EUR 850.00 For Business Accounts Only

Morningstar | REGN Updated Forecasts and Estimates from 03 Dec 2018

Regeneron has leveraged its leading monoclonal antibody research and development platform to become one of the few biotechs to successfully emerge as a profitable commercial operation and to establish a narrow moat. Lead drug Eylea has global sales north of $6 billion annually and is approved for wet age-related macular degeneration and other eye-related indications. The drug remains well positioned, as its 12-week dosing and potential high-dose formulation should allow it to continue to hold strong market share against Lucentis, Avastin, and Novartis' brolucizumab.Sales of Eylea have grown at a double-digit pace as sales outside the United States ramped up and usage in new indications like diabetic macular edema took hold. Positive data in the larger diabetic retinopathy population should help maintain double-digit growth in 2018, but U.S. Eylea sales are slowing as the product matures, and Novartis expects to launch a competing drug in 2019. LDL cholesterol reduction drug Praluent, which has demonstrated impressive clinical results, saw a slow launch trajectory because of payer restrictions. We think the drug could provide a meaningful benefit to the millions of patients whose disease is still uncontrolled with statins, a market that has nearly $10 billion peak sales potential. Armed with strong cardiovascular outcomes data, Regeneron and partner Sanofi have negotiated an exclusive deal with Express Scripts that should open broader access and allow it to compete more closely with Amgen's Repatha, albeit at a lower price.The company has a full pipeline through its monoclonal antibody collaboration with Sanofi. Beyond Praluent, Regeneron's proprietary human monoclonal antibody technology has led to the launches of Dupixent (atopic dermatitis) and Kevzara (rheumatoid arthritis) in 2017, followed by launches of Dupixent (asthma) and Libtayo (oncology) in 2018. The partners have an ambitious strategy to bring several candidates into trials each year, which should provide Regeneron with more shots at further product revenue. Despite competition, we think Regeneron's diverse pipeline and scientific leadership should comfort investors.