Our worst performer was Regeneron Pharmaceuticals (NASDAQ:REGN), a biotechnology company that makes treatments for eye and heart diseases, cancer and inflammation. Regeneron cut 108 basis points from the Fund's return, as its stock plunged 23.8% from $410.62 to $313.00. (For this report, we will quote total return to the portfolio, which includes price change and dividends.) Investors feared the company's blockbuster drug Eyelea would lose market share after the FDA prioritized approval for a competing drug developed by Novartis. Higher contract manufacturing and R&D costs, as well as lower reimbursements from Sanofi, Regeneron's development partner, also pushed the stock lower. The company's own pipeline progress is encouraging, however. The FDA approved two of Regeneron's medications--Dupixent, for adolescent atopic dermatitis, and Praluent, which reduces the chance of heart attack and stroke in at-risk adult patients.
From Jerome Dodson (Trades, Portfolio)'s second-quarter 2019 Endeavor Fund shareholder letter.
This article first appeared on GuruFocus.
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