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Tarrytown, New York-based Regeneron Pharmaceuticals, Inc. (REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases. Valued at $82.5 billion by market cap, the company's portfolio boasts nine marketed drugs - Eylea, Dupixent, Praluent, Kevzara, Evkeeza, Libtayo, Inmazeb, Arcalyst, and Zaltrap.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and REGN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the biotechnology industry. REGN has a strong product portfolio, including marketed products such as Eylea and Dupixent. The company's innovative pipeline and successful product commercialization drive its financial performance.
Despite its notable strength, REGN slipped 2.3% from its 52-week high of $803.42, achieved on Nov. 14, 2024. Over the past three months, REGN stock gained 33.5%, outperforming the S&P 500 Index’s ($SPX) 5.4% gains during the same time frame.
In the longer term, shares of REGN rose 10.2% on a YTD basis and climbed 4.2% over the past 52 weeks, underperforming SPX’s YTD gains of 15.8% and 13.1% returns over the last year.
To confirm the bullish trend, REGN has been trading above its 50-day moving average since early July, with slight fluctuations. The stock has been trading above its 200-day moving average since late October.
REGN's underperformance stems from challenges such as increased scrutiny of drug pricing, regulatory uncertainty, and competition from well-resourced pharmaceutical giants, all of which could hinder growth.
On Oct. 28, REGN shares jumped 11.8% after reporting its Q3 results. Its adjusted EPS of $11.83 beat Wall Street expectations of $9.44. The company’s revenue was $3.8 billion, beating Wall Street's $3.6 billion forecast.
In the competitive arena of biotechnology, Incyte Corporation (INCY) has taken the lead over REGN, showing resilience with a 53% gain on a YTD basis and a 41.2% uptick over the past 52 weeks.
Wall Street analysts are reasonably bullish on REGN’s prospects. The stock has a consensus “Moderate Buy” rating from the 28 analysts covering it. While REGN currently trades above its mean price target of $769.61, the Street-high price target of $910 suggests a 16% upside potential.
