These biotech companies are expected to thrive due to their innovative strategies.
In recent years, Moderna (MRNA 3.39%) and Regeneron Pharmaceuticals (REGN -0.56%) have faced specific challenges that have negatively impacted their stock values. Moderna’s stock has plummeted by 75%, while Regeneron has seen a 32% decline.
Should you steer clear of Moderna and Regeneron? I don’t think so. Despite the challenges they’ve encountered, both companies may be solid long-term investments for the next decade. Here’s why.
1. Moderna
Moderna experienced significant success with its coronavirus vaccine, leading to substantial profits. Although the pandemic’s intensity has diminished, the biotech firm is likely to continue benefiting from its vaccine sales for a while longer. This year, it anticipates generating revenue between $1.5 billion and $2.2 billion, mainly from coronavirus vaccine sales.
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While COVID-19 may no longer be a global health emergency, the virus persists, and especially vulnerable populations will continue seeking vaccinations. Moderna is likely to remain a leader in the market.
Additionally, Moderna has enhanced its pipeline over the last three years, setting the stage for new approvals. The company recently launched mResvia, a vaccine for respiratory syncytial virus (RSV), and has other promising candidates in advanced trials, including a vaccine for cytomegalovirus (CMV).
2. Regeneron Pharmaceuticals
Regeneron’s recent challenges likely stemmed from the 2022 approval of Vabysmo, a competing treatment for wet age-related macular degeneration, alongside its existing product, Eylea. The company faced competitive pressures from biosimilars for Eylea as well.
Fortunately, Regeneron is gradually overcoming these hurdles. Its newly developed high-dose formulation of Eylea offers a more convenient dosing schedule, improving its competitive standing against Vabysmo, which is known for its easier regimen.
In the second quarter, Regeneron’s revenue rose by 4% year over year to $3.68 billion. While this growth isn’t extraordinary, it’s robust given the competition Eylea faces. Meanwhile, Dupixent, Regeneron’s primary growth driver, continues to show strong performance.
Regeneron has received new approvals and expects more in the near future. Its cancer treatment Lynozyfic gained approval this year, and positive phase 3 results were reported for cemdisiran, aimed at treating myasthenia gravis. A regulatory application for this treatment is expected next year.
The pipeline includes various products, particularly in the fast-growing weight management sector. Regeneron is set to continue expanding its pipeline while leveraging Dupixent to achieve solid financial results. Thus, the stock remains a worthy long-term investment choice.
Prosper Junior Bakiny does not hold any shares in the stocks mentioned. The Motley Fool has positions in and recommends Merck and Regeneron Pharmaceuticals. The Motley Fool also recommends Moderna and Roche Holding AG. The Motley Fool has a disclosure policy.
