It looks like Regeneron (NASDAQ:REGN) is really leaning into that influencer marketing trend. Just days after receiving an experimental treatment from the company, President Donald Trump is singing its praises. Now, investors — and perhaps the U.S. Food and Drug Administration — want to get on board that train. REGN stock is popping Thursday as a result.
So what exactly is going on? Well, it all started when Trump tested positive for the novel coronavirus. He ended up at Walter Reed Medical Center over the weekend, where he received a variety of experimental treatments. Trump took an experimental antibody treatment from Regeneron, an antiviral drug from Gilead (NASDAQ:GILD) and the common steroid dexamethasone. All are currently in some sort of clinical study for the coronavirus.
Trump is now playing favorites, and Regeneron does not seem to mind at all.
Last night, in a pre-debate press conference, Trump credited the antibody treatment from Regeneron with his health. He made many big promises, including that Regeneron would soon receive emergency-use authorization and that the federal government would make the treatment free for everyone who needs it. Talk about an endorsement!
Regeneron is not missing a beat. This morning, the pharmaceutical company announced it had applied for EUA with the FDA. Echoing Trump, the company also said that if approved, its REGN-COV2 would be available at no cost across the U.S. REGN stock is rallying on the news.
Are you still following? Just as a primer, Regeneron is one of the leaders in the race to develop antibody treatments for the coronavirus. These treatments use synthetic versions of the antibodies found in the coronavirus, and essentially, stop it from infecting patients.
REGN Stock Pops on FDA Updates
There are a few more things for investors to note here. The first is that Regeneron does face some competition. Just yesterday, rival Eli Lilly (NYSE:LLY) applied for its own EUA. That company has a single-antibody treatment, as well as a combination therapy that uses two different antibodies. Trump also acknowledged Eli Lilly last night, promising the same outcomes for its products.
Obviously, it helps that Trump has actually taken — and appears to have benefited — from the Regeneron drug. But if Eli Lilly can prove to the FDA that its combination therapy is more effective, it has a real chance of picking up market share. Either way, you should know Regeneron is not alone in this race.
The other thing to note is that controversy is abundant. Trump has called REGN-COV2 a “cure” for the coronavirus, prompting backlash. Public sentiment on Regeneron could very easily shift depending on what happens with the FDA. As with anything election-related, keep your eyes open for updates.
For right now, REGN stock looks better than ever.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.