Longleaf Partners Fund Portfolio Holding: Regeneron Pharmaceuticals, Inc.

REGN (trimmed position): The holding was trimmed earlier this year when the market was running hotter on Regeneron’s pipeline prospects. Of the three key pipeline readouts identified at investment, roughly one has succeeded versus two considered more likely; Dupixent, over 50% of value, has outgrown expectations, while Eylea, under 15%, has stabilized. The market is focused on the weaker near-term batting average and overlooking Regeneron’s long-term record, while share repurchases at undervalued levels and avoidance of large, value-destructive M&A remain encouraging.

Read full article (1 min)