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Understanding Regeneron’s Share Price Movement after Its 4Q15 Results

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Nov. 20 2020, Updated 1:58 p.m. ET

Regeneron’s performance after previous quarterly earnings

Regeneron Pharmaceuticals (REGN) reported earnings for 4Q15 and fiscal 2015 on February 9, 2016. It earned $1.1 billion in 4Q15, which translates to a 37% YoY (year-over-year) sales growth. The company’s EPS (earnings per share) stood at ~$2.8 during 4Q15, which was below Wall Street’s expectation. Its revenue also missed by 6.7%, and a surprising 16.1% decline in earnings resulted in a 6.3% drop in the share price on the same day.

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Share price movement

That said, we saw a sudden spike in REGN’s stock price on April 1, 2016, when it soared from the earlier closing of $360 to $405 in a single day. (For more on the company’s news-based share price performance, check out “Regeneron’s Stock Reacts to Dupilumab Phase 3 Trials.”)

Perhaps investors were excited by the positive top-line results from Dupilumab. According to Wells Fargo, Dupilumab represents an arsenal in Regeneron’s pipeline and has the potential to earn more than $5 billion in peak sales. On April 1, 2016, Regeneron announced positive Phase 3 data for the drug in moderate-to-severe atopic dermatitis patients. Notably, the company is developing the drug in collaboration with Sanofi (SNY).

Eylea versus Lucentis and Avastin

Regeneron’s major drug, Eylea, faces competition from Lucentis and Avastin, which are developed by Roche Holding (RHHBY) and Genentech. Novartis’s (NVS) Visudyne and Pfizer’s (PFE) Macugen are the other two competitors for Eylea. (For more on Regeneron’s key drug Eylea, check out “Eylea: Regeneron’s Blockbuster Therapy Focuses on Eye Segment” and “Eylea’s Net Sales in the US Jumped in 4Q15, but Was It High Enough?“)

To diversify the risk of investing directly in the equity of Regeneron Pharmaceuticals, investors can look for options such as the PowerShares QQQ (QQQ). QQQ has 0.84% of its total holdings in Regeneron.

Now let’s have a look at the company’s upcoming expectations for 1Q16.

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