Competitor Analysis: Evaluating Regeneron Pharmaceuticals And Competitors In Biotechnology Industry

In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Regeneron Pharmaceuticals REGN and its primary competitors in the Biotechnology industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for 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 29.21 4.04 8.61 2.73% $0.83 $2.71 -0.54%
AbbVie Inc 47.68 35.33 5.22 14.8% $4.49 $8.22 0.7%
Amgen Inc 43.92 32.84 5.60 -2.01% $2.15 $4.25 21.98%
Vertex Pharmaceuticals Inc 30.53 6.55 12.04 6.09% $1.34 $2.35 13.3%
Gilead Sciences Inc 176.19 4.51 2.90 -20.66% $-3.54 $5.13 5.26%
Biogen Inc 28.73 2.20 3.47 2.62% $0.68 $1.75 -7.0%
BioNTech SE 201.74 1.14 8.39 -1.57% $-0.29 $0.13 -85.31%
Genmab A/S 23.93 3.94 7.36 4.13% $1.72 $3.96 46.19%
Biomarin Pharmaceutical Inc 72.09 2.86 5.96 1.77% $0.14 $0.52 8.79%
Neurocrine Biosciences Inc 38.02 5.90 7.24 1.88% $0.04 $0.51 22.57%
Incyte Corp 17.82 2.45 3.53 3.2% $0.26 $0.82 8.93%
United Therapeutics Corp 13.07 2.29 5.49 5.42% $0.43 $0.6 33.7%
Sarepta Therapeutics Inc 288.91 12.22 8.42 3.97% $0.05 $0.36 63.1%
Roivant Sciences Ltd 2.08 1.35 72.45 -2.51% $-0.18 $0.02 5.68%
Average 75.75 8.74 11.39 1.32% $0.56 $2.2 10.61%

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

  • With a Price to Earnings ratio of 29.21, which is 0.39x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

  • Considering a Price to Book ratio of 4.04, which is well below the industry average by 0.46x, the stock may be undervalued based on its book value compared to its peers.

  • With a relatively low Price to Sales ratio of 8.61, which is 0.76x the industry average, the stock might be considered undervalued based on sales performance.

  • The company has a higher Return on Equity (ROE) of 2.73%, which is 1.41% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.

  • Compared to its industry, the company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $830 Million, which is 1.48x above the industry average, indicating stronger profitability and robust cash flow generation.

  • The company has higher gross profit of $2.71 Billion, which indicates 1.23x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • With a revenue growth of -0.54%, which is much lower than the industry average of 10.61%, the company is experiencing a notable slowdown in sales expansion.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.

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.

By considering the Debt-to-Equity ratio, Regeneron Pharmaceuticals can be compared to its top 4 peers, leading to the following observations:

  • Regeneron Pharmaceuticals exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.1.

  • This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for investors.

Key Takeaways

For Regeneron Pharmaceuticals in the Biotechnology industry, the PE, PB, and PS ratios are all low compared to peers, indicating potential undervaluation. The high ROE, EBITDA, and gross profit suggest strong profitability and operational efficiency relative to industry competitors. However, the low revenue growth may pose a challenge for future performance compared to peers experiencing higher growth rates.

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

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