Booming Regeneron gets the green light for a major expansion
Rapidly growing Regeneron $REGN just got the OK from its hometown officials to move forward with a major expansion that would double the company’s presence in Greenburgh, NY.
The plan includes 1-million-square-feet of new space on a 100-acre parcel less than a mile from the company’s headquarters. First announced in 2015, Regeneron now has site-plan approval from the town for the expansion, making the property one step closer to being “shovel ready.”
Construction of the new campus would be done in phases, and could begin quite quickly to meet the needs of the booming Regeneron, a spokesperson told Hudson Valley’s Journal News. Regeneron, which is Greenburgh’s largest employer, plans to put up nine new buildings of R&D space on the site.
“The potential expansion will further cement the growth of this biotech cluster in the town of Greenburgh, Westchester County and New York state and builds upon the vision laid out by the town board in the town of Greenburgh’s comprehensive plan,” said Greenburgh’s town supervisor Paul Feiner in a statement.
The expansion was spurred by Regeneron’s fast growth, with climbing revenues and booming headcount. Earlier this month, Regeneron, which has a $42 billion market cap, saw revenues increase 23% during the third quarter, driven largely by a 12% boost to US sales from its $5 billion franchise drug Eylea.
But Eylea may soon have competition to contend with. Novartis RTH258 (brolucizumab) has been touted as a potential rival to Eylea, with Phase III data that brings Novartis close to FDA approval. Novartis’ soon-to-be CEO Vas Narasimhan said their drug “was consistently superior to Eylea,” in a conference call with reporters earlier this month. Considering Regeneron took in $953 million in US sales on Eylea in Q3, a competitor could significantly cut into its total revenues.
Regeneron, of course, has more than Eylea to bank on. Just this year, Regeneron and its partner Sanofi got FDA approval for two jointly-approved drugs: Kevzara to treat RA (which outperformed Humira in late-stage trials), and Dupixent to treat atopic dermatitis. And then there’s Regeneron’s pipeline, which includes several hopefuls, including cemiplimab, a PD-1 inhibitor that just got breakthrough therapy status.