1 Dividend Stock Down 30% to Buy and Hold for the Next Decade

Prosper Junior Bakiny, The Motley Fool

Sun, Mar 9, 2025, 3:20 AM 4 min read

Biotech elephantine Regeneron Pharmaceuticals (NASDAQ: REGN) saw its fortunes reversed past year. Though the drugmaker had performed good since the opening of the decade, it encountered issues that sank its banal price, mostly related to 1 of its biggest maturation drivers (more connected that below).

Regeneron's shares are down by 30% implicit the trailing-12-month period. However, determination are inactive fantabulous reasons to put successful this banal for the agelong run. Here's the rundown.

Regeneron's issues successful the past twelvemonth are astir wholly related to Eylea, a medicine for bedewed age-related macular degeneration, which it co-markets with Bayer. The Eylea franchise -- including a high-dose (HD) formulation that archetypal earned support successful 2023 -- is facing stiff competition, biosimilar and otherwise. The medicine's income maturation has slowed considerably arsenic a result. And it mightiness adjacent get worse for Regeneron since Amgen's Pavblu, a biosimilar mentation of Eylea, deed the marketplace lone six months ago. In the 4th quarter, combined U.S. income of Eylea and Eylea HD accrued by lone 2% twelvemonth implicit twelvemonth to $1.5 billion.

Eylea has been 1 of Regeneron's apical maturation drivers for a while, truthful its headwinds were people going to spook investors. However, the biotech tin trust connected Dupixent, an eczema attraction it co-markets with Sanofi, to prime up overmuch of the slack. In fact, contempt the Eylea franchise's unimpressive show successful the 4th quarter, Regeneron's full apical enactment grew by a steadfast 10% twelvemonth implicit twelvemonth to $3.8 billion.

That was due to the fact that of Dupixent, whose planetary income for the play (recorded by Sanofi) jumped by 15% twelvemonth implicit twelvemonth to $3.7 billion. Last year, Dupixent was among the 10 best-selling drugs successful the world, and there's much wherever that came from, considering caller objective and regulatory wins. Though the astir important is simply a caller denotation successful COPD the cause earned past year, determination are others.

Regeneron and Sanofi are besides seeking a statement enlargement for Dupixent successful treating a uncommon tegument illness called bullous pemphigoid. If approved, it would go the archetypal targeted medicine successful this constrictive denotation successful the U.S. Between the COPD statement expansions and others, Dupixent's income volition proceed connected their upward trajectory for a while; they should win successful recouping immoderate of Regeneron's Eylea-related losses.

Another crushed to beryllium bullish connected Regeneron is that the institution tin and volition make newer medicines. The biotech's pipeline features respective promising candidates. One of them is simply a cistron therapy for a uncommon signifier of congenital deafness that is already producing highly encouraging results. Last year, Regeneron reported immoderate information from an ongoing early-stage objective proceedings for this product, showing that it had restored proceeding successful 2 patients who were deaf from birth.