Market Cap: $23 billion
Expected 5-year EPS Growth: 25%
Regeneron Pharmaceuticals (REGN) shares have simply exploded. The stock has doubled in the past 52 weeks alone, and since 2008, it has climbed from under $20 to its current price around $245. That has come courtesy of 44% EPS improvement annually during the past half-decade on sales growth north of 60%.
One big reason for the success: Regeneron’s eye drug Eylea. The drug already holds 20% of first-line intravitreal pharmacotherapy share among wet AMD patients after just 18 months — or, in other words, it’s already the second-most popular drug for a severe form of macular degeneration.
Of course, in biopharma, what’s coming up next matters almost as much as what you have. The most promising thing in Regeneron’s drug pipeline is dupilumab — a trial-stage asthma treatment it’s developing with Sanofi (SNY). The global asthma market is estimated to be worth $25 billion, so an eventual approval would be reason for REGN shareholders to cheer.
Regeneron had better hope that drug pans out, though, as it faces the same problem as KORS — one helluva high bar. Sure, Regeneron is supposed to posted 25% growth for the next five years … but that’s just more than half the rate it has been growing for the past five.