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Regeneron (REGN) Outperforms YTD: What's in Store for 2023?

Regeneron Pharmaceuticals, Inc. REGN is having a good run, with shares gaining 16.4% in the year so far against the industry’s decline of 19.7%.

In fact, Regeneron is one of the few companies that has been outperforming the biotech industry in 2022.

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Zacks Investment Research


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Regeneron recently delivered better-than-expected third-quarter 2022 results, driven by growth in lead drug Eylea (aflibercept) and its share of profits/losses in connection with global sales of Dupixent.

The top growth driver, Eylea, approved for various ophthalmology indications, has been a consistent performer for Regeneron and should maintain momentum on sustained label expansions.

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Regeneron had earlier announced that the two studies evaluating aflibercept 8 mg with 12- and 16-week dosing regimens in patients with diabetic macular edema and wet age-related macular degeneration were successful. The company is evaluating a higher dose of aflibercept with less frequent injections in the targeted population. The results impressed investors.

Regeneron is jointly developing aflibercept 8 mg with Bayer AG BAYRY. While REGN records net product sales of Eylea in the United States, Bayer records net product sales of the drug outside the United States. Regeneron records its share of profits/losses in connection with sales of Eylea outside the United States.

Another growth driver in Regeneron’s armory is Dupixent, for which it has a collaboration with Sanofi SNY. Solid sales of Dupixent (approved for use in certain patients with atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis) have boosted the top line significantly. Sanofi records global net product sales of Dupixent, while REGN records its share of profits/losses in connection with global sales of the drug.

Regeneron is also looking to diversify in the lucrative oncology space with Libtayo (cemiplimab-rwlc), indicated in certain patients with advanced basal cell carcinoma, advanced cutaneous squamous cell carcinoma and advanced non-small cell lung cancer (NSCLC).

The European Commission recently approved PD-1 inhibitor Libtayo for another indication. The drug has been approved as a monotherapy for the treatment of adult patients with recurrent or metastatic cervical cancer and disease progression on or after platinum-based chemotherapy. The FDA approved Libtayo in combination with platinum-based chemotherapy for the first-line treatment of adult patients with advanced NSCLC with no EGFR, ALK or ROS1 aberrations.

Regeneron has approximately 35 product candidates in clinical development, including a number of approved drugs for which it is investigating additional indications.

Growth in Eylea and Dupixent through further penetration in existing indications and a promising late-stage pipeline set the momentum for growth.

However, stiff competition from the potential entry of generics and new treatment options weigh on Eylea. While Libtayo holds promise, competition is stiff in this oncology space with many formidable drugs.

The contribution from REGEN-COV, a cocktail of two monoclonal antibodies — casirivimab and imdevimab) — for COVID-19 has seen a massive decline in 2022 from 2021, thereby pulling down year-over-year growth.

Regeneron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report

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Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report

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