Industry Comparison: Evaluating Regeneron Pharmaceuticals Against Competitors In Biotechnology Industry

In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Regeneron Pharmaceuticals REGN alongside its primary competitors in the Biotechnology industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to investors and shed light on company's performance within the industry.

Regeneron Pharmaceuticals Background

Regeneron Pharmaceuticals discovers, develops, and commercializes products that fight eye disease, cardiovascular disease, cancer, and inflammation. The company has several marketed products, including Eylea, approved for wet age-related macular degeneration and other eye diseases; Praluent for LDL cholesterol lowering; Dupixent in immunology; Libtayo in oncology; and Kevzara in rheumatoid arthritis. Regeneron is also developing monoclonal and bispecific antibodies with Sanofi, other collaborators, and independently, and has earlier-stage partnerships that bring new technology to the pipeline, including RNAi (Alnylam) and CRISPR-based gene editing (Intellia).

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Regeneron Pharmaceuticals Inc 25.97 3.83 7.83 4.56% $1.28 $2.92 0.58%
Amgen Inc 22.21 23.87 5.29 11.05% $3.05 $5.08 19.84%
Vertex Pharmaceuticals Inc 28.95 5.91 10.62 5.68% $1.22 $2.15 9.34%
Biogen Inc 27.02 2.07 3.26 2.62% $0.68 $1.75 -7.0%
BioNTech SE 21.92 1 5.33 2.28% $0.46 $1.3 -65.43%
Genmab A/S 30.28 4.09 8 2.04% $0.93 $4.55 -8.94%
Biomarin Pharmaceutical Inc 78.61 3.12 6.50 1.77% $0.14 $0.52 8.79%
Neurocrine Biosciences Inc 38.91 6.04 7.41 6.98% $0.2 $0.51 25.05%
Incyte Corp 16.04 2.20 3.18 3.2% $0.26 $0.82 8.93%
United Therapeutics Corp 12.07 2.12 5.08 3.71% $0.32 $0.54 25.07%
Roivant Sciences Ltd 2.13 1.48 73.11 144.81% $5.11 $0.03 117.8%
Average 27.81 5.19 12.78 18.41% $1.24 $1.73 13.34%

After examining Regeneron Pharmaceuticals, the following trends can be inferred:

  • The Price to Earnings ratio of 25.97 is 0.93x lower than the industry average, indicating potential undervaluation for the stock.

  • The current Price to Book ratio of 3.83, which is 0.74x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

  • The Price to Sales ratio is 7.83, which is 0.61x the industry average. This suggests a possible undervaluation based on sales performance.

  • With a Return on Equity (ROE) of 4.56% that is 13.85% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.28 Billion, which is 1.03x above the industry average, indicating stronger profitability and robust cash flow generation.

  • Compared to its industry, the company has higher gross profit of $2.92 Billion, which indicates 1.69x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company is witnessing a substantial decline in revenue growth, with a rate of 0.58% compared to the industry average of 13.34%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When examining Regeneron Pharmaceuticals in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:

  • Regeneron Pharmaceuticals is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.1.

  • This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.

Key Takeaways

For Regeneron Pharmaceuticals, the PE, PB, and PS ratios are all low compared to its peers in the Biotechnology industry, indicating potential undervaluation. However, the low ROE suggests lower profitability compared to industry peers. On the positive side, the high EBITDA and gross profit levels indicate strong operational performance. The low revenue growth rate may be a concern for future prospects compared to industry peers.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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