If You Invested $1000 in Regeneron 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Regeneron (REGN) ten years ago? It may not have been easy to hold on to REGN for all that time, but if you did, how much would your investment be worth today?
Regeneron's Business In-Depth
With that in mind, let's take a look at Regeneron's main business drivers.
Tarrytown, NY-based Regeneron is a biotechnology company focused on the discovery, development and commercialization of treatments targeting serious medical conditions. The company’s portfolio boasts nine marketed drugs — Eylea (for several eye diseases), Dupixent (asthma, atopic dermatitis, and chronic rhinosinusitis with nasal polyposis), Praluent (heterozygous familial hypercholesterolemia), Kevzara (moderately-to-severely active rheumatoid arthritis), Libtayo (metastatic or locally advanced cutaneous squamous cell carcinoma, locally advanced first-line non-small cell lung cancer ("NSCLC"), and locally advanced basal cell carcinoma ("BCC")}, Evkeeza (homozygous familial hypercholesterolemia, Inmazeb (Ebola) Arcalyst and Zaltrap. The company also developed an antibody cocktail for COVID-19, REGEN-COV, which significantly boosted sales in 2021. REGEN-COV is a cocktail of two monoclonal antibodies (casirivimab and imdevimab, also known as REGN10933 and REGN10987, respectively) and was designed specifically to block the infectivity of SARS-CoV-2, the virus that causes COVID-19. Regeneron has a collaboration agreement with Roche for the same.
While Regeneron has co-developed Eylea with Bayer’s HealthCare unit, Praluent was co-developed with Sanofi. Regeneron records net product sales of Libtayo in the United States, and Sanofi records the same outside the country. Both the companies equally share profits/losses in connection with global sales of Libtayo. Sanofi records global net product sales of Dupixent, Kevzara and Zaltrap. Regeneron records its share of profits/losses in connection with global sales of Dupixent and Kevzara. Sanofi pays the company a percentage of net sales of Zaltrap.
Regeneron collaborated with Bayer for the joint development and commercialization of co-formulated combinations of Eylea, rinucumab and nesvacumab for the treatment of ocular diseases or disorders outside the United States. In September 2016, Regeneron and Teva announced a global agreement for the development and commercialization of the former’s experimental nerve growth factor (NGF) antibody, fasinumab.
Regeneron’s revenues comprise collaboration revenues, net product sales and technology licensing and other revenues. Total revenues of $8.5 billion in 2021 were up 30% from sales in 2020. Eylea sales came in at $5.8 billion in the United States.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Regeneron, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in October 2012 would be worth $4,650.66, or a 365.07% gain, as of October 4, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 153.51% and the price of gold went up -8.74% over the same time frame.
Looking ahead, analysts are expecting more upside for REGN.
Regeneron’s performance has been strong with broad-based growth. Solid demand for Eylea and Dupixent maintained momentum for the company. However, sales from REGEN-COV took a hit due to its lack of efficacy against the Omicron variant and might weaken further. Nevertheless, growth in Eylea and Dupixent through further penetration in existing indications should maintain momentum. The approval of Libtayo for the lucrative indication of lung cancer is likely to drive the drug’s sales in the upcoming quarters. Regeneron has a deep and diversified pipeline, and approval of new drugs will further expand the portfolio. However, Regeneron relies on Eylea for the bulk of its sales, and the drug is likely to face stiff competition from the recently approved therapies. Shares have underperformed the industry in the past three months.
The stock is up 26.61% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2022. The consensus estimate has moved up as well.
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