The runaway success of its vision-restoring drug, Eylea, turned Regeneron Pharmaceuticals(NASDAQ:REGN) into one of biotech’s best performing stocks between 2012 to 2015. However, the company has lost luster with investors since then because of an anemic product launch and a slowing in Eylea’s growth as it’s matured.
As a result, Regeneron Pharmaceuticals is no longer at the forefront of investors’ minds, and I think that could be creating a great opportunity for investors on the sidelines to step up and buy this company for their portfolios.
Dominant position in a growth indication
Eylea’s less frequent dosing schedule than Novartis’ Lucentis and arguably better ability to restore vision in elderly patients suffering from common causes of vision loss, including wet age-related macular degeneration (AMD) and diabetic macular edema (DME), have made it one of the top-selling medications in the world.
In the second quarter, Eylea’s net product sales in the U.S. alone were $992 million, up from $919 million last year. Regeneron pocketed $263 million in profit on Eylea’s sales outside the U.S. last quarter, where Bayer AG (NASDAQOTH:BAYRY) markets it. Ex-U.S. revenue reported on Bayer sales in Q2 2017 was $204 million.
Overall, Eylea’s global sales totaled $1.66 billion in Q2, giving the drug an annualized sales run rate above $5.2 billion worldwide.
The number of people suffering vision loss from wet AMD continues to climb because of aging baby boomers, and the adoption of Western diets worldwide is increasing diabetes and its accompanying cases of vision loss, including DME.
Because these long-term trends are…
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