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Regeneron: Growth Plans In Immuno-Oncology (ASCO Update)

DoctoRx profile picture


  • REGN has gone from doormat to leader in short order.
  • There have been multiple drivers of this, one of which is discussed below: immuno-oncology (IO).
  • Behind the scenes, REGN has been doing more cutting-edge R&D than it was letting on; commercial potential is significant and could go into the 2040s.
  • REGN is no longer cheap, but it may represent good value for the market we are faced with. Risks to buying the stock near $600 are, however, significant.

What bear market?

And just like that, Regeneron's (NASDAQ:REGN) bear market is gone. Years of striking out with a drug the company believed in (Praluent) or hitting a bunt single with another one it overestimated (Kevzara) have been erased with the latest surge in the stock that recently eclipsed the 2015 high before a modest pullback.

Some of the good news was covered in my bullish article of May 7, 2020, Regeneron: Cancer, COVID, And More Could Be Breaking Its Way.

Positive news since then includes:

REGN closed May 6 at $553.50. It is now at $597.

The next section reviews my vision for REGN's revival as discussed about a year ago.

REGN begins to follow the script for a winning stock

On May 13, 2019, I wrote How Regeneron Can Take Its Sad Song And Make It (Much) Better. The stock was around $302.

One key point came from the title of a section, namely:

Immuno-oncology: better prospects than the headlines suggest.

I was getting more bullish ahead of the evolving data. So far, that looks like the right call.

Another key point came in the final section, where I led with this:

Perhaps REGN will consider some of the following measures:

1. Announce a large stock buyback...

3. Find a way to show investors how REGN plans to generate much larger profits down the road.

These have now been accomplished.

I summarized my views by saying:

Due to REGN's many strengths, I continue to look toward the 2025 time period with optimism.

All the above hold

This article was written by

DoctoRx profile picture
Over 40 years of investing in individual stocks. Retired physician (cardiologist). Also retired from various roles in the US pharmaceutical industry. Main focus is on growth stocks, mostly biotech and tech, but with fundamental value considerations. Secondary focus on macro trends driving asset allocation.

Analyst’s Disclosure: I am/we are long REGN, RHHBY, GILD, TSLA. 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.

Not investment advice. I am not an investment adviser.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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