Regeneron Pharmaceuticals Inc (NASDAQ: REGN) crashed more than 15% this morning on disappointing data from Phase 3 trials of its experimental drug itepekimab.
Itepekimab is a drug candidate for chronic obstructive pulmonary disease (COPD) that the biotech firm developed with Paris headquartered Sanofi.
Including today’s plummet, REGN shares are down nearly 35% versus their year-to-date high.
Regeneron stock is going for a huge discount
Despite an unusually difficult first half of 2025, there’s ample reason, including solid fundamentals, to buy Regeneron stock at current levels.
In 2024, the pharmaceutical behemoth reported $14.2 billion in revenue on $4.4 billion worth of net income, both ahead of consensus.
REGN’s net profit margin stood at just under 27% last year, underscoring its ability to generate substantial earnings from its operations.
From a valuation standpoint, Regeneron shares appear attractive as well.
They’re now going for a price-to-earnings multiple of less than 13 (trailing), well below their historical average and biotech sector median of about 27.
This discount suggests that markets may be undervaluing the company’s earnings potential and growth prospects at the time of writing.
REGN still has exposure to the COPD market
While itepekimab late-stage trials miss the mark, Regeneron flagship product, Dupixent, already has FDA approval for the treatment of COPD, marking its sixth US indication since initial approval for atopic dermatitis.
This suggests that REGN remains well-positioned in the respiratory conditions market even though its itepekimab disappointed on Friday.
Additionally, the biotechnology company spent $256 million earlier this month to buy 23andMe assets, which expand its footprint in genetic research and personalized medicine.
This said acquisition could bolster the company’s drug development pipeline and support long-term growth.
Note that Regeneron stock currently pays a dividend yield of 0.72% as well, which makes it somewhat more attractive to own in 2025.
How analysts recommend playing REGN shares
Investors should also note that analysts remain bullish on Regeneron shares despite the itepekimab setback today.
Citi analysts recently upgraded REGN stock to “buy”, citing stabilising fundamentals and near-term catalysts, including product developments, for instance, fianlimab.
On Friday, analysts at Cantor Fitzgerald also reiterated the biotech stock at “overweight”.
In a note to clients, the investment bank agreed that the disappointing late-stage data could hurt Regeneron for a while but expressed confidence in the firm’s long-term trajectory.
Cantor currently has a $695 price target on Regeneron Pharmaceuticals that indicates potential for a more than 40% upside from current levels.
All in all, while the trial results for itepekimab have introduced short-term volatility, the Nasdaq listed firm’s strong financials, diversified product portfolio, and strategic initiatives position it well for sustained growth moving forward.
Therefore, the company’s current stock price, reflecting a significant discount, offers a potential entry point for investors seeking exposure to a resilient and innovative biotech name.
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