The Battle between Praluent and Repatha



Praluent’s revenue

In 4Q15, Sanofi earned $7 million from Praluent. The drug received approval in the US in July 2015 and earned $11 million in fiscal 2015. Regeneron Pharmaceuticals (REGN) co-markets the drug with Sanofi-Aventis, and Sanofi records the product sales for the drug and shares the profits or losses from commercialization with Regeneron.

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Praluent versus Repatha: a battle for market share

Amgen’s (AMGN) Repatha, a proprotein convertase subtilisin kexin type 9 inhibitor, and Praluent are the same class of drugs that are indicated for lowering high levels of low-density lipoprotein. Without much difference in the price—Repatha costs $14,100 and Praluent $14,600 per year—the battle for their market share is on.

UnitedHealth group added Praluent for preferred access across its formularies, whereas CVS Health Corporation (CVS) choose Repatha for preferred access under its Caremark commercial formularies. Thus, there is head-to-head competition between these two drugs.

Praluent and Repatha are priced higher than Pfizer’s (PFE) Lipitor, AstraZeneca’s (AZN) Crestor, and Merck’s (MRK) Mevacor on account of better efficacy and safety profile.

The latest from Praluent

National Institute for Health and Care Excellence decides which drugs should be covered by National Health Service in the United Kingdom, and Repatha received approval in the Europe in July 2015 after Praluent was approved in the US in September 2015.

To get exposure to Regeneron Pharmaceuticals and control excessive company-specific risks, investors can invest in the S&P 500 SPDR ETF (SPY). Regeneron accounts for 0.17% of SPY’s total holdings.


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