Why Regeneron Pharmaceuticals, Inc. Shares Jumped

A fresh joint development project and positive sales commentary from Regeneron's CEO sends its share price up by double-digits.

Jan 14, 2014 at 2:48PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Regeneron Pharmaceuticals (NASDAQ:REGN), a biopharmaceutical company developing therapies to treat serious medical conditions, jumped as much as 13% after the company's CEO announced initial sales projections for Eylea in the fourth quarter and following the announcement of a new treatment under development in partnership with Bayer (NASDAQOTH:BAYRY).

So what: According to comments from Regeneron CEO Len Schleifer at the JPMorgan Healthcare Conference, the company anticipates reporting $400 million in U.S. sales of Eylea, its wet age-related macular degeneration drug, in the fourth quarter. Furthermore, Schleiifer sees plenty of opportunity for future growth of the drug in U.S. and European markets. In addition to this news, after the closing bell yesterday Regeneron and Bayer announced the joint development of a new treatment option for wet-AMD, a PDGFR-beta antibody that Regeneron will have rights to in the U.S. and Bayer will control throughout the rest of the world. The pact includes a $25.5 million up-front payment to Regeneron, as well as the potential to earn $40 million in option and milestone payments.

Now what: Regeneron's Eylea is simply unstoppable. Not even the holidays seemed to slow sales down much. Obviously, sales can't move higher in an exponential fashion and longtime users of the drug will need fewer injections, but Eylea is still just touching the tip of the iceberg in terms of its sales potential, especially in overseas markets. I still, personally, have a difficult time dealing with Regeneron's forward P/E of 54, but its top-line growth and margin momentum could be enough to sustain its share price around $300.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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