) announced recently that it intends to expand its corporate
headquarters and laboratories in Westchester County, New York.
The move is expected to create more than 400 high-skill jobs.
The expansion is expected to result in the addition of two new
buildings, boasting 300,000 square feet of laboratory and office
space, to the Regeneron complex in Westchester County.
Following the addition, Regeneron will occupy 85,000 square feet
additional space in the complex.
The company currently occupies approximately 590,000 square
feet there. The construction of the new buildings is expected to
commence later this year. Regeneron expects the construction to
be completed in 2015.
We believe that the expansion is aimed to support the continuous
growth at Regeneron. The company, which employed around 682
employees in 2007, currently has an employee strength of 2000.
The company's growth-engine is eye drug Eylea. Eylea was approved
in the US in Nov 2011 for the neovascular form of age-related
macular degeneration (wet AMD) indication. The drug has performed
exceedingly well since launch. In Sep 2012, the US Food and Drug
Administration (FDA) approved the label expansion of Eylea for
the macular edema following central retinal vein occlusion (CRVO)
Encouraged by the strong performance, the company forecast Eylea
sales to increase 50% in 2013 over 2012 levels ($838 million).
The FDA approval of oncology drug Zaltrap last year expanded the
product portfolio at Regeneron. Zaltrap's approval for the
metastatic colorectal cancer indication is a major boost for
Regeneron as the market represents significant commercial
EU approval for the same indication came in Feb 2013. This has
further strengthened the sales potential of the drug. The drug is
under review in many other countries. We note that Regeneron has
partnerships in place with
) HealthCare unit and
) for Eylea and Zaltrap, respectively.
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Moreover, the pipeline at Regeneron is also promising. The
facility expansion seems to be a logical move for Regeneron in
view of its strong product portfolio and an encouraging pipeline.
Regeneron, a biopharmaceutical company, carries a Zacks Rank #3
(Hold). Stocks such as
Array BioPharma, Inc.
) appear to be more favorably placed in the biopharma space. The
stock carries a Zacks Rank #2 (Buy).