On Friday, Oppenheimer analysts adjusted their outlook on Regeneron (NASDAQ:REGN) Pharmaceuticals, Inc. (NASDAQ: REGN), reducing the price target to $950 from $1,000, while still recommending the stock as an Outperform. Currently trading near its 52-week low at $733.59, the stock has seen a 19% decline over the past year.
According to InvestingPro data, analyst targets range from $565 to $1,230, reflecting mixed sentiment. The revision comes amid concerns about the company's primary product, EYLEA, facing competition from Amgen (NASDAQ:AMGN)'s biosimilar version.
The analysts noted that Regeneron's shares have been under pressure since the announcement of Amgen's biosimilar EYLEA last September. Despite market concerns, InvestingPro analysis shows the company maintains robust financials with a healthy current ratio of 5.28 and more cash than debt on its balance sheet.
The market has shown apprehension due to uncertainties about the future performance of Regeneron's founding franchise, particularly as the uptake of EYLEA HD has not met expectations. With Regeneron expected to pre-announce financial results next week, Oppenheimer conducted a survey of prescribers to gauge the potential impact.
The survey revealed that only one-third of the respondents anticipated prescribing moderate amounts of the biosimilar EYLEA over the next year. This suggests that the market erosion might be less severe than the consensus expectations. The feedback from the survey also indicated that the branded EYLEA might have a stronger competitive edge than previously thought, hinting at a possible stabilization in the near future.
Oppenheimer's analysis led to updated forward estimates for Regeneron, informing the new price target. The firm's commentary reflects a belief in the resilience of Regeneron's EYLEA against biosimilar threats, despite the recent headwinds and market sentiment. The findings from their survey offer a more optimistic view of Regeneron's position in the market as it navigates through the challenges posed by biosimilar competition.
In other recent news, Regeneron Pharmaceuticals has reported successful results from the Phase 3 QUASAR trial of EYLEA HD, a treatment for macular edema following retinal vein occlusion. The trial demonstrated that EYLEA HD showed non-inferior vision gains compared to the standard EYLEA treatment, with patients needing fewer doses.
The company plans to submit a supplementary biologics license application for EYLEA HD to the U.S. Food and Drug Administration in the first quarter of 2025.
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