Regeneron Has $16 Billion in Net Cash and Trades Near 20 Times Earnings. Is It the Cheapest Big Biotech?
Key PointsRegeneron sells 16 products, and they have helped revenue climb in recent years.
Regeneron Pharmaceuticals (REGN) is a commercial-stage biotech company with a strong portfolio of products in immunology, ophthalmology, and oncology. The company's stock has risen over 40% in the past year, and it currently trades at a valuation of 20x trailing 12-month earnings, making it the cheapest big biotech in this category. With $16 billion in cash and marketable securities, Regeneron has the resources to support its pipeline and future growth.
Regeneron's earnings have grown significantly due to its successful product pipeline, including immunology drug Dupixent and cancer drug Libtayo, as well as the recent launch of higher-dose Eylea HD for eye disease. The company has also expanded its partnership with Sanofi, sharing in the profits from all future products resulting from the collaboration. In addition, Regeneron has a pipeline of about 50 candidates, with ongoing phase 3 programs in multiple myeloma, lymphoma, anticoagulation, and obesity.
Recent sales figures for Libtayo and Eylea HD show a record increase, with Libtayo sales up 51% to $550 million and Eylea HD sales up 62% to $699 million. This growth indicates a shift into a new wave of revenue, further supporting the company's strong position in the biotech market. Regeneron has also made significant share repurchases, investing $2.3 billion this year with a target of $3 billion for the year. All of these factors make Regeneron an attractive investment opportunity in the current market.
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