REGN - Regeneron Pharmaceuticals: Time To Change My Strategy After Encouraging Q4 2024
2024-02-10 05:20:34 ET
Summary
- Regeneron Pharmaceuticals reported strong Q4/2023 earnings, exceeding expectations and showing impressive growth from Dupixent and Libtayo.
- The company's next generation of blockbuster drugs are offsetting fading EYLEA sales, extending Regeneron's growth track into the next decade.
- Regeneron's big growth drivers are its Retinal franchise, Dupixent, and Libtayo, with potential supplementary drivers in immuno-oncology combinations and the obesity market.
Regeneron Pharmaceuticals (REGN) has been one of my favorite growth stocks over the past several years. In fact, REGN is one of my "Top Ideas" in the Compounding Healthcare investing group on Seeking Alpha. Yet, I have never published a premium article covering Regeneron for Seeking Alpha despite all of their R&D and financial achievements. Now, years later, I am deciding to post on Regeneron not because I am overly bullish on the ticker, but because I have been delightfully wrong about the company's performance coming out of the COVID-19 pandemic. I was concerned the fading COVID-related revenue and fears around EYLEA's approaching patent expiration were going to raise concerns amongst investors. However, Regeneron just reported their Q4/2023 earnings with a beat on EPS and revenue, plus, some impressive growth from Dupixent and Libtayo. It appears that Regeneron's next generation of blockbuster drugs are easily picking up the slack from fading EYLEA sales and the company's growth track may extend into the next decade. Therefore, I need to adjust my REGN strategy to take advantage of the additional upside potential....
Regeneron Pharmaceuticals: Time To Change My Strategy After Encouraging Q4 2024