Regeneron Pharmaceuticals (NASDAQ:REGN) is best known for Eylea, which is used to treat wet AMD (age-related macular degeneration) and some other eye diseases with great success. After hearing the Q1 2018 Regeneron conference call and seeing the stock price at the low end of its 52-week range, I added REGN to my buy list. But then something came up to make me think again - the question of future competition.
This article is focused exclusively on Eylea competition in the 2019 and beyond time frame. If you have not already read a background article on Regeneron, I can recommend The Value Investor's Regeneron: Initiating at These Levels.
Eylea Competition Overview
For years Eylea's drug competition for treating wet macular degeneration has mainly been Lucentis and Avastin. Laser therapy is also an alternative. It is notable that Avastin is used off-label and is much less expensive. All three drugs are in the class of VEGF inhibitors. One could simplify the argument by saying that, given how well Eylea has done competing against those two alternatives, worrying about new competition is a bit dramatic. Since new competition could be the difference between Regeneron being undervalued or overvalued, I think surveying it is worth some effort.
