🌟 Editor's Note
Welcome to something new in the world of investment newsletters; one tailored especially for the medical professional. He who wisely wants to invest in the field in which he already has the edge of expertise; Biotech/Pharma! As a doctor or allied professional, who knows better than you which new developments will have the greatest impact on your patients? The Dilemma is that you have the experience to choose wisely, but lack the time to sort through all the hundreds of possible choices. Or perhaps you are unsure what strategy to employ once you’ve found a stock you favor.
Let this newsletter solve that dilemma for you. We will do the searching and analysis you don’t have the time for. We’ll even spell out a profitable action to take. See for yourself…
Pick of the Month
Regeneron ( NASDAQ: REGN)
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.
Companies in the News
KALA BIO Inc. (KALA) - By the end of this month, KALA will be releasing the Phase 2b data from its CHASE trial of KPI-012, a treatment for Persistent Corneal Epithelial Defect, a non-healing corneal defect that leads to perforation and vision loss, that has no current treatment. The estimated incidence is over 238,000 patients in the US, UK and Japan.
Kairos Pharma Ltd (KAPA) - Reporting its Phase 2 trial data on ENV-105, a treatment for advanced, metastatic, castration-resistant prostate cancer. So far there have been no adverse reactions reported to date.
Rapport Therapeutics, Inc. (RAPP) - Rapport is on track with its drug RAP-219 for patients with drug-resistant focal seizures. From May to now its stock rose 56%, from $10.26 to $16.01.
Cullinan Therapeutics Inc. (CGEM) - Cullinan has a co-development and co-commercialization agreement with Japan-based Taiho Pharmaceuticals to produce Zipalertinib, a treatment for non-small-cell lung cancer. This drug is interesting because it looks to be effective even in cancers with uncommon Growth Factor Receptor mutations. It will be releasing data from its Phase IIb global multicentre cohort trial. One of the reasons I love trading Biotech stocks is that their big moves are driven by these trial releases, which are conveniently publicly scheduled.
The Catalyst Calendar
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Get to know the Players
Leonard Schiefer MD, PhD, CEO of REGENERON
Dr. Schiefer was a practicing neurologist and professor at Cornell Medical School, with a PhD in Pharmacology from the University of Virginia, before he founded Regeneron in 1988. He recruited two Nobel Laureates to help him build his vision of a company “where scientists are the heroes.”
Pull the Trigger
This is the part of the Newsletter in which I spell out in detail an action or particular strategy to apply to this issue’s Pick of the Month.
While my favorite strategy usually involves utilizing options rather than buying a stock outright, in this case I am recommending the latter. When I looked up the option chain for REGN, I was frankly shocked at the price. The Market is asking $4,300 USD for one At-the-money Call contract expiring three months out! Usually one would expect it to be less than a quarter of that; one of the reasons I like options. That is a bit rich for my blood, so in this case I would stick with just buying the shares themselves.
Actually, though, such a high valuation speaks well of Regeneron. The Algorithm factors in the Market’s future expectations for the stock. To ask such a high price for where they expect it to end up three months from now is a real vote of optimism.
When buying shares of stock, I recommend the following trick: The website Sermo, which if you’ve never used it, is geared for the medical community and is quite useful, has a feature that refers doctors to paid surveys. As surveys go, those targeted to doctors are among the highest-paying of all. Now, you will never replace your income taking surveys! BUT, if you dedicate an account to accumulating the gratuities from these medical surveys and buy your stocks from that account, this “free money” will grow with time into a nice investment egg.
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Till next month,