Shares of biotech major Regeneron Pharmaceuticals REGN have surged 64.3% in the year so far compared with the industry’s growth of 2.7%.
Price has rallied particularly from the onset of the year as Regeneron is one of the leading biotech companies along with Gilead Sciences, Inc. GILD and Moderna Inc. MRNA that is working on drugs and vaccines for the treatment coronavirus, as more and more cases are being reported every day.
Regeneron has initiated clinical trials on REGN-COV2, its investigational two-antibody “cocktail” for the treatment and prevention of COVID-19. A phase III study to evaluate REGN-COV2’s ability to prevent infection among uninfected people who have had close exposure to a COVID-19 patient (such as the patient’s housemate) was initiated following a review of the REGN-COV2 phase I safety results by the Independent Data Monitoring Committee (IDMC). The study is being run jointly with the National Institute of Allergy and Infectious Diseases (NIAID).
In addition, REGN-COV2 moved into the phase II/III portion of two adaptive phase I/II/III studies testing the cocktail’s ability to treat hospitalized and non-hospitalized patients with COVID-19. Regeneron plans to report initial virology and biomarker results from the REGN-COV2 treatment trials next month. The successful development and commercialization of the candidate will be a great boost for the company, given the widespread outbreak.
Meanwhile, Regeneron has signed an agreement with the Biomedical Advanced Research and Development Authority (BARDA) of the U.S. Department of Health and Human Services (HHS) and the U.S. Department of Defense, whereby the company was awarded a $450-million contract to manufacture and supply filled and finished REGN-COV2 to the U.S. government. Per the agreement, the company will manufacture a fixed number of bulk lots beginning the summer of 2020 and perform fill/finish and storage activities starting the third quarter of 2020.
Regeneron has recently collaborated with Swiss pharma giant Roche RHHBY to develop, manufacture and distribute REGN-COV2, whereby the former will distribute REGN-COV2 in the United States and the latter will be responsible for distribution outside the country. Under this agreement, both companies will jointly fund and execute the ongoing phase III prevention and phase I healthy volunteer safety studies, as well as any additional global studies to evaluate further the potential for REGN-COV2 in treating or preventing COVID-19.
Regeneron’s efforts to develop REGN-COV2 are impressive and a positive outcome will be a great boost for it and is much needed, given the widespread outbreak.
The company’s second-quarter results were impressive as it beat on both sales and earnings, driven by strong Dupixent growth. The company’s efforts to expand the label of its approved drugs and concurrently develop the pipeline are impressive.
While lead drug Eylea sales have been affected by the ongoing pandemic, Regeneron’s strong portfolio should enable it to maintain momentum in the near future.
Regeneron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research
