When Merck (NYSE:MRK) announced an anti-viral pill to treat COVID-19 patients, Regeneron (NASDAQ:REGN) stock plunged by around 9%. The stock is well off the $686.62 high. Why did Regeneron fall so fast?
Regeneron’s antiviral treatment costs more and is not as easy to administer. Merck’s treatment is convenient. It would pressure Regeneron’s market. Still, Regeneron does more than just sell Covid-19 treatments. It has a deep pipeline in the cancer field. It is working with partners in the treatment of liver diseases.
REGN partnered with Intellia Therapeutics (NASDAQ:NTLA). In the summer, it released phase 1 trial data for a CRISPR candidate. It showed that it could genetically edit cells inside the liver. In hindsight, NTLA peaked after the news, while REGN stock fell slowly. Regeneron shareholders may treat the development as a future growth prospect. Even though Allogene (NASDAQ:ALLO) said the FDA halted its CAR-T programs on safety concerns, Regeneron generates a rich cash flow.
The company’s blockbuster Eylea and Dupixent drugs will more than fund its current pipeline. Investors may wait for the downtrend in Regeneron to end. This could take time, as markets sold off bigger pharmaceuticals recently. That includes JNJ, BMY, and ABBV stock. Eventually, the sentiment will improve. When it does, Regeneron stock will bottom.
