Is Cathie Wood a genius investor? The CEO of Ark Invest, an investment management firm, rose to prominence in the early days of the pandemic; her firm’s actively managed ETFs performed well even as the rest of the market moved in the wrong direction.
While his performance has been more mixed since then, there’s no doubt that some of Wood’s picks appear to be long-term winners. Let’s look at two of the picks that could deliver exceptional returns through 2030: Regeneron Pharmaceuticals (NASDAQ: REGN) And Shopify (NYSE: BOUTIQUE).
1. Regeneron Pharmaceuticals
Since January 2020, Regeneron has been performing exceptionally well, up more than 200%, despite many obstacles. One of the company’s biggest cash cows, Eylea, which treats age-related macular degeneration (an eye disease), is facing risks from biosimilars.
In fact, a couple of Eylea biosimilars were approved by the U.S. Food and Drug Administration earlier this year. Beyond that, Eylea has had to fight off competition from RockVabysmo since the latter’s approval in January 2022.
Revenue has also been somewhat uneven due to pandemic-related issues. However, the drugmaker has fared better than well. Its COVID-19 antibody drug, REGEN-COV, generated significant sales early in the outbreak. And while it’s no longer approved in the U.S., it was arguably never a big part of Regeneron’s long-term plans.
The strong, if somewhat erratic, revenue from the product makes comparisons with previous years unflattering for Regeneron, but it has allowed the company to generate sales it would not have achieved otherwise. Overall, the biotech’s financial results have been strong.
As for Eylea, while some expected that competition, biosimilar or otherwise, would cause its sales to plummet, Regeneron launched a high-dose formulation of the drug last year, which is helping to keep its revenue afloat. In the second quarter, combined net sales of Eylea and Eylea HD rose 2% from a year earlier to $1.53 billion. Regeneron’s Dupixent, an eczema treatment marketed jointly with Sanoficontinues to be its main growth driver.
Regeneron reported $1.1 billion in revenue from its collaboration with Sanofi in the second quarter, up 21% from a year earlier. Regeneron’s total revenue was $3.55 billion, up 12% from the year-earlier quarter. The company can’t deliver good financial results every quarter; no company does.
Regeneron’s ability to navigate challenges is what matters most. The biotech was able to mitigate losses related to Eylea and make the most of a difficult situation during the pandemic by developing an antibody against COVID-19, thanks to its innovative capabilities.
And Dupixent is still awaiting a major expansion of its approval in the United States for the treatment of chronic obstructive pulmonary disease (COPD).
Regeneron stocks jumped after announcing good results for Dupixent in a pivotal clinical trial for the treatment of COPD. This is not surprising. Some analysts predict that this indication…
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.