- RBC Capital Markets has lowered Regeneron Pharmaceuticals Inc's price target (NASDAQ:REGN) from $679 to $647 and maintained a Sector Perform rating.
- Checks suggest that Dupixent (dupilumab) growth/durability should remain strong in new and existing indications, maintaining positive sentiment.
- The analysts also believe that the concerns about near-term Eylea competition may be overblown. However, high-dose data, expected in 2H 2022, would need to be impressive to defend fully vs. biosimilars.
- According to RBC, Phase 2 data showed consistent signals of anatomical and visual acuity efficacy advantages for 8mg vs. 2mg Eylea without any notable safety liability.
- But KOL feedback suggests these differences may be subtle, and physicians are likely already using Eylea 2mg less frequently than the Q8W being tested in the Phase 3 control arm. Also, safety has yet been entirely de-risked.
- This gives a 70% probability of success.
- Also Read: FDA Extends Review Period For Regeneron's COVID-19 Antibody Therapy.
- Ultimately, RBC forecasts $6.2 billion in 2022 branded U.S. Eyelea sales (vs. $6.1 billion consensus), declining to a probability-blended $4.2 billion by 2026 (vs. $4.7 billion consensus).
- RBC says that the R&D engine is robust operating leverage that should enable meaningful EPS pull-through on the success of evolving cancer/genetics pipeline long-term.
- Still, it remains unclear whether these assets or COVID-19 antibody revival can provide upward inflection.
- Price Action: REGN shares are down 1.44% at $649.63 during the market session on the last check Monday.
