Regeneron (NASDAQ:REGN) Pharmaceuticals, Inc. REGN recently announced a license and collaboration agreement with Ultragenyx Pharmaceutical (NASDAQ:RARE) Inc. RARE. Per the deal, RARE gets the rights develop, commercialize and distribute Evkeeza (evinacumab) outside the United States.
The regions include the European Economic Area. Evkeeza is approved in these regions for use with diet and other low-density lipoprotein-cholesterol (LDL-C) lowering therapies to treat adults and adolescents aged 12 years and older with homozygous familial hypercholesterolemia (HoFH).
Evkeeza was approved by the FDA in February 2021.
Per the terms, Ultragenyx will receive the rights to develop, commercialize and distribute the medicine in countries outside the United States. In exchange, Regeneron will receive an upfront payment of $30 million and is eligible to receive up to $63 million in additional potential regulatory and sales milestones. Ultragenyx will share in certain costs for global trials led by Regeneron and have the right to continue to clinically develop Evkeeza outside the United States for HoFH and other potential indications. Regeneron will continue to solely commercialize Evkeeza in the United States.
Additionally, Regeneron has granted Ultragenyx an exclusive option to negotiate a separate agreement to collaborate on the development and commercialization of an investigational antibody outside of the United States.
The antibody is currently in phase II/III development for the treatment of the ultra-rare disease fibrodysplasia ossificans progressiva (FOP) under terms to be agreed upon by both companies.
Regeneron’s shares have gained 20% in the past year against the industry’s decline of 31%.
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Regeneron’s performance has been outstanding in 2021. Strong demand for Eylea and Dupixent maintained momentum for the company. Incremental contribution from REGEN-COV has boosted the top line significantly.
REGEN-COV (casirivimab and imdevimab) is a cocktail of two monoclonal antibodies currently authorized for emergency use in the United States for the treatment and post-exposure prophylaxis in certain high-risk individuals. Earlier, the company announced that its currently authorized REGEN-COV antibodies have diminished potency versus Omicron. With Omicron gaining steam rapidly, the diminished potency against the same does not bode well for Regeneron and might result in loss of revenues.
Continued growth in Eylea and Dupixent through further penetration in existing indications and a promising late-stage pipeline set the momentum for growth. The approval of Libtayo in the lucrative indication of lung cancer should further boost the drug’s sales in the upcoming quarters.
Regeneron currently has a Zacks Rank #1 (Strong Buy). Other attractive stocks in the healthcare sector include Vir Biotechnology (NASDAQ:VIR) VIR and Alkermes (NASDAQ:ALKS) ALKS, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates for Vir have moved up $4.76 in the past 30 days for 2022. VIR is up 19% in the past year.
Earnings estimates for Alkermes have moved up a cent for 2022 in the past 30 days. ALKS is up 25.1% in the past year.
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