REGN - Embedded Expectations Analysis - 2021 09 23
Regeneron Pharmaceuticals, Inc. (REGN:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with an 8.7x Uniform P/E, implying bearish expectations for the firm. Moreover, management may be concerned about the sustainability of REGEN-COV tailwinds, pipeline investment growth, and new drug efficacy.Specifically, management may lack confidence in their ability to sustain growth through pipeline investments and continue generating strong cash flows from REGEN-COV government contracts. Furthermore, they may be exaggerating the strength of REGEN-COV restocking trends and its antibody capabilities for immunocompromised patients. Management may also have concerns about rising REGEN-COV manufacturing costs and the potential and efficacy of their MUC16xCD3 bispecific combination with Libtayo. In addition, they may have concerns about clinical efficacy for several other treatments including Evkeeza, Odronextamab, and Dupixent for former smokers.
Regeneron Pharmaceuticals is a biotechnology company that discovers, invents, develops, manufactures, and commercializes medicines for the treatment of diseases. The company's commercialized medicines and product candidates in development are designed to assist patients with eye disease, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, neuromuscular diseases, infectious diseases, and rare diseases. The company's products include: EYLEA (aflibercept) injection, which is used for the treatment of neovascular age-related macular degeneration, diabetic macular edema; and Dupixent (dupilumab) injection, which is used for the treatment of adult patients with atopic dermatitis.
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