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Biotech Stock Starts Rocky Month with Covid-19 Headwinds

REGN's antibody cocktail may be less effective against the omicron variant

Deputy Editor
Dec 1, 2021 at 11:28 AM
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Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has been in the spotlight this week, after the company's CEO Leonard Schleifer noted its Covid-19 antibody cocktail may be less effective against the omicron variant. The biotech name also reported that the treatment remains very effective against delta, though, which is still predominant in the U.S.

The omicron variant may not be the only thing Regeneron stock has to worry about, however. It's important to note that the equity has historically underperformed this month. More specifically, REGN has appeared on Senior Quantitative Analyst Rocky White's list of worst 25 stocks to own in December.

On the charts, the stock spent most of November struggling to break past pressure at the $660 level, while a floor at the $640 mark supported the shares. After its treatment efficacy against omicron was put into question yesterday, the equity slipped below that floor. At last check, REGN is up 0.6% to trade at $640.60, though.

Of the 16 analysts in coverage, nine carry a "strong buy" rating on the biotech concern, while seven say "hold." Meanwhile, the 12-month consensus price target of $705.31 is a 10.4% premium to the stock's current levels, and represents what would be a new record high. 

Though shorts have been jumping ship, with short interest down 14.6% during the most recent reporting period and now representing just 1.6% of the stock's available float, the stock has failed to experience a swing higher. This could be indicative of technical weakness in REGN. 

 

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