Does Regeneron Pharmaceuticals’ Winning Streak Signal Irrational Exuberance?

Year to date, shares of Regeneron Pharmaceuticals (NASDAQ: REGN) have gained nearly 50% despite significant declines in the overall market. Arguably, strong growth from its core pipeline consisting of Eylea (eye injection used to treat various forms of retinal disorders) and Dupixent (biological therapy used to treat allergies) have been fueling the rally. In addition, the company possesses a major catalyst in the form of a potential novel treatment for COVID-19, which will release topline results by the end of April. 

Meanwhile, a small detail tucked away in the company's annual report may signal significant problems ahead. Starting this year, patents covering Eylea will begin to expire, putting nearly $5 billion worth of revenues at risk from biosimilar competition. Will the company be able to continue its growth streak going forward? Let's find out below.

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Source Fool.com