Regeneron Pharmaceuticals Inc (REGN)

[surf1944]

Regeneron Pharmaceuticals Inc., a biopharmaceutical company focused on the treatment of serious medical conditions, is likely to see FDA approval for its EYLEA on its November 18th PDUFA date, according to Roth Capital. And after Roche’s Avastin caused at least 16 serious eye infections, the drug could have a larger-than-expected end market.

shorted at $67, seems to be overbought

The infections from Roche’s Avastin have left many patients blind, while a study by John Hopkins University found that patients given Avastin to treat AMD were 11% more likely to die and 57% more likely to suffer a stroke than those treated with the more expensive Lucentis. With these problems in the market, a potential approval for EYLEA could help the drug into a very ready marketplace.

Investors interested in gaining exposure to this opportunity may want to consider at-the-money February 2012 calls trading with a premium of $11.30. With a breakeven point of $71.30, any more beyond this would have a cost basis of just $11.30 per share, making the upside potential very significant and the upfront capital requirements relatively modest.

http://seekingalpha.com/article/291187-3-analyst-healthcare-picks-ready-to-break-out?source=yahoo