Amy Raskin, CIO, Chevy Chase Trust Regeneron Pharmaceuticals Inc REGN-Q BUY Sep 25, 2024

Trades at 19x earnings, but have a huge drug pipeline.

Shares are down in the past 24 hours due to a delay in a drug approval. But another drug remains strong in sales, and they have double-digit in oncology drugs in trials. A great science company.

A quality company. Trades at 17x. The FDA is delaying approval of a drug, but that is correctable because the issue isn't about safety or efficacy.

The momentum is waning, and last quarter revenue growth was only 14%. They're coming to the end of the road.

An analyst upgraded this to $1,025, a very long way to go. He's gained 40% in this himself. It's reasonable at a 24x PE and enjoys momentum. Sees nothing to derail this.

He's bullish pharmas if the economy weakens. He likes it for growing organically, not buying companies, and in developing its drugs in-house or with partners. Their drug pipeline overcomes worries of their existing drugs coming off patent. Their key drug, Eylea, topped $1.04 billion in Q1 and $5.89 billion in full-year US net sales. But Roche has released a rival drug, while Eylea will come off patent in a couple years as they successfully protect their patent in court. Also, REGN just developed a new version of Eylea. Dupixent is their second-biggest drug and is performing well as well. Despite its growth, REGN trades at only 22x forward PE, and announced a $3 billion share buyback.

Are showcasing their key drugs next week, but he remains focused on their obesity drug candidate. It's still early in those test results.

Run by a fine CEO. Shares are up long term, and they have a lot of promising drugs in their pipeline, including one in weight-loss.

It's lost a third of its market cap and the selling is overdone. Now, is a buying opportunity.