Regeneron (NASDAQ:REGN) is a long time buy pick. The quarterly results, posted on Feb. 6, affirm the company’s strong prospects ahead.
Regeneron posted revenue growth of 12.4% Y/Y to $2.17 billion. Non-GAAP EPS was $7.50. In the atopic dermatitis space where patients suffer from inflamed, itchy skin, Dupixent could very well produce $3.5 billion in annual revenue in 2020.
The drug will win approval for treating subjects age 6 to 12. Asthma patients may get treated with Dupixent, too.
Libtayo is a cancer drug whose revenue may accelerate in the next year.
In the near-term, concerns on controlling the spread of the coronavirus in China will give Regeneron positive coverage.
The company has a cocktail drug that may give patients effective treatment. On Feb. 4, the company announced a collaboration deal with HHS to develop treatments for the coronavirus infection.
The two companies had a collaboration in place in 2017. The partnership “is focused on discovery, research, development and manufacturing of a portfolio of antibodies targeting up to 10 pathogens that pose a significant risk to public health.”
If the drug treats influenza effectively, the VelociSuite technologies may treat 2019-nCoV. Time is of the essence. The spread may accelerate. China imposed a travel ban early, a move that should limit its spread.
But asymptomatic carriers may worsen the outbreak outside of the region.
Regeneron stock is a buy. The uptrend is resuming and will reward shareholders.
