnings gives the stock significant upside. The company also has other drugs in the works, which could boost profits even further. |
Bottom Line |
 The ten-year chart shows Regeneron has been on the fast-track for almost five years now. And with a new blockbuster being distributed now, the stock could continue on this track. In my eyes, this is the best Biotech stock for investors searching for rapid growth. Regeneron ranks 6th in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
6 of 38Aggressive Growth Portfolio 6 of 17Conservative Stock Portfolio N/A |
