Regeneron Stock Plunges 35.6% in Six Months: Fold or Hold?

Eylea Sales and Competition - Eylea sales have been declining due to competition from Roche's Vabysmo, which has seen phenomenal uptake [3][12] - Regeneron developed Eylea HD to counter the decline, but it will take time to offset the rapid erosion in Eylea sales [2] - Biosimilar competition for Eylea is a significant concern, with Amgen's Pavblu being the fifth biosimilar approved for Eylea [18] Oncology Franchise - Regeneron is focusing on strengthening its oncology franchise, which includes Libtayo for various advanced cancers [5] - The European Commission approved odronextamab (Ordspono) for treating relapsed or refractory follicular lymphoma and diffuse large B-cell lymphoma [6] - However, the company faced setbacks with odronextamab and linvoseltamab in the US, receiving complete response letters from the FDA [7][8] - Phase II and II/III studies for fianlimab in combination with Libtayo for non-small cell lung cancer and melanoma are ongoing [9] Dupixent Performance - Dupixent has been a strong contributor to Regeneron's top line, with solid sales and consistent label expansion [13][14] - The FDA approved Dupixent for chronic obstructive pulmonary disease, and the European Commission expanded its label to treat eosinophilic esophagitis in children [14] Financial Performance and Valuation - Regeneron's shares have dropped 35.6% in the past six months, underperforming the industry and the S&P 500 Index [11] - The company's forward price/earnings ratio is 17.64, higher than the large-cap pharma industry's 15.90 [10] - The Zacks Consensus Estimate for 2024 earnings per share has risen 39 cents to $45.25 over the past 60 days [15] Market Sentiment and Future Prospects - Regeneron is bearing the brunt of investor sentiment due to Eylea's rapid sales decline and pipeline setbacks [18][19] - Despite near-term challenges, the company has solid long-term growth prospects, particularly with its oncology franchise and Dupixent [19]