You may be familiar with Regeneron from its existing products of Eylea (for treating macular degeneration), Libtayo (for skin cancers) and Duplixent (an immunology agent for eczema). It was one of the first companies to come out with a vaccine for COVID. It also made a rapid-response drug treatment to stop outbreaks of the Ebola virus.But Regeneron has been in the news lately for its new drug, Trevogrumab. The recent Phase 2 COURAGE trial results showed that combining Trevogrumab with the GLP-1 agonist semaglutide (Ozempic) cut the loss of lean muscle mass in half in the test subjects. Why is this a big deal?The soaring rise in GLP-1 agonists worldwide has been phenomenal, due to its off-label use for weight loss. Fueled by celebrity endorsements and social media (Tik Tok views tagged for #Ozempic passed 1.2 billion last year!), its use has skyrocketed. Its parent company, Novo Nordisk, has seen its evaluation increase so high that it has outstripped the economy of its home country of Denmark itself! In the U.S., millions of users are paying over $1,000 per month for it. In fact, the demand has outstripped the supply, that even has some weight loss clinics creating their own ‘black market’ counterfeit GLP-1 drugs!But, there is a downside to its use, that is beginning to cause an increase in the dropout rate among its users, and threatens to end the gravy train ride its manufacturers have been enjoying. As much as 33% of the weight loss achieved by the drug is from lean muscle mass loss, an obviously undesired side effect. Moreover, when patients discontinue the drug, they tend to regain their weight as mostly fat mass, altering their body composition in a decidedly negative manner.As you can imagine, this has the pharmaceutical industry profoundly worried. But here comes Regeneron to the rescue! Their Trevogrumab is an inhibitor of the Growth Differentiation Factor 8 (GDF8) protein in muscle, a protein that inhibits muscles from growing too large. In effect, trevogrumab “releases the brake” on muscle growth, preserving lean muscle mass during semaglutide treatment. It also opens up a new treatment protocol for sarcopenia. During the COURAGE trial it also showed improved waist circumference, blood pressure, and cholesterol levels across all treatment groups.The market for this drug already exists and is HUGE. Users of Ozempic, Wegovy, and all other GLP-1 knockoffs will glamour to add Trevogrumab to their regimen. It is my #1 recommendation for acquisition this month. Regeneron (REGN) is currently priced at 591.99 USD as of Sept. 19, 2025.This price is at a discount value compared to recent weeks because of a decision in Australian courts denying Regeneron’s motion to block a competing drug to their best-seller, Eylea (aflibercept). In my opinion, the Market is over-reacting to this, producing the current retracement. For one thing, this decision only affects Australia, and with a total Australian population of 27 M as compared to the United States’ 360 M, the effect on sales will be minor. Furthermore, this mildly negative news is more than balanced by the positive news regarding its drug Dupixent (dupilumab), which has won approval in Europe for a new use.This temporary over-reaction presents an opportunity to purchase this stock at a relative discount. Emotions will settle down, steadier minds will realize that none of the company’s financial fundamentals have changed, and forward-looking minds will realize the immense potential of Trevogrumab. I recommend this as a mid- to long-term buy. At the time of this writing, REGN is trading at 576.98 on the New York Stock Exchange.
