Regeneron (REGN) Stock On Fire: What's Behind The Surge?
Zacks Investment Research | Jun 22, 2017 09:38PM ET
Shares of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) have moved up 14.9% over the last 30 days.
In fact, so far this year, Regeneron’s shares have rallied 43.4%, compared with the 12% gain of the Zacks classified Medical-Biomedical and Genetics industry.
Let’s find out what is driving the stock.
Eylea continues to Drive Revenues
Regeneron’s key growth driver, Eylea, continues to drive revenues and the company is expanding the drug's label for additional indications.
Eylea is approved for the treatment of neovascular age-related macular degeneration (wet AMD) and diabetic macular edema (DME). The drug is also approved for macular edema following retinal vein occlusion, which includes macular edema post central retinal vein occlusion as well as macular edema following branch retinal vein occlusion.
Meanwhile, Regeneron is working on expanding Eylea label into additional indications for the treatment of moderately severe to severe non-proliferative diabetic retinopathy in patients without DME and neovascular glaucoma. Label expansion into additional indications would give Eylea access to higher patient population and increase the commercial potential of the drug.The company also received a boost when the FDA approved Dupixent (dupilumab) Injection for the treatment of adults with moderate-to-severe atopic dermatitis (AD). Pricing will play a key role in the uptake of the drug. Hence, we expect investors to focus on the performance of Dupixent and Kevzara. Both the drugs were developed in partnership with Sanofi (PA:SASY) (SNY).
Earlier in the week, Novartis (NYSE:NVS) released positive data on its wetAMD candidate, RTH258 (brolucizumab) which is poised to pose competition to Eylea. The candidate met the primary and key secondary endpoints in two phase III studies, HAWK and HARRIER-non-inferiority of RTH258 to Eylea in mean change in best-corrected visual acuity (BCVA) from baseline to week 48, and average mean change over the period of week 36-48, respectively. However, Novartis expects to complete the pharmacokinetic study with the final manufacturing process to enable filing in 2018 only. Hence, the candidate is not likely to hit markets before 2019 giving Eylea a breather.
Dupixent and Kevzara in Focus
Investors are upbeat about two key approvals so far in 2017 and looking forward to potential launches of these drugs.
In May the FDA approved Kevzara for treatment of adult patients with moderate to severe active rheumatoid arthritis who have an inadequate response to or intolerance to one or more biologic or non-biologic Disease-Modifying Anti-Rheumatic Drugs.
The company also received a boost when the FDA approved Dupixent (dupilumab) Injection for the treatment of adults with moderate-to-severe atopic dermatitis (AD). Pricing will play a key role in the uptake of the drug. Hence, we expect investors to focus on the performance of Dupixent and Kevzara. Both the drugs were developed in partnership with Sanofi (NYSE:SNY) .
Get The News You Want
Zacks Rank
Currently, Regeneron Pharma sports a Zacks Rank #1 (Strong Buy). Another top-ranked stock in healthcare sector is VIVUS, Inc. (NASDAQ:VVUS) with the same rank as Regeneron. You can see .
VIVUS’s loss per share estimates lessened from 50 cents to 39 cents for 2017 in the last 60 days. The company posted positive earnings surprises in all four trailing quarters with average beat of 233.69%
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.