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So what: The approval officially puts Regeneron in a prime market position, as its drug, Eylea, can be injected less frequently and costs 5% less than the current standard, Roche's Lucentis. When you couple that perceived edge with the fact that incidents of the disorder are only expected to grow as baby boomers age, it's no surprise that the shares are jumping on the news.
Now what: Eylea is expected to hit peak sales of about $1 billion in roughly 10 years as the drug's usefulness in other areas grows. As of now, however, Regeneron only has one other marketable product and is still unprofitable. Today's news certainly bodes well for the company, but with most of its products still very much in the development stage, Regeneron remains best-suited for speculative, less risk-averse types.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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