Biotech stocks have been one of the few sectors that have posted positive performance during post-election selloff (See chart). Two of my core biopharma holdings, Celgene (CELG) and Gilead Sciences (GILD), have been a significant part of that outperformance. Both announced positive results from phase trials this week. (Click on links to see why I hold both stocks). Another fast growing biopharma that seems to be picking up positive catalysts is Regeneron Pharmaceuticals (REGN). I will be looking to add it to my portfolio if the market continues to pull back.
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Key recent positives for Regeneron:
- Credit Suisse just initiated the shares as an "outperform" with a $187 a share price target.
- Consensus earnings estimates for both FY2012 and FY2013 have risen sharply over the past month, unusual during the tepid third quarter earnings season.
- It is showing good progress in developing a new cholesterol drug with Sanofi (SNY).
Regeneron Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing medicines for the treatment of serious medical conditions in the United States.
4 additional reasons REGN should be part of a growth portfolio at $146 a share:
- The 13 analysts that cover the stock have a $179 a share median price target on the stock.
- The company will almost triple revenues this fiscal year and analysts believe another 30 plus percent sales increase is in store for FY2013. The stocks sports a five year projected PEG of under 1 (.66).
- The company has absolutely crushed earnings estimates five of the last six quarters. Consensus earnings estimates for next quarter have moved up approximately some 75% over the last two months.
- Regeneron has a deep pipeline and has extensive experience with substantial external funding and risk sharing. Its Eylea injection product for the treatment of neovascular age-related macular degeneration is consistently beating estimates and taken market share.
