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Regeneron reported that its experimental drug, ubamatamab, showed a high rate of durable responses in patients with a specific, advanced form of ovarian cancer. This particular type of cancer is often resistant to standard chemotherapy, leaving patients with few effective options.
While this is an early-stage study, it is a win for the company's efforts to build a major cancer business. Success here would help reduce the company's reliance on its flagship eye and skin treatments by adding a new source of long-term revenue.
Source: GlobeNewsWire
Argus Research upgraded its view on the company to a buy rating on Thursday. The firm set a price target of $850, suggesting the stock has room to rise about 16 percent from its current level.
This move brings the firm in line with the broader analyst community, which holds an average price target of $844. The upgrade reflects growing confidence in the company's ability to grow its newer drugs even as its older products face more competition.
Source: Argus Research
In a recent study, patients taking an experimental Regeneron drug alongside semaglutide, the active ingredient in weight-loss drugs like Wegovy, lost 50 percent less muscle mass than those taking the weight-loss drug alone. Rapid weight loss often causes the body to shed muscle as well as fat, which can lead to weakness and other health issues.
This is a significant early win for Regeneron's attempt to enter the obesity market. Rather than competing directly with established weight-loss shots, the company is positioning itself to provide a necessary companion treatment. If further trials succeed, this could become a major new revenue stream by making existing weight-loss treatments safer and more effective for patients.
Source: Reuters
Sanofi is paying Regeneron $1 billion upfront and up to $7 billion in future milestone payments to add four new antibodies to their existing partnership. These drugs target immunology, the study of the body's immune system, and are designed to be long-acting versions of treatments for conditions like eczema.
This deal deepens the tie between the two companies, who already share the blockbuster drug Dupixent. For Regeneron, it provides a massive cash injection and shares the high costs of clinical trials, which are the expensive tests required to prove a drug is safe and effective. It also helps ensure that as Dupixent eventually loses patent protection, the company has a new generation of treatments ready to take its place.
Source: Reuters
Regeneron granted one-time performance stock awards to its co-founders, CEO Leonard Schleifer and Chief Scientific Officer George Yancopoulos, effective September 24. These awards replace their annual stock grants for the next decade and include a mandatory holding period that prevents them from selling the shares until 2036.
The payout is tied to aggressive growth targets, including reaching nearly $30 billion in annual revenue from new products, roughly double the company's total revenue last year. By locking the founders into a 10-year window and tying their pay to new drug success rather than just the current portfolio, the board is aligning their personal wealth with the long-term challenge of replacing revenue from older drugs that face new competition.
Source: 8-K filing
Management consistently sets a bar they can clear, with seven beats in the last eight quarters. These are not small wins, as the business is regularly outrunning even the most bullish forecasts.
| Expectation | |
|---|---|
| EPS | $15.99 |
| Revenue | $4.54B |