Shares of Regeneron Pharmaceuticals, Inc. (REGN, Financial) fell in the first quarter as a result of the significant sell-off in the biotech/pharma space and a miss on the top and bottom lines versus the expected fourth quarter results. 2016 guidance for Eylea (its lead ophthalmology asset) was sharply down from 2015. Launch of its new cardiovascular drug, Praluent, has been slow, and it lost a court case involving the drug. We have trimmed our position but decided that Regeneron deserved benefit of the doubt. Given Sanofi’s 22% ownership and its reliance on company for R&D productivity, we believe Regeneron enjoys a privileged position in the biotech universe.
From Baron Fifth Avenue Growth Fund first quarter commentary 2016.
