Regeneron (REGN) Stock Closed Up on Q3 Results

NEW YORK (TheStreet) -- Shares of Regeneron Pharmaceuticals  (REGN)  advanced on heavy trading volume Friday after reporting 2016 third-quarter earnings above analysts' expectations.

Before the market open, the Tarrytown, NY-based biopharmaceutical company reported adjusted earnings of $3.13 per share, beating analysts' estimates of $2.69 a share. 

Revenue rose 7% year-over-year to $1.22 billion but missed analysts' projections of $1.29 billion.

Sales of the company's Eylea treatment rose 16% to $854 million, while sales of its Praluent treatment grew to $38 million from $4 million a year ago. Analysts surveyed by FactSet were looking for sales of $854 million and $32 million, respectively.

RBC said it likes the risk/reward balance of the stock below $350, Barron's reports.

"While there are more clinical, regulatory and commercial drivers in 2017, including final Praluent outcomes data, Phase 2 updates from combination Eylea program (Eylea + anti-ang2 in DME and AMD), dupilumab approval launch and more Phase 3 data (addresses unmet need with no competitor), as well as others, in our view the question more is around the urgency to buy ahead of potential disruptors, such as Ophthotech's Fovista Phase 3 data and a decision on the permanent injunction against Regeneron/Sanofi's (SNY) Praluent, even if valuation is compelling," the firm said.

About 1.89 million shares of Regeneron were traded today, well above the company's average trading volume of roughly 681,022 shares a day.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Regeneron's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity and increase in net income outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: REGN

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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