Why Regeneron could be the top biotech investment in 2024
TD Cowen has named biotech company Regeneron (REGN) the best idea for 2024. TD Cowen Senior Biotech Equity Tyler Van Buren joins Yahoo Finance Live to break down the details of this call. Van Buren, who made the call, notes several factors that contributed to this decision.
Van Buren views Regeneron's psoriasis drug Dupixent as being "one of the largest drugs in biotech and pharmaceuticals” which could bring in revenue of $21 billion by 2027.
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Video Transcript
JOSH LIPTON: As we close out 2023, investors are reevaluating their portfolios for the year ahead. And Wall Street is chiming in releasing recommendations for the new year. TD Cowen naming biotech company Regeneron Pharmaceuticals, a best idea, calling it, quote, "One of the more fundamentally attractive companies in large cap biotech." Stock is up about 17% year to date, nearly in line with gains in the S&P 500.
Here with us now is the analyst making that call, Tyler Van Buren, senior biotech equity research analyst at TD Cowen. So Tyler, you're a fan on the name.
You're bullish. How come, Ty? What are the catalysts ahead that you think investors need to know about?
TYLER VAN BUREN: Sure. Yeah, so I definitely think Regeneron is one of the top fundamentally attractive large cap biotechs. The thesis is really resting on three prongs.
One is their Eylea franchise. So they're the market leader in the retinal disease space with almost a $10 billion global franchise. We believe it's going to be stable. There's been some concerns about that franchise over the last year or two, but they're launching their high-dose product called Eylea HD, which we think is going to go very well.
The second prong, which is really the biggest proponent of our thesis is Dupixent, also known as Humira 2.0, some are calling it. It could be one of the largest drugs in biotech and pharmaceuticals. It's going over $10 billion this year. We believe it could reach $21 billion by '27. And their partner Sanofi just said potentially $25 billion by the end of the decade, which is really driving earnings.
And then third is the pipeline, right? So we're going to get some data coming up at ASH this weekend. And we're going to get a number of readouts over the course of next year on top of earnings from Eylea and Dupixent, which are going to be critical.
