Regeneron Pharmaceuticals Stock May Be Worth Buying Again - Rating Upgrade

Summary

• Regeneron Pharmaceuticals, Inc. faces declining Eylea sales due to competition from Roche's Vabysmo and biosimilars like Amgen's Pavblu, but Dupixent's strong growth and new indications provide a robust near-term revenue driver.
• Libtayo and the oncology pipeline offer potential, but face tough competition and are unlikely to become blockbuster catalysts in the short term.
• The company's move into obesity drugs is a favorable development, with considerable potential from its experimental drug Trevogrumab, which shows promise in early trial data.
• Financials remain solid with strong free cash flow, a healthy balance sheet, and historically low valuation metrics, supporting a favorable risk/reward profile.
• I rate REGN stock a buy at current levels, especially near $480-490, expecting patient investors to be rewarded as pipeline and Dupixent growth offset Eylea declines.

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Company Background and Update

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a Tarrytown, NY-based biotech company, founded in 1988, that has become a leading player in the specific area of a blood vessel inhibitor known as the VEGF-trap. They

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.