On Tuesday, RBC (TSX:RY) Capital Markets adjusted its price target on shares of Regeneron (NASDAQ:REGN) Pharmaceuticals, a biotechnology company traded on the NASDAQ under the ticker NASDAQ:REGN. The firm increased the target to $1,200 from the previous $1,185 while maintaining an Outperform rating on the stock.
The revision follows an in-depth analysis of phase III studies for Dupixent, Regeneron's treatment for conditions such as asthma and atopic dermatitis, in comparison to recent phase II results from competitors. The analysis took into account the BOREAS and NOTUS studies for Dupixent and compared them with phase II results for a similar drug, Tezspire, developed by Amgen (NASDAQ:AMGN) and AstraZeneca (NASDAQ:AZN).
The RBC analyst highlighted that Dupixent would have shown better performance in a population with similar severity to that studied by Amgen and AstraZeneca, suggesting that Tezspire is unlikely to be perceived as significantly outperforming Dupixent after phase III trials. Additionally, the analyst noted that Dupixent has shown improved benefits for patients with indications of more airway inflammation, which could indicate broader real-world use for patients at high risk of exacerbation without a strict eosinophil count threshold.
This potential for broader application aligns with previous Key Opinion Leader (KOL) feedback and the Committee for Medicinal Products for Human Use's (CHMP) recent recommendation for a flexible label in the European Union. Based on these findings, RBC Capital has raised its Chronic Obstructive Pulmonary Disease (COPD) estimates for Dupixent to exceed $5.5 billion, with a 95-100% probability of success (PoS) reflected in the new price target.
In other recent news, Regeneron Pharmaceuticals has been in the spotlight with several developments. The U.S. Food and Drug Administration (FDA) has decided to consider new data for the approval process of Dupixent in treating Chronic Obstructive Pulmonary Disease (COPD), leading to a delay in the Prescription Drug User Fee Act (PDUFA) goal date. BMO (TSX:BMO) Capital, however, maintains an outperform rating on Regeneron shares, anticipating Dupixent to generate $2.9 billion in sales for the treatment of COPD.
Piper Sandler also maintains its Overweight rating on Regeneron despite adjusting its fourth quarter 2024 earnings estimate for Regeneron's Eylea franchise downward due to potential short-term challenges.
Evercore ISI initiated coverage on Regeneron, assigning an Outperform rating to the stock, highlighting the potential growth of Dupixent and sustained performance of Eylea. Lastly, the FDA has granted Priority Review for the supplemental Biologics License Application (sBLA) for Dupixent as an add-on maintenance treatment for adolescents aged 12 to 17 with inadequately controlled chronic rhinosinusitis with nasal polyposis (CRSwNP). These are among the recent developments that have kept Regeneron in the limelight.
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