Biogen (BIIB)
Biogen stands out as a leader in the biopharmaceutical industry with its focus on discovering, developing, and delivering innovative therapies for complex and serious diseases. The company has a diversified portfolio that includes treatments for multiple sclerosis (MS) and spinal muscular atrophy (SMA). Notably, Biogen introduced the first approved treatment for SMA, marking a significant milestone in the medical community. This broad portfolio positions Biogen as a resilient player in the biotech sector, making it a compelling investment opportunity.
Biogen's commitment to advancing its pipeline in specialized fields like neurology, neuropsychiatry, and immunology is noteworthy. The company is also co-developing treatments for Alzheimer's disease, a condition that has long eluded effective therapy. Biogen's robust internal R&D programs and strategic external collaborations further strengthen its position as a frontrunner in biotech innovation.
Recent developments indicate that Biogen is not afraid to make tough decisions for long-term gains. For instance, the company recently amended the Phase 2b LUMA study for BIIB122 to include a broader patient base, targeting both early-stage Parkinson’s disease and those with a specific genetic mutation. While they have paused or terminated some projects like BIIB093 and BIIB131 due to operational challenges or strategic considerations, this adaptability could be seen as a strength. It shows that the company is focused on prioritizing its resources effectively.
Despite a recent decrease in total revenue, Biogen's financials should be viewed in the context of its ongoing investments in R&D and strategic shifts. The company recorded close-out costs of approximately $13.2 million for BIIB093, which is a part of its broader financial strategy. Investors should consider the company's long-term potential and its ability to bounce back, given its history and diverse portfolio.
Biogen is also making strides in the biosimilars market, commercializing advanced biologics like BENEPALI, IMRALDI, and FLIXABI in Europe. The company is developing potential new biosimilar products, including BIIB800 and SB15, which could offer additional revenue streams in the future. This diversification into biosimilars adds another layer of resilience to Biogen's business model, making it a well-rounded investment choice in the biotech sector.
In summary, Biogen's innovative portfolio, cutting-edge R&D, strategic adaptability, financial resilience, and diversification into biosimilars make it one of the best biotech stocks to buy now.
Regeneron (REGN)
Regeneron Pharmaceuticals (REGN) has recently gained FDA approval for an 8-milligram dose of its vision loss drug, Eylea HD, a significant increase from the prior 2-milligram dose. This approval came earlier than anticipated, signaling a positive relationship with regulatory bodies. Eylea HD is designed to treat wet age-related macular degeneration and other vision-related conditions, and this new approval strengthens Regeneron's position in the market.
Financially, Eylea is a cornerstone for Regeneron, accounting for over half of the company's sales in 2022. The high-dose version is priced at $2,625 per vial, and projections for its sales are optimistic. Analyst Christopher Raymond from Piper Sandler anticipates Eylea sales to reach $6.2 billion in 2023, $6.75 billion in 2024, and $6.85 billion in 2025, indicating a strong revenue stream for the company.
The stock market has responded favorably to this news. REGN stock was trading at $821.26, marking a 1% increase in premarket trading following the FDA approval. Analysts are bullish on the stock; Hartaj Singh from Oppenheimer raised his target price to $1,050, indicating a potential 29% gain, while Brian Abrahams from RBC Capital Markets increased his target to $830. The stock is currently trading at a premium, at 18.9 times the expected earnings for the next 12 months, compared to its five-year average of 15.3 times.
In terms of competition, Eylea HD is set to go head-to-head with Novartis' Vabysmo. Despite a higher per-vial price for Eylea HD ($2,625) compared to Vabysmo ($2,190), the annual costs are closely aligned, making Eylea a competitive offering. This is particularly important as Eylea will soon face competition from lower-priced biosimilars, making the timing of the high-dose approval quite strategic.
In conclusion, Regeneron's recent FDA approval for a higher dose of Eylea HD, its strong financial outlook, and positive sentiments from Wall Street analysts make it a compelling biotech stock for investment. The company is well-positioned to maintain or even extend its market share in treatments for eye diseases, especially with the introduction of high-dose Eylea. This, combined with its competitive pricing and promising future outlook, positions Regeneron as a top biotech stock to consider.
