A Fast Growing BioPharma Stock To Buy On The Next Pull Back

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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 (NASDAQ:CELG) and Gilead Sciences (NASDAQ: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 (NASDAQ: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 (NYSE: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:

  1. The 13 analysts that cover the stock have a $179 a share median price target on the stock.
  2. 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).
  3. 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.
  4. 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.

Disclosure: I am long CELG, GILD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.