As more and more people opt for coronavirus vaccination, we expect fewer cases of the illness. And that means less need for treatment, right? And bad news for treatment makers like Regeneron Pharmaceuticals (NASDAQ:REGN)?
Not necessarily. In this Motley Fool Live video recorded on June 22, 2021, healthcare and cannabis bureau editor and analyst Olivia Zitkus and Fool.com contributor Adria Cimino discuss why a big profit opportunity remains for Regeneron and other treatment makers.
Olivia Zitkus: I guess one of the immediate questions a lot of people would have is if 45% of Americans already are fully vaccinated, mostly protected against severe disease, should we expect whatever sales it’s already achieved to fall off a cliff? What has it already achieved sales-wise and what can we expect as vaccinations tick up?
Adria Cimino: Well, so far they’ve made about $262 million in sales in the first quarter. Again, some people have been disappointed because there hasn’t been the demand that there should have been for this. But I think actually it’s true that there are people getting vaccinated, but there’s still cases of COVID and experts say that this is going to continue, and some people who even are vaccinated are getting COVID. Then there are people who aren’t going to get vaccinated, who don’t want to be vaccinated, or who can’t mount an immune response so aren’t going to get vaccinated for that reason. There are always going to be cases here and there. The important thing for this is it is made for high-risk patients. It’s mild to moderate COVID, but for high-risk individuals. Imagine someone is high-risk, they get the vaccine, and they end up getting COVID even if it’s a mild case. Well, their doctor might say get the antibody cocktail. I think there still will be demand out there. It might not be huge sales that we’ll see in one quarter, it might be over the long term, so we should keep an eye on it. But I think that this is a really good treatment to keep an eye on, and it’s definitely positive.
Olivia Zitkus: That could definitely be more of a slow trickle than just the full rush.
Adria Cimino: Right.
Olivia Zitkus: Like we’ve seen from the vaccine players. A little bit different, but something really interesting to keep an eye on.
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