Regeneron Pharmaceuticals Inc. (NASDAQ: REGN), which has been a major player in the pharmaceutical industry, fell more than 15 percent this morning after disappointing Phase 3 trial results of itepekimab.
Itepekimab, a candidate drug for chronic obstructive lung disease (COPD), was developed by the biotech company with Sanofi in Paris.
REGN’s shares have fallen nearly 35% from their high-point for the year.
Regeneron stocks are on sale at a massive discount
Regeneron’s stock is a good investment, despite a difficult 2025 first half. Its solid fundamentals are also enticing.
The pharmaceutical giant reported revenue of $14.2 billion and net profit of $4.4 billion, which is both higher than the consensus.
REGN’s net profit margin was just below 27% in the last financial year. This shows its capability to earn substantial profits from its business.
The shares of Regeneron also appear to be attractive from a valuation perspective.
The price to earnings multiple is now less than 13 in the trailing period, which is well below both their historical median and that of the biotech industry.
The discount indicates that the markets are undervaluing the earnings potential of the company and its growth prospects.
REGN has exposure to COPD
Dupixent is Regeneron’s flagship product and has already been FDA approved for COPD treatment. This marks its 6th US indication after initial approval of atopic dermitis.
Even though REGN’s itepekimab was disappointing on Friday, the company still has a strong position in respiratory disorders.
The biotechnology firm also spent $256 million in the first month of this year to purchase 23andMe’s assets. This will expand their footprint in personalized medicine and genetic research.
The acquisition of this company could help the drug pipeline to grow and sustain long-term.
It is also worth noting that Regeneron’s stock pays out a current dividend yield of 0.72 %, making it a more appealing investment in 2025.
Analysts recommend REGN Shares for investment
Investors also should note that analysts continue to be bullish about Regeneron despite today’s setback in the shares of itepekimab.
Citi analysts upgraded REGN to “buy” recently, citing stabilising Fundamentals and Near-Term Catalysts including Product Developments such as fianlimab.
Cantor Fitzgerald analysts also reiterated on Friday that the biotech stocks are “overweight”
The investment bank acknowledged in a client note that Regeneron’s disappointing data at the late stage could be a hindrance for some time, but expressed its confidence about the long-term prospects of the company.
Cantor has set a price target of $695 for Regeneron Pharmaceuticals, which indicates a potential upside of more than 40% from the current level.
Overall, although the itepekimab trial results have caused short-term volatility in the Nasdaq-listed firm, its strong financials and diversified product range, as well as strategic initiatives, position it for sustainable growth going forward.
The current price of the stock, which represents a substantial discount, is a good entry point for those investors who are looking to invest in a biotech company that has a reputation for being innovative and resilient.
The post Regeneron Stock Crashs on COPD Data: Here’s Why I’m Buying REGN Today may be updated as new information unfolds.
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