Our worst performer was Regeneron Pharmaceuticals (REGN, Financial). It reduced the Fund’s returns by 61 basis points as the stock sank 11.4% from $313.00 to $277.40.* Regeneron is a biotechnology company that focuses on treatments for eye and heart diseases, cancer and inflammation. Its blockbuster drug, Eyelea, continues to face pressure from both Novartis’s impending drug approval in late 2019, as well as generic competition in 2023. These concerns are somewhat mitigated by the strong commercial launch and expanded indications for Dupixent, Regeneron’s drug for adolescent eczema. We believe Regeneron continues to have a strong pipeline with its launch of Dupixent and recent approval for Praluent, a drug that reduces the risk of heart attacks.
From Jerome Dodson (Trades, Portfolio)'s third-quarter 2019 Endeavor Fund shareholder letter.
