Why Regeneron (REGN) Stock Is Trading Up Today

What Happened?

Shares of biotech company Regeneron (NASDAQ:REGN) jumped 3.3% in the morning session after the company reported strong second-quarter financial results that significantly surpassed analyst expectations. The pharmaceutical giant posted earnings per share of $12.89, which crushed the forecast of $8.50. Revenue also beat projections, totaling $3.68 billion against an expected $3.29 billion. This performance marked a notable rebound from the prior quarter. The growth stemmed from strong sales of key treatments, including its eye care therapy Eylea HD, cancer drug Libtayo, and immunology medicine Dupixent, which all recorded substantial sales increases.

After the initial pop the shares cooled down to $546.32, up 0.2% from previous close.

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What Is The Market Telling Us

Regeneron’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock dropped 19% on the news that the company announced mixed results from its Phase 3 trials for itepekimab, an experimental drug for Chronic Obstructive Pulmonary Disease (COPD). While one trial met its primary endpoint, the other missed, raising concerns about the drug's future and delaying its potential market entry. This setback, likely spooked investors and contributed to the significant decline.

Regeneron is down 23.6% since the beginning of the year, and at $546.32 per share, it is trading 54.5% below its 52-week high of $1,202 from August 2024. Investors who bought $1,000 worth of Regeneron’s shares 5 years ago would now be looking at an investment worth $846.77.

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