Regeneron Pharmaceuticals Is My Value Stock Of The Week

Additional drugs are also providing revenue for the company. For instance, Kevzara was approved in the U.S. for treating adult patients with moderate to severely active rheumatoid arthritis. A few years ago, the FDA approved Libtayo to treat patients with metastatic or locally advanced cutaneous squamous cell carcinoma.

The initial uptake of Libtayo was strong, so REGN is working on expanding its label further. The firm also has a solid pipeline. REGN is resuming enrollment of patients with follicular lymphoma and diffuse large B-cell lymphoma in its monotherapy trials of odronextamab.

But REGN’s most popular offering right now is COVID 19 treatment REGEN-COV. The FDA gave Emergency Use Authorization for the antibody cocktail of two monoclonal antibodies (casirivimab and imdevimab). The treatment was designed specifically to block the infectivity of SARS-CoV-2, the virus that causes COVID-19.

The treatment had a strong quarter as it generated total sales of $3 billion in the quarter. During the quarter, the company fulfilled its second agreement with the U.S. government to manufacture and deliver 1.25 million doses of REGEN-COV.

This helped drive substantial growth for the company during the quarter. Earnings came in at $25.80 per share, up 260% year over year. Revenue surged 163% year over year. Even excluding REGEN-COV, sales rose 22% to $2.38 billion, driven by solid demand for Eylea and Dupixent.

REGN has an overall grade of B, translating into a Buy rating in our POWR Ratings system. The company has a Growth Grade of B, partly driven by growth in the recent quarter. Analysts forecast sales to rise another 28.8% year over year during the current quarter and 55.5% for the year. REGN also has a Value Grade of B due to its current valuation.

The stock has a trailing P/E of 11.98 and a forward P/E of 12.48; both are very attractive figures. Its price-to-sales ratio of 6.1 is also well below the industry average. If we consider analyst price targets, the stock is undervalued by as much as 24%. We also provide Momentum, Stability, Sentiment, and Quality grades for REGN, which you can find here.

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