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Wgu Est1 Task 2

Decent Essays

ckground The company that I will be issuing a buy recommendation for is Regeneron Pharmaceuticals, Inc (REGN). It is a biopharmaceutical company based out of Tarrytown, New York that develops, manufactures, and sells medicines for various medical conditions. Regeneron’s commericialized drugs include EYYLEA (aflibercept), ZALTRAP (ziv-aflibercept), and ARCALYST (rilonacept.) Furthermore, there are many drugs in their pipeline. I will disclose that I have a certain bias toward this stock as I have been investing in it since early 2012. REGN has been on a meteoric rise since 2011 and while some analysts may say that the price is too high, I will show that it is not the case and there is still room to make a profit from REGN. Macroeconomic After the economy hit a slowdown in the first quarter of 2015, the US economy has likely sped up in the second quarter. The labor and real estate markets are staying steadily on their recovery paths and should let the Federal Reserve, …show more content…

U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the

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