Regeneron Pharmaceuticals Inc (REGN): Is This Eye Drug Worth The Hype?

Page 1 of 2

Editor’s Note: The original article incorrectly references Lucentis’ and Eylea’s dosage instructions. This has been corrected and Motley Fool sincerely apologizes for the error.

Regeneron Pharmaceuticals Inc (NASDAQ:REGN) should spike– every time there’s a slight pullback the stock shoots higher. Last Thursday Regeneron gained almost 10% behind a positive Phase 3 trial for its drug Eylea.

Regeneron Pharmaceuticals is a $25 billion biopharmaceutical company with three approved products and annual sales of $1.59 billion. Right away, that ratio not might look right, as a $25 billion company should have more revenue than $1.59 billion. But, its stock price is counting on growth, as it has 13 products being tested in clinical trials, and three different drugs in Phase 3 (five total studies).

Regeneron Pharmaceuticals Inc (NASDAQ:REGN)

Taking a look at Eylea

Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is one of the most promising drug companies in the market, and it is because of Eylea. Currently, Eylea is used to treat “wet” age-related macular degeneration, the leading cause of blindness in the elderly. It is approved in the U.S., and Regeneron markets the drug exclusively – but Bayer markets the drug oversees and receives a royalty on oversees revenue.

While Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and Bayer are partners in developing and marketing Eylea, there’s no question Eylea has been developed using the technology of Regeneron and is primarily Regeneron’s drug. Its most direct competition comes from RocheHoldings‘  drug Lucentis. Roche is the world’s largest vaccine developer, and when Eylea was launched many feared that it would not be able to compete with the presence of Roche and its drug.

Eylea set to expand

Eylea is quickly replacing all competition (including Roche’s Lucentis) as both Regeneron Pharmaceuticals Inc (NASDAQ:REGN)and Bayer have done a great job marketing the drug. Not to mention, Eylea is superior in that it only has to be injected once every two months; compared to monthly like other drugs.

However, there is another drug in the works that must be mentioned, and that is Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE)’ drug Optina. This drug treats the same condition, but instead of a needle to the eye, it is taken in pill form to repair blood vessels. But, Optina is still in clinical trials, awaiting data, and there are serious doubts the drug will be effective.

If Regeneron Pharmaceuticals Inc (NASDAQ:REGN) believed Optina would challenge its future sales, there’s no doubt it would buy the company. Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) trades at a market cap of just $220 million while Regeneron is a $25 billion powerhouse. And Regeneron has an incredible pipeline along with a drug that is growing and expanding. In short, it has the cash.

Regeneron Pharmaceuticals Inc (NASDAQ:REGN), not counting proceeds to Bayer, is expected to achieve revenue of $1.3 billion this year. The drug is well on its way to blockbuster status and has accomplished this feat with the one application. Therefore, its 10% rise last Thursday shouldn’t serve as a surprise; as the data shows that Eylea works on other applications as well.

Regeneron Pharmaceuticals Inc (NASDAQ:REGN) produced positive top-line data for the treatment of myopic choroidal neovascularization (mCNV) in a Phase 3 trial. mCNV is a disease where abnormal blood vessels grow into the retina in people who are severely short-sighted. This disease is quite different from age-related macular degeneration, showing the potential diversification of the product.

The addition of mCNV won’t create billions in additional sales, but analysts predict that it could boost sales another $200 million in the U.S. alone. Last year, Roche’s Lucentis saw sales of $1.5 billion and it treats wet age related macular degeneration, diabetic macular edema, and macular edema following retinal vein occlusion. Basically, it treats a variety of diseases of the eye, and its revenue is expected to drop by about half in the next year. This cut is because of Regeneron Pharmaceuticals Inc (NASDAQ:REGN), and the fact that Eylea is well on its way to offering a wide range of treatments that are superior to existing treatments.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!