Regeneron (NASDAQ:REGN) may not be staging a major rally this morning, but it is still a critical stock to watch. Why? Well, the biotechnology company is responsible for a shift in investor sentiment. After its antibody drug for the novel coronavirus received emergency-use authorization from the U.S. Food and Drug Administration, things started to look up. So what do you need to know about the treatment? And what does that mean for REGN stock?
Well, start with the very basics of the story. Regeneron has long been developing a treatment for Covid-19. In fact, President Donald Trump received that treatment while he was hospitalized for the coronavirus. After Trump recovered and started touting the drug, Regeneron filed for an EUA with the FDA. On Monday, after a few weeks of waiting, that approval came through.
But what else do you need to know about the treatment? Go in depth with InvestorPlace below.
How REGN-COV2 Works
- Regeneron calls its coronavirus treatment REGN-COV2.
- Importantly, REGN-COV2 is a monoclonal antibody treatment.
- What are monoclonal antibodies? Well, these are laboratory-produced molecules that essentially substitute for organic antibodies in the body.
- Generally, they enhance or mimic the way the human immune system fights a virus.
- Right now, scientists believe that REGN-COV2 is mimicking the standard immune system to fight off the novel coronavirus.
- There are many different ways that monoclonal antibody drugs work.
- However, the main focus of REGN-COV2 is in blocking the “spikes” that form the “crown” of the novel coronavirus. This crown is what helps the virus attach to human cells and replicate.
- Also importantly, Regeneron is marketing something called a monoclonal antibody cocktail.
- This means that there is more than one lab-produced molecule in REGN-COV2.
- Specifically, the treatment involves casirivimab and imdevimab.
- Why does this matter? Well, scientists hope that by combining two antibodies, REGN-COV2 will remain effective against the coronavirus. There is some fear that as the virus evolves, it will either mutate or become resistant to existing treatments. The cocktail nature of the drug could help protect against this.
What Does Emergency Approval Mean for REGN Stock?
Clearly, it is a big deal that Regeneron received this emergency-use authorization. But what does it really mean? And how will this impact REGN stock?
Right now, a lot is up in the air. The most important part of this announcement is that now, doctors will have more medications to try as they treat patients with the coronavirus. Until today, REGN-COV2 was only available through a special FDA program. Now, it will be available alongside a similar monoclonal antibody treatment from Eli Lilly (NYSE:LLY).
Because Trump has been such a supporter of the drug, his endorsement could boost investor interest. However, that is not necessarily a sure thing. Regeneron will still need to wait for full FDA approval, and will be continuing to test its treatment. At this point, Gilead Sciences (NASDAQ:GILD) is the first and only drugmaker to receive full approval for a coronavirus treatment.
For right now, investors are rewarding REGN stock. Shares are up 1.14% in intraday trading.
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.