Regeneron Pharmaceuticals (REGN) Wins Pasatru Approval, Is The Upside Already Priced In?
Regeneron Pharmaceuticals (REGN) stock moved after the U.S. Food and Drug Administration approved Pasatru for adults with fibrodysplasia ossificans progressiva. This new rare disease therapy is supported by late stage OPTIMA trial data.
See our latest analysis for Regeneron Pharmaceuticals.
The Pasatru approval comes after a strong run in Regeneron Pharmaceuticals’ stock, with a 30.55% 90 day share price return and a 42.21% 1 year total shareholder return, suggesting recent momentum after more modest multi year results.
If Pasatru’s rare disease progress has your attention, this is a good moment to look across healthcare AI as well through the 41 healthcare AI stocks.
After a 30.55% 90 day surge and a 42.21% 1 year total return, Regeneron Pharmaceuticals now sits near US$834.04. Does the current set of risks and new Pasatru upside still lean in favor of buyers or not?
Most Popular Narrative: 10% Overvalued
Regeneron Pharmaceuticals last closed at $834.04, slightly above the most followed fair value estimate of $833.31 that is based on detailed long term forecasts.
Regeneron's broad and advancing pipeline including recent or upcoming pivotal data in immunology, oncology (notably Lynozyfic and odronextamab), genetic medicines, and obesity positions the company to benefit from demographic driven increases in demand for advanced therapies and from the rise in personalized and precision medicine, supporting future revenue growth and pipeline driven earnings upside.
Curious what kind of revenue path and profit margins sit behind that fair value line? The narrative leans on detailed growth forecasts and a future earnings multiple that is carefully benchmarked against other US biotech stocks.
Result: Fair Value of $833.31 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the fair value story for Regeneron Pharmaceuticals could shift if EYLEA and EYLEA HD face tougher pricing and biosimilar pressure, or if high R&D spend fails to translate into commercially successful late stage assets.
Find out about the key risks to this Regeneron Pharmaceuticals narrative.
Another View On Regeneron Pharmaceuticals’ Valuation
The analyst fair value narrative pegs Regeneron Pharmaceuticals as about 10% overvalued at $833.31, yet Simply Wall St’s DCF model paints a different picture. On that approach, REGN at $834.04 trades well below an estimated future cash flow value of $2,484.53, which implies a wide valuation gap. Which story do you think better fits the risks and pipeline you see?
For a closer look at how this cash flow view is built, including the key assumptions that drive it, take a few minutes to review the Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Regeneron Pharmaceuticals for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If this mix of optimism and caution on Regeneron Pharmaceuticals feels familiar, do not wait around for consensus. Review the data and key business drivers yourself, then see how they line up with the 2 key rewards.
Looking for more investment ideas beyond Regeneron Pharmaceuticals?
If you are serious about finding your next opportunity, do not stop at Regeneron Pharmaceuticals. Use the Simply Wall Street Screener to compare different stocks side by side.
- Spot potential bargains early by scanning companies that look mispriced on fundamentals through the 48 high quality undervalued stocks.
- Build a steadier core to your portfolio by focusing on companies with stronger finances using the solid balance sheet and fundamentals stocks screener (50 results).
- Hunt for future standouts before they are widely followed by checking the screener containing 19 high quality undiscovered gems.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com