Regeneron (NASDAQ:REGN) Lands a Big Quarter

Drug companies have had an excellent run of late, as healthcare takes on a whole new importance in the face of a new disease like COVID-19. Yet even as COVID-19 seized the world by the collective throat, there were other diseases needing addressing, and medications required to do so. Regeneron (NASDAQ:REGN) recently turned in its quarterly figures, and revealed there was still brisk business to be done in fighting diseases that aren't COVID.

Eyes, Skin, and More Fuel Big Gains at Regeneron

The immediate win came from the earnings report, which revealed Regeneron brought in a hefty $9.53 per share. That compares nicely against the expected earnings per share of $8.39 that came in from Refinitiv. It's also up substantially against last year's figures, beating those totals by 27.07%.

Revenue did manage to beat estimates, but it was a very close win, as the company posted $2.423 billion in revenue against an expected $2.42 billion. Despite the closeness of the win, it does compare wonderfully to the same time last year, as the latest numbers are 11.66% higher than they were this time last year.

Supporting Regeneron's impressive sales figures were sales of Dupixient, its eczema drug, which brought in $1.17 billion as compared to last year's $751.5 million. Additionally, the macular degeneration drug Eylea—whose sales took a beating in the second quarter thanks to patients being unwilling or even unable to come into doctors' offices to get the drug—recovered nicely, rising 10% to hit $1.34 billion for the fourth quarter.

Analysts Indicating a Big Upswing May Arrive

The broader analyst pool, meanwhile, is sticking with Regeneron in every way that matters, or so our latest research details. The company has had a consensus rating of “buy” for the last six months, and the ratios that make it up have only improved toward bullishness ever since.

Six months ago, the company had 11 “hold” ratings to its credit, along with 15 “buy” and one “strong buy.” Three months ago, that shifted to 10 “hold”, 13 “buy”, and one “strong buy.” A month ago, that improved slightly to nine “hold”, 13 “buy” and one “strong buy.” Today, meanwhile, the rating is its most bullish yet with seven “hold”, 17 “buy” and one “strong buy.”

The price target, oddly, has been in decline for the last couple of months. Six months ago, it came in at $592.78, and three months ago, it went up to $628.80. A month ago, however, it slipped slightly to $625.48, and today, it's lower still at $619.32. Given that the company is currently trading at a share price of $501.44, however, it does seem to suggest an opportunity afoot to get in before a major upswing begins.

Firing On All Cylinders Once Again

The good news for Regeneron right now is two-fold. One, the biggest COVID-19 restrictions are long since gone, and two, they're not likely to return. Sure, we'll likely see the more restrictive states start to choke bars and restaurants again before too much longer, but the notion that hospitals will be shut down for everything but COVID-19 related care is unlikely at best. This means that the biggest potential restraints on Regeneron's cash flow aren't likely to come back either, and the company can run at its fullest level. Granted, there is likely to be a bit of decline from the current levels—pent-up demand factored in at some point, especially when people's access to things like macular degeneration and eczema drugs were so limited—but with demand allowed to normalize, it will become more regular and predictable. It should also help provide a worthwhile working base for the company to operate from and prevent a lot of downward slide in share prices.

Even if such restrictions should manage to come back, it's also worth noting that Regeneron has a stake in fighting COVID as well. Its recent work in monoclonal antibody treatments—the casirivimab and imdevimab lines, as they're known—have been working well, at last report, so it's likely to see some gains from its lineup therein. That kind of diversification is likely to work in the company's favor.

For anyone considering buying in right now, the price tag per share is certainly substantial, but look at the price targets coming in from the analyst pool. With analysts expecting an average of around $619, it really does suggest gains are likely to come. Those who want to pick up shares in a pharmaceutical firm that's already weathered the worst of a pandemic and is making a decided comeback may want to buy in on the Regeneron recovery narrative.