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REGENERON

ISSUE 1 1/22/13

+ REGEN-Nasdaq
Market capitalization 16.4B Company value 16.6B Revenues 1.1B Net income 226.4M Employees 1700

PER SHARE
Value (MRQ) $8.35 Earning $1.94 Revenue $10.22 Dividend $0

DRUGS/ TECHNOLOGIES
Currently in the market
Elyea (aflibercept) injection, Arcalyst (rilonacept) and Zaltrap (zivaflibercept)

MRQ- most recent qaurter

Pipeline Phase III

SarilumabRheumatoid Arthritis REGEN727- LDL cholesterol reduction REGN475Osteoarthritis REGN668Eosinophilic Asthma Atopic Dermatitis REGN421 and REGN910Advanced malignancies, Four undisclosed drugs

Phase II

Phase I

Technologies
Velocigene Velocimouse

Will Regeneron continue its upward rise?

Increasing market size- In 2012 bring 700-750 million in sales. This number has been revised upward in 2013 and now it is predicted to fetch 1.2 to 1.3 billion in sales (Reuters). This spectacular rise in sales can be attributed to a number of factors including a rapidly expanding market and competitive pricing. Elyea treats age-related macular degeneration and the National Eye Institute estimates that an additional 1.5 macular degeneration by 2030. This growing market size together with Elyeas competitive pricing and less frequent administration only adds to its potential. In addition, the company has two other products in the market, a robust pipeline and collaboration with many big pharma companies, which will help Regenerons growth prospects. Regenerons drug Elyea was forecasted to million people (US figures) will suffer from

Focal period for Regeneron

Its climb has been admirable. Its share value has risen more than 200% in 2012 as a result of sales from their drug Eylea that treats Macular degeneration.

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Regeneron is expanding geographically, joint partnership with Bayer for selling Elyea was approved by Australia in 2012

Comparing performance to its competitors and big Biotech/ Pharma players.

Although Regenerons first commercial drug was Arcalyst, Elyea is turning out to be the blockbuster that every company aims to develop. Its major competitor is Roches Lucentis. Elyeas growth in sales has been better than the slightly more expensive Lucentis. Although Regeneron lost the patent battle to Roche in the UK, Roche announced that Lucentis lost 36% of its market share. In addition, it has teamed up with Bayer Healthcare to expand into Australia, Japan, China and Europe. Elyea is also being tested its ability to treat additional conditions, which if approved will bring additional millions of dollars or more in revenue. The biggest threat to Elyea is posed by Avastin from Genentech. The much cheaper Avastin accounts for about half the macular degeneration market. To combat this Regeneron has worked hard to convince the medical community that Elyeas efficacy and less frequent dosage justifies its higher prices. Their claim may already be bearing fruit as Elyeas sales are surpassing all forecasts.

What part of their cost is for R&D? R&D expenses account for approximately 68% of the total operating costs. This reflects positively on the companys commitment to producing a first grade product and preventing SG&A costs to dominate.

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Stock- long term BULLISH Stock- short term BEARISH

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Zaltrap and drugs in the pipeline
Robust pipeline that contains more than 12 drugs
The latest commercial drug by Regeneron reach 260 million euros by the year 2015. in partnership with Sanofi is Zaltrap which treats colorectal cancer. The initial reception has been a disappointment. After an op-ed by Sloan Kettering physicians complaining about the high prices in New York Times, they were forced to cut its price by half. It is unlikely to turn out to be a blockbuster like Elyea and its future in the US doesnt look very promising. However, it had received the backing of the EU in Europe and reported 7 million euros in sales in Q3 of 2012 and sales are forecasted to Regardless of the success of Zaltrap, Regeneron has a pipeline that holds great potential. It currently has two drugs in phase III that hold great potential potential, especially REGEN727 ,an antiPCSK9, which has been shown to lower bad cholesterol by 72% more than the blockbuster Lipitor. In addition, it is reported to have very few side effects when compared to the competitor. Other major Pharma companies are developing

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similar drugs but they are mostly in Phase II and Regeneron will launch before their major competitors, giving it a first-mover advantage. In addition the anti-PCSK9 market is huge, ranging from 10-25 billion USD, ensuring that potential sales for this drug will bring billions in sales. Further strengthening their future prospects, Elyea has been shown to treat additional ailments such as central retinal vein occlusion, diabetic macular edema and branch retinal vein occlusion, which will only add to the sales generated by this drug. Finally, drugs to treat cancer and other inflammatory diseases are in Phase II and Phase I testing. Regeneron is very wellplaced as it is targeting diseases of the future that ail older patients as well as chronic diseases which require constant treatment. - sodales.

Company financials and future forecasts

As of now Regeneron is very placed and is on the path to becoming profitable and increase the sale of its drugs worldwide. The forecast for its drug sales, share value and finances look bright.

Regeneron stock NASDAQ official open price -$168 Regeneron stock NASDAQ official close price- $175.07 Community sentiment- BULLISH

Summary
Regeneron share prices grew by more than 224% in 2012 alone ELYEA is expected to achieve blockbuster status in 2013 ( sales of 1-1.2 B) ELYEA is being tested for other ailments which is predicted to drive up its sales even further

REGN727 an anti-PCSK9 in the pipeline is shown to be 72% better than Lipitor at reducing cholesterol and is forecasted to bring in atleast a billion dollars in the coming years.