10 Best Stocks of the Bull Market #1: Regeneron (REGN)
Regeneron (REGN) is a rarity in the pharmaceutical space in that it is on the forefront of new drugs under patent protection with “blockbuster” potential — that is, more than $1 billion in annual sales.
The spark that pushed REGN stock to stratospheric heights was the 2012 approval of Eylea — a medication to prevent “wet” age-related macular degeneration (AMD). Macular degeneration affects some 15 million people in America alone, and wet AMD, while only constituting about 10% to 15% of cases, is highly likely to lead to blindness. Thus, this drug has a very high ceiling thanks to wet AMD’s severity.
The company had mildly outperformed prior to that 2012 approval, but really took off in 2011 leading up to the news and continued to run afterwards.
A steady flow of other favorable drug news, including approvals and research trials, has helped provide extra pop that has made REGN stock the envy of Wall Street for the last five years.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at email@example.com or follow him on Twitter via @JeffReevesIP.