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Here’s why this analyst lowered his price target on Regeneron

  • RBC Capital Markets went down Regeneron Pharmaceuticals Inc’s target price REGN from $679 to $647 and maintained a Sector Perform rating.
  • Verifications suggest that the growth/sustainability of Dupixent (dupilumab) should remain strong in both new and existing indications, maintaining positive sentiment.
  • Analysts also believe concerns about short-term competition from Eylea may be overblown. However, the high-dose data, expected in 2H 2022, should be impressive to fully defend against biosimilars.
  • According to RBC, the Phase 2 data showed consistent signals of anatomical and visual acuity efficacy benefits for 8mg versus 2mg of Eylea with no notable safety liability.
  • But KOL’s comments suggest that these differences may be subtle, and doctors are probably already using Eylea 2mg less frequently than the Q8W tested in the phase 3 control arm. Moreover, safety has again been entirely de-risked.
  • This gives a probability of success of 70%.
  • Read also : FDA extends review period for Regeneron’s COVID-19 antibody therapy.
  • Ultimately, RBC forecasts $6.2 billion in Eyelea brand sales in the U.S. in 2022 (vs. consensus $6.1 billion), declining to $4.2 billion probability-weighted by 2026 (compared to $4.7 billion according to the consensus).
  • RBC says the R&D engine is a strong operating lever that should enable EPS to significantly leverage the success of cancer/genetics pipeline evolution over the long term.
  • Yet, it remains unclear whether these assets or the COVID-19 antibody stimulus can provide an upside inflection.
  • Price action: REGN shares are down 1.44% at $649.63 in Monday’s last check trading session.