Regeneron’s Treatments and Ties to the President
Regeneron Pharmaceuticals was one of the many different companies pegged for federally funded research and development regarding treatments and vaccines for COVID-19 under the aptly named Operation Warp Speed. The choice by President Trump to include them in the project resulted in Regeneron receiving $450 million in July in order to expedite the process for which these treatments and vaccines could potentially reach the public.
The byproduct of that funding has been an antibody cocktail which has thus far reached phase 3 trials and is awaiting FDA approval. The results so far look extremely promising. Of the 275 patients in phase 2 trials, the antibody cocktail has shown to drastically reduce the viral load in patients as well as significantly improve symptoms for some as well. Phase 2 trials began in June with the beginning of phase 3 trials beginning only a month later. While the cocktail has not yet been approved by the FDA, it can be approved on a case by case basis by the administration through compassionate use requests.
A compassionate use request was sent in from the White House in order for President Trump to receive the cocktail after he himself contracted COVID-19. The request was approved, and, after a brief stay in the hospital, where President Trump received a series of other treatments, he left on Monday, October 5th.
The news of President Trump receiving the antibody cocktail had major implications both for his own ties to Regeneron as well as how the company’s stock would perform when the market reopened. President Trump and Regeneron’s CEO, Dr. Leonard Schleifer, have been acquainted previous to this year’s series of events leading to questions behind Regeneron’s choice in Operation Warp Speed. Dr. Leonard Schleifer has been a member of President Trump’s golf club in Westchester, New York for a considerable period of time. Worth noting as well is the fact that during the president’s 2017 filing with the United States Office of Government Ethics, stocks of Regeneron were listed under his assets. During his 2020 filing however, those stocks were no longer listed. While this may seem concerning, it should also be noted that President Trump owns stocks in other pharmaceutical companies vying for treatments and a vaccine for Covid-19 as many other stockholders do.
How Regeneron Has Done in 2020
After being chosen as one of the companies in Operation Warp Speed as well as being used by President Trump as part of his own treatment, Regeneron has grown significantly. In fact, the company has grown by 60% year to date, and if that metric is expanded to a full 12 months, the growth stands at 110%. Regeneron’s stock has seen a similar upward trajectory with the low on the year being $344.08 per share on January 22nd, and the current price as of October 5th being at $605.08 per share.
Due to President Trump taking the antibody cocktail, and leaving the hospital so quickly, the shares of Regeneron shot up by 7.13% in one day this Monday. Regeneron has also dramatically increased their revenues this year as well. In their most recent quarterly report, the company generated $1.952 billion. In comparison to the same quarter in 2019, this is a significant growth of 23.72%. From March to today, CEO, Dr. Leonard Scheifer has seen his net worth rise from $2.1 billion to $2.5 billion.
Despite any history between the CEO of Regeneron and President Trump, the major takeaways remain the robust growth of the company as a whole over the course of the year as well as the very promising results from the antibody cocktail that has been developed. With strong responses in patients as well as President Trump, given the information available, it appears that Regeneron has created an effective treatment for specific cases of COVID-19 that could make a potentially life saving difference for the millions who have been affected by the virus this year.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.